The University of Essex has struck a £60.6m deal with the Pension Insurance Corporation for investment into a new build 643 bed student accommodation development on the Colchester Campus. The latest deal adds to a previous £98m refinance package for existing accommodation for the University. PIC aim to hold the investment for the long term with nominations agreements with UoE to support the income profile.
The secured bonds are rated AA by S&P, with a guarantee from Assured Guaranty. The project sponsor is Uliving with Bouygues UK Limited as main contractor. TradeRisks arranged the deal for the bond issue. PIC has invested around £500 million in the student accommodation sector over the past three years.
Key points of the transaction:
- The project is for construction of a 643 bed student housing development on the University of Essex Colchester campus
- The inflation-linked debt structure and amortising profile maturing in 2063 is a good match for PIC’s pension liabilities
- Bonds are rated AA by S&P, benefiting from a guarantee by Assured Guaranty
PIC has invested around £2.5bn in direct and bilateral deals, including with providers of student accommodation, universities, renewables and over £700m in social and affordable housing across the UK.