University Partnerships Programme (UPP), provider of on-campus residential and academic accommodation infrastructure, has successfully reached financial close on a £139.7m deal with the University of Exeter on its East Park project
The deal will see UPP design, build, fund and operate 1,182 high-quality bedrooms on the University’s Streatham Campus. The East Park project will comprise a mixture of standard, en-suite and enhanced accessible bedrooms and will represent the largest build of on-campus accommodation at the University since 2012.
On completion, UPP will operate over 4,000 rooms on the University of Exeter campus. The deal boosts UPP’s portfolio to over 35,000 rooms in operation or under construction through long-term partnerships with 15 leading UK universities.
The investment will include £125.1m of index-linked debt financing with a tenor of circa 48 years from Pension Insurance Corporation plc (PIC) and £14.6m of subordinated debt and equity provided by UPP Group and its Shareholders.
UPP has appointed contractor Vinci Construction UK to deliver the development, which has a construction value of £91m.
Richard Bienfait, Chief Executive Officer of UPP, said: “This new project is a testament to the strength of our bespoke, long-term partnership with the University of Exeter, first formed in 2009. When complete, we will operate over 4,000 on-campus residences in Exeter, in continued support of the University’s strategy and providing the very best student experience.
“We are delighted once again to be working with PIC who are a reliable and flexible partner for us and have demonstrated a clear commitment to the higher education sector and its need for high-quality facilities.”
Mike Shore-Nye, Registrar and Secretary at the University, said: “East Park is a very exciting new project for the University of Exeter, which will enhance our facilities and increase the number of on-campus bedrooms we have available for future students.
“Reaching financial close is a key milestone for the project and we look forward to seeing the construction phase commence in the very near future.”
Construction of the East Park project is scheduled to commence in January 2019, with the rooms set to become operational over two phases in September 2020 and September 2021.