University Partnerships Programme (UPP), the UK’s leading provider of on-campus residential and academic accommodation infrastructure, has successfully reached financial close on a deal worth GBP 43 million (US$ 55.64 million) with St Modwen Developments, Swansea University and Swan Global LLP for the acquisition of the freehold interest of 411 rooms at Bay Campus, where UPP will deliver a full facilities management service.

The deal takes the number of rooms operated by UPP on the Bay Campus to 2,432 and boosts UPP’s portfolio of over 35,000 rooms in operation or under construction through long-term partnerships with 15 leading UK universities. UPP has been delivering facilities management services to the 411-room scheme for St. Modwen through its subsidiary, UPP Residential Services Limited, since the college opened in February 2019.

It comes on the back of a c. GBP 98 million (US$ 126.65 million) transaction between St Modwen Developments, Swansea University and UPP in February 2018, where UPP acquired two companies from St Modwen Properties PLC to operate 2,021 study bedrooms on the University’s Bay Campus, as well as acquiring a freehold property interest in further accommodation.

This latest acquisition includes GBP 38.7 million (US$ 50.01 million) of index-linked debt financing from Aberdeen Standard Investments (ASI), with a debt tenor of circa 45 years. UPP Group Holdings Limited and its Shareholders will invest GBP 4.7 million (US$ 6.07 million) of subordinated debt and equity.

Swan Global Education LLP is a joint venture between Swansea University and Navitas, an international pathway course provider, which has underwritten 100% of the rental and utilities costs on the 411 rooms for the first ten years. Navitas will source international students to undertake pathway courses of varying lengths at the purpose-built college facility on the Bay Campus and residential accommodation will be provided via the 411 student residences.  Upon conclusion of the initial 10-year agreement, a further arrangement with Navitas could be negotiated – otherwise the accommodation is set to revert to a traditional offering to higher education students through the University.