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LSE Student Accommodation gets £129m Injection

Posted by Aisling Murphy in ,

Image courtesy of Flickr, Creative Commons

Pension Insurance Corporation plc, a specialist UK insurer of defined benefit pension funds, has invested £129 million with the London School of Economics and Political Science (LSE) to fund the development of a 676-bed student residence in Southwark, London.

Located on Glengall Road, Southwark, the newly constructed accommodation will provide housing primarily for LSE's postgraduate student population.

The residence will consist of 15-storeys and will include communal spaces such as a gym, roof terraces, cinema, and courtyard gardens.

Rooms will be discounted in comparison to other LSE accommodation options. As well as this, over a third of the rooms will be part of the London Plan's affordable student housing scheme, which enables access to good quality housing for lower income students.

The accommodation, sponsored by DIF Capital Partners, is due to be completed in 2024.

The investment is a long-dated, inflation linked loan, maturing in 2069. PIC has stated that the investment is "tailored to match PIC's pension payments in years when public debt is scarce". The deal uses a deferred drawdown structure, with the £129 million funding provided through five tranches during the construction period.

LSE Director of Residential Services, Ian Spencer, said: "One of the priorities in LSE's 2030 strategy is to Develop the LSE for Everyone. For Residential Services this means guaranteeing an offer of accommodation to all first-year students. The Glengall Road development takes us a significant step towards that goal by providing 676 affordable rooms for our graduate students."

Thomas Foucoin, Debt Origination Manager at PIC, said: "The need for more quality, affordable student accommodation in London couldn't be greater. The LSE is a highly attractive institution for students from around the world and has ambitious plans for growth. We are delighted to support these plans by providing investment in much needed new halls of residence for postgraduate students. By investing in assets that serve the next generation, PIC can secure the pensions of its policyholders."