Addleshaw Goddard has advised UPP Group, the UK's largest provider of on-campus student accommodation, on its property-backed bond programme.

UPP raised an initial £382 million through the issuance of two tiers of bonds, a £309m 27 year fixed interest note with a 4.9% coupon and a £75m 34 year index linked bond. Both bonds will be secured against the rental revenue from its portfolio of student accommodation across six universities which, in total, generates an annual rent of £133 million.

The proceeds of the scheme will be used by UPP to refinance its existing borrowing as well as fund future building projects.

The Addleshaw Goddard team was led by head of real estate Adrian Collins, managing associate Kim Fowler, associates Rose-Anna Daukes and Marc Field and experts from tax, banking, real estate, derivatives and corporate finance.

Adrian Collins said: "The bond programme marks another major milestone for UPP and we are pleased that we were able to support the company with a full range of specialist legal and corporate advice.  In this funding market, the bond programme provides a great platform for the business to develop more partnerships with UK higher education institutions."

This is the third major transaction Addleshaw Goddard has completed in the last 12 months with UPP which has been a client of the firm for well over a decade. In December 2011 the firm advised UPP on its project with the University of Reading which was the single largest student accommodation project to be completed to date. The transaction had a capital value in excess of£250 million. In addition, the firm advised on the sale of the UPP Group from Barclays Infrastructure Funds (BIF)  to the Dutch  PGGM Infrastructure Fund 2010 and Argyle Luxco 2 Sarl.

Addleshaw Goddard's Real Estate team comprises more than 21 partners and nearly 70 other fee earners across the firm's six offices in London, Leeds, Manchester, Singapore, Dubai and Oman.

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