Kingston Student Living (KSL) has successfully achieved Financial Close for student accommodation project for Kingston University in southwest London. KSL comprises Equitix and ENGIE. Kingston University is also an investor in the consortium.

The project will see the refurbishment of 1,216 existing rooms and the addition of 117 new rooms on the University’s Kingston Hill and Seething Wells sites. With innovative architecture and careful planning, the project is set to transform the overall student experience for residents, replacing the older stock with modern, fit-for-purpose accommodation. The project also involves the sensitive renovation of five heritage buildings at the Seething Wells site. 

Architects TP Bennett have developed pioneering design solutions, creating an extra floor on many of the accommodation blocks at Seething Wells.  In addition the buildings will have new extensions, housing modern kitchen common rooms that will serve bedroom clusters ranging in size from 6 to 12 spaces.

KSL is responsible for all aspects of the development from securing the project financing to construction, ongoing management and maintenance of the facilities.

ENGIE will provide facilities management services to both sites for a minimum of 40 years. The project benefits from a nomination agreement with the university and the rooms will be marketed and allocated by Kingston University in parallel with its own stock.

The senior financing is in the form of privately placed bonds (50% fixed-rate, 50% index-linked) wrapped by Assured Guaranty. The bonds have an underlying rating of BBB- but are rated AA with a stable outlook with the wrap from Assured Guaranty.

Construction will commence in July 2020 and is due to complete in 2022.

DWPF acted as financial advisor to the consortium from the initial competitive bidding phase – where we supported in identifying the optimum financial structure and led the financial aspects of the bid documentation – through to working closely with KSL and its advisers in the preferred bidder phase to secure financing and achieve financial close.