First rooms in UPP scheme to be ready for 2018 intake
Vinci has started work on a £97m student accommodation project for the University of Hull following the conclusion of a funding deal.
University Partnerships Programme (UPP) has reached financial close on a £155m deal with Hull, which when complete, will see it operate 1,750 rooms across the campus of the higher education institution.
The investment will consist of £127.6m of 40-year index linked bonds issued by Allianz Global Investors (AGI) and £27.4m of unsecured debt and equity provided by a combination of UPP Group, its shareholders and the university.
The investment will finance a development consisting of 1,462 new single rooms and one bedroom apartments, which will be housed in nine blocks in scale with neighbouring buildings on the campus. UPP is also refurbishing 288 existing rooms at the University’s Taylor Court, which it is taking over the operation of.
Alongside the accommodation, UPP is creating an urban green and avenue, which will be lined by new facilities including a café, convenience store, laundry facilities and formal and informal outdoor areas.
Vinci, which has been appointed top tier contractor on the project, has started initial works.
The first 478 new rooms are scheduled to be available for the 2018 student intake and the remaining 984 in September 2019.
AGI and UPP Group have previously teamed up on investments at the University of Exeter and Nottingham Trent University.
Adrian Jones, director of infrastructure debt at AGI, said: “That this transaction is our third investment on behalf of our clients into UK higher education in three years, reflects just how much the UK infrastructure debt market has matured.
“We continue to see strong demand from our clients to invest in infrastructure assets that as well as offering them the long-term, stable cash flows they need also support regional economic competitiveness, providing an attractive investment opportunity as well as supporting our quality of life”.