Student housing provider UPP Group has raised £382m in bonds issues to refinance existing debt and fund future building projects.
The group is the UK’s largest on-campus student accommodation provider, and was advised on the deal by Addleshaw Goddard’s real estate team.
The bonds – most of which were issued with a 27-year fixed interest rate - are to be backed by rental revenue from UPP’s student accommodation portfolio.
Across six universities, this amounts to an annual rental income of £133m.
Addleshaw Goddard head of real estate Adrian Collins said the bond programme marked “another major milestone for UPP and we are pleased that we were able to support the company with a full range of specialist legal and corporate advice.”
“In this funding market, the bond programme provides a great platform for the business to develop more partnerships with UK higher education institutions.”
Addleshaw Goddard has now completed three major transactions with UPP in the past 12 months, including the £250m University of Reading project.