Addleshaw Goddard's Real Estate, Construction and finance teams have advised key client UPP, on the c. £126m transaction with the University of Hull, for a new accommodation scheme at the University's west campus site.
The partnership between UPP and the University of Hull will see the development of nine new student accommodation blocks providing 1,462 rooms at the West Campus Residences and the operation and refurbishment of 288 rooms at the existing Taylor Court accommodation. The project was funded through the issue of c. £126m Baa3 rated senior secured bonds with Allianz Global Investors GmbH acting as majority bondholder representative. UPP and the University also invested a combined c. £27m of equity and subordinated debt into the project.
The West Campus Residences, will be developed by Vinci Construction UK Limited with UPP managing the construction process and operating the development when it is completed in 2019.
The cross-divisional AG team was led by Construction and Projects partner Andrew McVeigh - who heads up the firm's sector focus on Student Housing - and is the first partnership between the University of Hull and UPP.
Andrew McVeigh stated: "Often described as a safe haven for investment, the student accommodation sector continues to outperform other property asset classes. UPP's investment and commitment to developing high quality purpose built student accommodation also resonates with market trends – which shows that attracting new students, is dependable on the quality of their accommodation and of course the location in which it sits. The West Campus development, will not only contribute to the university's growth plans, but provide students with stellar accommodation in a city which continues to thrive."
Sean O'Shea, Group Chief Executive Officer of UPP said: "We are delighted to have supported the University of Hull’s plans to develop the multi-million pound West Campus Residences Project. Our partnership will enable more students to live on campus at the heart of this fantastic institution. The scheme will facilitate the University’s ambitious plans and have a positive impact on the wider community.
"By investing further in exceptional infrastructure that enhances the distinctive features of the University’s campus and promotes sustainable living, the University will build on its market-leading position of delivering the very best student experience. To date this year, UPP has secured £155 million for the University of Hull, while it also reached financial close on a £104.7 million deal to enhance and increase accommodation at the University of London and its institutions."
AG is a market-leading legal adviser in the student accommodation sector. The team covers the full spectrum of work including investment, development, funding, operation and management.