Arlington Investors borrow £75.2m from capital market investors to support student accommodation acquisitions
The transaction sees Arlington acquire a portfolio comprising 1,013 beds in Coventry and Nottingham from Study Inn taking Arlington’s student accommodation holdings to more than 10,000 beds and a total investment value of over £750 million.
The assets are predominantly direct let with some short term university nominations in place up to 2020. There are two further Study Inn assets in Cambridge and Sheffield which have been financed independently by Arlington. All the assets will continue to be managed by Study Inn.
The 38-year fully amortising bonds will support the acquisition of Study Inn’s Coventry and Nottingham assets and follows on from Arlington’s debut £210m issuance in February 2014, £50.2m issuance in September 2015, £94m issuance in March 2016 and £68.8m issuance in August 2016, all also arranged by TradeRisks.
The financing comprises an index-linked (73%) and a fixed rate (27%) element and was provided by investors who require assets for liability matching.
TradeRisks acted as arranger and dealer for the bond issuance and was advised by Osborne Clarke LLP. McGuire Woods (legal) and DWPF (financial) advised Arlington.
Sean McKeown, Managing Director at Arlington said, “We are delighted to acquire the Study Inn portfolio and to continue to work with them to deliver their operating platform. This was an ideal transaction to take us over 10,000 beds with it being funded by long term institutional debt that continues to support Arlington in its growth”.
John Coleman, Director at TradeRisks said, “We are delighted to have supported Arlington in this acquisition and in its continued growth in the student accommodation sector. This transaction highlights the strong appetite from institutional investors for high quality student accommodation assets without a direct university link”.
Omar Al-Nuaimi, Osborne Clarke Finance Partner commented, “Increasing student numbers, coupled with the demand for more deluxe living spaces, means the student accommodation sector has performed well and it continues to represent an exciting opportunity for investors. It has been fantastic to work with TradeRisks and Arlington on implementing this key strategic acquisition and the debt financing for it”.
For further information please contact John Coleman on 020 7382 0990 or johncoleman@traderisks.com.