University Partnerships Programme (UPP), a provider of on campus student accommodation infrastructure and support services in the UK, has recently closed a £78.5 million (US$112 million) refinancing scheme for the Bryon Residence in Nottingham, United Kingdom.

Under the terms of the agreement, Allianz Global Investors (Allianz GI) has committed £67.3 million (US$96 million) of index-linked debt on a tenor of 33 years, and UPP and Nottingham Trent University have agreed to provide the remaining £11.2 million (US$16 million) of subordinated debt and equity.

The residence comprises 911 study bedrooms, which includes 559 suite rooms grouped in 68 flats of 4 to 10 rooms. It has several facilities including a cafe, a gym and entertainment lounges. The Byron Residence of the Nottingham Trent University started its operation in 2013.

With over 700 employees, UPP has approximately 30,000 rooms under management or in construction through long term partnerships with 14 UK universities.

According to sources, Gabriel Behr, group finance director at UPP, said:

“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 at UPP, added: 

“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."

Last week, we reported that Allianz GI refinanced the Venice’s Passante di Mestre motorway, in Italy. More concretely, AllianzGI acquired a total of  US$455.6 million of class A1 bonds, which were part of an US$895.3 million deal in which other Allianz entities participated.