University Partnerships Programme (UPP) has secured £139.7m for its expansion of the University of Exeter at East Park.
The investment includes £125.1m of index-linked debt financing on a 48-year term from Pension Insurance Corporation and £14.6m of subordinated debt from UPP Group.
UPP will design, build, fund and operate 1,182 rooms at Streatham Campus, the university’s largest campus.
The company first partnered with the University of Exeter in 2009. The latest deal is the third on-campus scheme in the partnership and brings the total rooms that UPP will operate to 4,000.
Richard Bienfait, CEO at UPP, said: “This new project is a testament to the strength of our bespoke, long-term partnership with the University of Exeter.”
Florence Carasse, debt origination manager at Pension Insurance Corporation, said: “This investment is another step in our long-term relationship with UPP, which has seen us invest in some of the leading universities in the UK. The emphasis we have in our portfolio is to ensure the cashflows are secure and will be there to meet our pension liabilities.”
It is PIC’s sixth investment with UPP, taking the total to around £530m.
Construction at East Park will begin in January, with the accommodation expected to complete over two phases in September 2020 and September 2021.
UPP has appointed Vinci Construction UK on the build, which has a construction value of £91m.
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