Cain provides €74m loan for Spanish PBSA scheme

The financing for the 585-bed Vita Student project in Madrid is the lender’s first in Spain.

London-based private real estate company Cain International has provided a €74 million development loan to joint venture developers Vita Group and Metrovacesa for a purpose-built student accommodation scheme in Madrid.

The financing will support the development of a 585-bed Vita Student project, which is part of the wider Oria Campus scheme being delivered by Metrovacesa. The Oria Campus is located in the north of Madrid. The scheme also includes a multifamily build-to-rent residential tower, office space and a life science lab spread over 958,000 square feet.

The loan is the first in the Spanish market for Cain’s lending team, and is the fifth loan it has provided to Vita. The London manager said it has lent £400 million (€467 million) of construction financing to Vita to support its PBSA strategy across key UK university cities including Manchester, Warwick and Coventry, delivering 4,000 beds.

“Madrid’s student sector demonstrates favourable long-term fundamentals, and this transaction represented a unique opportunity to expand Cain’s lending platform to a new market with a longstanding and reputable partner,” said Graham Keable, managing director at Cain.

The scheme is expected to be delivered before the start of the 2026-27 academic year.

Cain is among several lenders that have announced loans in the European PBSA market this month. Last week, Rhize Capital, a joint venture between student accommodation specialist lender Kinetic Capital and US private equity firm Kayne Anderson Real Estate, provided its debut PBSA loan in continental Europe with a €100 million facility to developer Proprium Capital Partners for two student housing schemes in Milan.

The previous week, Puma Property Finance, a subsidiary of London-based investment firm Puma Investments, originated a £72 million construction loan to a JV between developers Olympian Homes and Housing Growth Partnership for a student housing scheme in Nottingham, UK.

An acceleration of investment into the sector was predicted by real estate consultant Savills in November 2023, when results from its industry survey suggested more than €12 billion will be invested in European PBSA over the next two to five years, led by Spain, Italy, Germany, France and Portugal.

It cited Spain, Italy and Portugal as markets with limited provision of PBSA, highlighting significant growth potential amid rising numbers of national and international students.