UK: Vita Group has secured funding from Cain International and PGIM Real Estate to finance the construction of Union, its two-tower coliving scheme at Allied London’s Enterprise City.
Cain will provide £148 million, with PGIM Real Estate contributing £43 million. Construction of the towers is underway, with Renaker appointed as main contractor.
Located on Water Street within Allied London’s £1 billion St John’s district, Union will create 1,676 bed-spaces, 131 of which will be offered on affordable tenures.
Tower one of the Denton Corker Marshall- designed scheme is expected to complete in spring 2024, tower two in the summer of 2025.
Mark Stott, Vita Group chief executive, said: “Union has been designed to mobilise the next generation of young professionals creating a product that provides the perfect blend of amenity, service, and space in a sought-after location and at a price which is accessible. Having financial partners Cain and PGIM Real Estate onboard with this project ensures Vita can focus on future developments and growth opportunities,” Stott added.
Graham Keable, principal at Cain International, said: “We have been steadily increasing our exposure to key UK markets in recent years, as we find the fundamentals supporting higher education and BTR in UK cities to be highly attractive for our strategy.”
Andrew Macland, head of european debt at PGIM Real Estate, said: “Union represents an exciting opportunity for any financier – a prime location mixed with an exciting product delivered by a business with a proven track record for creating stand-out BTR and PBSA.”
The St John’s development will also feature 320 hotel rooms, 560,000 square feet of office space, 240,000 square feet of retail and 13 acres of public realm.
