UPP’s genuine university partnerships have secured its position as a leading adviser to the HE sector. A strong communications strategy and collaborative research continue to support the company in its ambitious plans for the future.
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13/10/2009 - 100% Occupancy Rates Announced for UPP Student Accommodation at Start of New Academic Year
UPP, the leading on-campus provider of student accommodation, has filled 100% of the student rooms operated within its portfolio for the start of the academic year 2009/10. It is estimated that this 100% rent roll – a sector-leading position – will deliver a total rental income of £75 million for the company in 2009/10. UPP designs, finances and operates residential and academic accommodation with university partners across the UK, and has begun the new academic year by welcoming record numbers of students to live in UPP developments.
UPP has long-term partnerships with many of the best UK universities, and is celebrating having achieved a 100% occupancy rate across all of the student accommodation facilities operated by the company. With an existing portfolio of almost 19,000 student rooms, UPP has now invested over £1 billion into the higher education sector and plans to invest a further £1 billion over the next two years.
The success of UPP’s unique model, based on long-term partnerships with high quality universities, has resulted in UPP continuing to expand its portfolio, with almost 2,500 additional rooms in development and thousands more in the pipeline. For example, UPP successfully transacted a £133 million initiative (£112 million of senior debt equally provided by Barclays Commercial Bank and RBS) with the University of Exeter in September 2009, establishing a long-term partnership to increase the amount of on-campus residential accommodation available to students. The deal was one of the largest transactions completed in the UK during this summer, demonstrating the level of confidence the financial community has in UPP’s unique model. And, bucking current property sector trends, UPP opened a new sustainable Eco Residence at Leeds Metropolitan University, in August 2009, a £25 million transaction solely funded by Barclays Commercial Bank, which is now home to 479 students.
Sean O’Shea, Chief Executive of UPP, said:
“Our unique model, which involves long-term partnerships with universities, was set up to provide a stable and attractive investment opportunity and our 100% occupancy rate and £75 million estimated rental income, for the new academic year, are testament to the success of this strategy. Despite the credit crunch, we are finding the financial community has a growing appetite for this kind of investment opportunity, delivered through UPP’s unique model, and we are securing record levels of private sector funding for our university partners. Achieving 100% occupancy, across our portfolio of almost 19,000 student rooms, demonstrates that we provide the kind of high quality student accommodation that students want and universities need.”
Mark Quigley, Director, Structured Property Finance Team, Barclays Commercial Bank, said:
“Barclays Commercial Bank has been UPP’s main funder for over a decade and we are delighted to have provided £55m in senior debt, alongside syndicated partners, for the recent transaction with the University of Exeter. With Barclays expertise in financing student accommodation and a strong appetite for similar deals, we are able to help improve the supply of on-campus student accommodation at a time when more students than ever before are applying to go to university. UPP has a robust business model and strategy, and we are looking forward to providing future support.”
Stuart Foster, Director, RBS UK Corporate Banking, and Vivek Sapra, Director, Infrastructure, Structured Finance, RBS UK Corporate Banking, said:
"RBS is a long standing investor in UPP's long term partnership business model and the recent £133m Exeter transaction, in which RBS was Joint Mandated Arranger, raised Senior Debt of circa £112m secured on predictable long-term revenue streams. RBS expects to provide similar support to UPP for other transactions in the future. With UPP delivering such strong occupancy rates, RBS is confident that the University Accommodation sector will be an important investment opportunity in the future."
ENDS
For more information, please contact:
Ian Lindsley, Ben Russell, Fran O’Leary, Jefferson CommunicationsTel: +44 (0)20 7256 8912
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