University Partnerships Programme (UPP) has successfully completed a £140.7 million (US$241 million) deal, establishing a long-term partnership, to redevelop the Garden Hall Residences at the University of London (UOL) in Bloomsbury, UK.

The investment will include £113.8 million of funding (bond debt) from Pension Insurance Corporation and £26.9 million of sub-debt and equity provided by UPP and its investors.

The 50-year deal, in partnership with the UOL, is a flagship project for UPP and one of the largest transactions completed in the capital to date.

The Garden Hall Residences in Cartwright Gardens is situated in Bloomsbury, a prime London location. The value of the construction contract - including the complete refurbishment of Hughes Parry Hall - will be completed by Brookfield Multiplex, and has a value of £70.3 million (US$120.5 million).

The project involves UPP designing, financing and operating new residential accommodation of 1,200 rooms at the UOL's sought after student accommodation in central London. The UOL will take a shareholding in the Project Company.

Leading architects tp bennett and Maccreanor Lavington have created high quality designs that reflect the halls' important position within the Bloomsbury Conservation Area and reflect the local heritage of the area. The scheme gained planning permission from Camden Borough Council in 2013 and construction will begin this summer and is due for completion in Autumn 2016.

Sean O'Shea, Chief Executive of UPP, stated:

This deal is the largest partnership transaction in London to date. Located at the heart of Bloomsbury, this exciting scheme will offer future generations of students facilities of the highest quality, at affordable rents.

Delphine Deasy, Investment Manager at Pension Insurance Corporation, comented:

We are very pleased to have been able to invest £114 million to allow the UOL, in partnership with UPP, to redevelop the Garden Halls student accommodation. In the right investment structure, student accommodation is a good investment for PIC, providing long-dated, secure cash flows to help us match our pension liabilities. With £3.7 billion of pension scheme liabilities insured by us last year and almost £2billion so far this year, we have a growing portfolio and appetite to invest in further opportunities of this nature.