Ashurst advised HM Treasury in relation to its guarantee of bonds issued to fund a student accommodation project at the University of Gloucestershire's Pittville campus, Pittville Student Village, in Cheltenham.
It is the first time that the HM Treasury guarantee has been given to a privately-financed university accommodation project. The project involves the construction of 577 new student rooms and the refurbishment of the existing media centre including a gym, dining hall, students' union office and over 1,000 square metres of office space for university. Work is expected to be completed in time for the start of the 2017/18 academic year.
The sponsors are Uliving (a consortium comprised of Bouygues Development and not-for-profit housing association Derwent Living) and Equitix. The University also has an equity stake. Bouygues Development will carry out the new build works. Derwent Living will refurbish the existing rooms and will maintain all of the rooms over the project term.
The guarantee is provided under HM Treasury's UK Guarantee Scheme for infrastructure projects and the bonds will be listed on the Irish Stock Exchange.
Ashurst also acted for HSBC Trustee Company (UK) Ltd. as security trustee, the bond trustee and Mitsubishi UFJ Securities International plc as bond arranger.
The Ashurst team was led by infrastructure partner Philip Vernon and finance partners Derwin Jenkinson and Anna Delgado, assisted by counsel David Cave, Jonathan Hoare and Malcolm Charles, senior associates Alex Biles, Jonathan Turner and Scott Chatterton and associates Alison Thomson and Louise Browning.
Commenting on the deal, Philip Vernon, said:
"We are delighted to advise HM Treasury on this latest implementation of the UK Guarantee Scheme. This follows on from a series of projects using the scheme on which Ashurst has acted, including Ineos Grangemouth, Speyside CHP Plant and Mersey Gateway Bridge. Ashurst continues to play an instrumental role at the forefront of the scheme, which supports financing of key infrastructure projects."
