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Work Begins on a £97m Student Project in Hull

Posted by Richard Ward in ,

Image courtesy of Flickr, Creative Commons

The construction company Vinci has begun work on a £97 million student accommodation project for the University of Hull.

Construction work begun after funding for the project was finalised, with University Partnerships Programme (UPP) closing a £155m deal with Hull. Once complete the development will consist of 1,750 rooms.

The investment consists of £127.6m of 40-year index linked bonds issued by Allianz Global Investors (AGI) and £27.4m of unsecured debt and equity provided by a combination of UPP Group, its shareholders and the university.

The student accommodation development will consist of 1,462 new single room and one bedroom apartments, split across nine separate blocks. As part of the project UPP is also refurbishing 288 existing rooms located at the University's Taylor Court.

In addition to the new student housing, UPP will build an urban green and avenue, which will be home to new amenities such as a cafe, convenience store, laundry facilities, and formal and informal outdoor areas.

The first phase of the project will result in 478 new rooms being built in time for the 2018-19 academic year, with the remaining 984 bedrooms coming online the following year.

Commenting on the deal, Adrian Jones, director of infrastructure debt at AGI, said: "That this transaction is our third investment on behalf of our clients into UK higher education in three years, reflects just how much the UK infrastructure debt market has matured."

Mr Jones, added: "We continue to see strong demand from our clients to invest in infrastructure assets that as well as offering them the long-term, stable cash flows they need also support regional economic competitiveness, providing an attractive investment opportunity as well as supporting our quality of life."