University Partnerships Programme (UPP), the leading provider of on campus student accommodation infrastructure and support services in the UK announces the refinancing of UPP (Byron House) Holdings Limited. The transaction will see Nottingham Trent University’s flagship accommodation, Bryon Residence placed on cost effective, long term funding.
The total funding was £78.5 million. Allianz Global Investors (AllianzGI) provided £67.3 million index-linked debt on a tenor of 33 years, while UPP and Nottingham Trent University provided £11.2 million of subordinated debt and equity.
Secured by private placement, the transaction is the Group’s second scheme backed by AllianzGI, who has now invested more than £185 million with UPP in higher education infrastructure over the last two years.
Byron Residence, which became operational for the academic year 2013/14 includes study bedrooms, student union facilities, as well as a café, gym and entertainment venue with 2,000 person capacity. Its 911 study bedrooms have been fully occupied each year since inception.
Gabriel Behr, Group Finance Director, UPP commented: “The successful refinancing of Byron Residence represents the completion of the Group’s strategy to ensure all our special purpose vehicles are funded on a sustainable and long term basis. It also illustrates the continued appetite in the market for secure investment grade rated infrastructure assets, which offer investors both attractive and stable returns with internationally renowned universities.”
Adrian Jones, Director of Infrastructure Debt, AllianzGI said: "We are delighted to have refinanced a second transaction for UPP, who share our long term investment philosophy. Byron House is our first unlisted sterling project bond. It utilises the new "Qualifying Private Placement" regime introduced by HMRC in January, which allows more efficient inward investment in UK infrastructure projects by our international investors, alongside our domestic pension fund clients. The stable inflation linked payments under the bond provide good value long term funding for UPP and its partner, Nottingham Trent University, while offering a strong matching asset for our pension fund clients seeking to fund future pension obligations."
The Queen's Anniversary Prize for Higher and Further Education was awarded to Nottingham Trent University in November 2015. It is the highest national honour for a UK university and recognises the institution’s world-class research. Pioneering projects to improve weapons and explosives detection in luggage, enable safer production of powdered infant formula, and combat food fraud, led to the prestigious award.