Wragge Lawrence Graham & Co has advised Pension Insurance Corporation (PIC) on its £114 million investment in the University of London's flagship student accommodation project in central London.

PIC, a specialist provider of insurance solutions for defined benefit pension funds, has provided the multimillion-pound loan to finance the redevelopment of the Garden Halls Residences in Cartwright Gardens, Bloomsbury.

The highly complex financing deal includes an additional £27 million of sub-debt and equity from University Partnerships Programme (UPP), making it, at £140 million, London's largest partnership transaction in the student accommodation sector.

Wragge Lawrence Graham & Co's banking & finance specialist, partner Chris Brierley, led on the deal with assistance from real estate partner Colin Hurt, construction associate Gemma Whittaker and corporate solicitor Edd Hampson.

Chris Brierley said: "Insurers are picking up the slack in a market where it is no longer viable for banks to lend for long periods of time; they want to make investments which return a long-term, index-linked income. Our in-depth understanding of this landscape, combined with our extensive experience advising insurers on challenging project financings, proved crucial in securing this successful financial close for PIC."

Delphine Deasy, Investment Manager at PIC, said: "This deal is a good investment for PIC, providing long-dated, secure cash flows to help us match our pension liabilities and is part of PIC's infrastructure investment strategy.

"We have worked with Wragge Lawrence Graham & Co on various transactions and trust the team to deliver comprehensive commercial advice to achieve our goals."

Construction of the accommodation will begin this summer and is due to complete in autumn 2016. The project will ultimately deliver 1,200 rooms to the University of London, bringing high-quality student accommodation to a sought-after location.

Chris Brierley added: "Following George Osborne's announcement last year that the cap on the number of students universities can accept is to be removed, the number of overseas students in Britain is expected to increase and we anticipate corresponding growth in activity levels in the student accommodation sector. Our team is ideally placed to help investors capitalise on these opportunities."

Wragge Lawrence Graham & Co's Banking & Finance team advises banks, corporates, private equity companies and public bodies on a full range of domestic and cross-border instructions. Highlights include acting for Sanctuary Housing Association on a £300 million bonds issue, advising on the sale of Kennet Equipment Leasing Limited and advising PIC on the UK's largest ever solar bond deal.