Campus Living Villages and Arlington Investors secure £210m bond financing to support student accommodation acquisition

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Campus Living Villages (CLV) and Arlington Investors have secured £210m of bond financing to support their purchase of eight student accommodation sites for approximately £245m from PwC as administrator of the former Opal portfolio.  The portfolio is located across London, Manchester, Liverpool, Leeds, Birmingham, Newport and Nottingham.

The 50 year funding is believed to be the longest maturity achieved for student accommodation and is the first listed unrated bond in the sector.  The bond was 75% index-linked and 25% fixed with a coupon of 2.116% for the indexed tranche and 5.117% for the fixed tranche.

TradeRisks acted as arranger and dealer of the bond financing which was listed and privately placed with investors avoiding the execution risk of a traditional syndicated process.  The structure illustrates the increasing flexibility now available from the public bond market.  The attractive financing reflects Campus Living Villages’ strong operational credentials, the portfolio effect of halls in variety of student locations, the freehold nature of the assets and the placement approach.

DWPF acted as Financial Adviser to CLV with Osborne Clarke, McGuire Woods and K&L Gates (legal), Grant Thornton (tax), Knight Frank and Savills also advising CLV and Arlington.

For further information please contact Ben Fry on 020 7382 0918 or benjaminfry@traderisks.com