TradeRisks arranges £159m guaranteed financing for new student accommodation at University of York
The funding will finance the construction of two new student accommodation colleges on campus at the University of York, providing 1,480 new bed spaces for undergraduate and post graduate students.
The 45-year RPI linked financing has a long term issue credit rating of AA by S&P Global Ratings, benefiting from a guarantee by Assured Guaranty (Europe) plc and its affiliate Assured Guaranty Municipal Corp., and was privately placed by TradeRisks with a single investor. The project was structured to achieve an investment grade S&P Underlying Rating. The pricing on 6 December 2019 took advantage of negative long-term index-linked gilt rates.
Graham Construction will build the new accommodation in two phases over three years and Derwent Facilities Management will maintain and operate the accommodation over the project term. Equitix is the sponsor of the project company.
Kyle Rosevear, Director at TradeRisks, said: "We are delighted to have supported Equitix and the University of York in this financing, which will help the University to deliver its estate masterplan. This transaction highlights the advantageous financing conditions for student accommodation projects in the low rate environment.”
TradeRisks acted for the sponsor as the lead manager. The advisors to Assured Guaranty were CMS (legal advisor), AECOM (technical advisor), Cushman & Wakefield (demand advisor) and Marsh (insurance advisor).
For further information please contact Kyle Rosevear on 020 7382 0913 kylerosevear@traderisks.com or Michael Woodman on 020 7382 0995 michaelwoodman@traderisks.com.