PIC invests £37 million in University of Exeter

London, 18 July 2018 – Pension Insurance Corporation plc (“PIC”), a specialist insurer of defined benefit pension funds, has completed a £37 million investment with leading student accommodation provider, University Partnerships Programme (“UPP”). The loan will fund UPP’s development of 382 new student bedrooms for the University of Exeter. This latest transaction marks the fifth time the two companies have worked together, building on their long-term partnership of funding and developing student accommodation.

UPP is the leading provider of on-campus, student accommodation infrastructure and support services in the UK. Previous investments with them have included accommodation at Swansea University, the University of London and at the University of Kent. In total, PIC’s investments with UPP have helped fund the development of more than 4,500 student beds across the country.

Key points of the transaction:

• Long-dated, inflation linked loan, maturing in 2065
• Regular, stable, long-term cashflows, which are a good match for PIC’s pension liabilities
• Delayed drawdown structure, to match the construction programme and reduce interest costs for the borrower
• Loan used to fund two on-campus student accommodation buildings - Spretonway and Moberly - at the University of Exeter

The University of Exeter is one of the UK’s top universities, combining world-leading research with very high levels of student satisfaction. It is one of the UK’s most popular and successful universities and is a member of the highly reputable Russell Group. It has campuses in Exeter, Devon and near Falmouth in Cornwall.

Sean O’Shea, Group Chief Executive Officer at UPP, said: “We are delighted to have secured this latest round of funding with PIC, whose flexible and intuitive approach to financing student accommodation has resulted in us working together numerous times since our first transaction in 2014. This latest transaction demonstrates our continued support of the University of Exeter’s Capital Strategy and to providing the very best student experience.”

Elizabeth Cain, Senior Debt Origination Manager at Pension Insurance Corporation, said: “We are delighted to again be working with one of our long-standing investment partners UPP, in this latest round of funding for student accommodation, this time at the highly regarded University of Exeter. The quality and structure of the investment is a good match for PIC’s long-term pension liabilities, and backs the pensions of our policyholders.”

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Notes to Editors:

For further information please contact:

Pension Insurance Corporation

Jeremy Apfel
+44 (0)20 7105 2140
apfel@pensioncorporation.com

Teneo Blue Rubicon

Anthony Silverman
+44 (0)20 3757 9231
Anthony.Silverman@teneostrategy.com

About Pension Insurance Corporation
The purpose of Pension Insurance Corporation plc (“PIC”) is to pay the pensions of its policyholders. PIC provides secure and stable retirement incomes through leading customer service, comprehensive risk management and excellence in asset and liability management. At year-end 2017, PIC had insured 151,600 pension scheme members and had £25.7 billion in financial investments, accumulated through the provision of tailored pension insurance buyouts and buy-ins to the trustees and sponsors of U.K. defined benefit pension schemes. Clients include FTSE 100 companies, multinationals and the public sector. PIC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and Prudential Regulation Authority (FRN 454345). For further information please visit www.pensioncorporation.com.

About UPP

University Partnerships Programme (UPP) is the leading provider of on-campus student accommodation infrastructure and support services in the UK. We have around 37,000 rooms under management, through long-term partnerships with 16 leading UK universities. With over 800 employees, we work to deliver the very best student experiences, together with great universities.

We offer bespoke partnerships of typically 40 to 50 years, which enable universities to make the most effective use of their assets, free up resources and improve services available to students. We design and develop high quality, affordable student accommodation on campus. Our innovative approach means our interests are aligned with those of each university partner.

Founded in 1998, we have since procured in excess of £2.5 billion of investment in universities across the UK. We have established a long-term growth strategy to ensure we remain well positioned to meet the growing demand for investment within the UK’s higher education sector, whilst at the same time helping our partners achieve their long-term ambitions. In 2013, we outlined a five-year growth plan in which we aim to invest a further £1 billion in delivering the very best student experiences, as well as expand our portfolio to more than 40,000 rooms.

In 2013, UPP made its debut £382.1 million public bond issuance. With a multicurrency programme size of £5 billion, the issuance was the first of its kind within the sector and illustrates our ongoing ambition to bring long-term institutional investment to higher education in the UK. In 2014, UPP launched a further tranche of £149.7 million index-linked, senior secured notes, under its investment grade programme. In March 2018 the Group converted to a Real Estate Investment Trust, and in doing so listed on The International Stock Exchange.

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