University Partnerships Programme (UPP), a provider of on-campus residential and academic accommodation infrastructure, has reached financial close on a deal worth £43 million to buy the freehold of 411 rooms at Bay Campus, where it will also deliver a full FM service.
The deal, with St Modwen Developments, Swansea University and Swan Global LLP, takes the number of rooms operated by UPP on the Bay Campus to 2,432 and boosts UPP's portfolio of more than 35,000 rooms in operation or under construction through long-term partnerships with 15 UK universities.
It comes on the back of a £98 million transaction between St Modwen Developments, Swansea University and UPP in February 2018, when UPP acquired two companies from St Modwen Properties to operate 2,021 study bedrooms at the Bay Campus, as well as acquiring a freehold property interest in other accommodation.
This latest purchase includes £38.7 million of index-linked debt financing from Aberdeen Standard Investments (ASI), with a debt tenor of about 45 years. UPP Group Holdings and its shareholders will invest £4.7 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 per cent of the rental and utilities costs on the 411 rooms for the first 10 years.
UPP has been delivering FM services to the 411-room scheme for St Modwen through its subsidiary, UPP Residential Services, since the college opened in February 2019.