Simmons & Simmons has acted on a significant student accommodation deal which will see the University of Hertfordshire add 3,000 high-specification units to its College Lane campus in Hatfield.

The scheme, valued at £190m, will allow for the construction of 2,500 new on-campus student accommodation units, in addition to refurbishing 500 existing units. The accommodation will be developed, maintained and operated as part of a 50-year agreement which was uniquely financed using a £145m index-linked senior secured unwrapped bond.
Simmons & Simmons advised RBC Europe Limited as bond arranger and Prudential Trustee Company Limited as security trustee and bond trustee in the deal.

Simon Kildahl, finance partner at Simmons & Simmons, said: "We are very pleased to have helped work on the financing for this scheme, which is not only a major project for the University, but also a significant development for the UK student accommodation market. Given the increased regulation and capital requirements for banks, the provision of 40 year bank debt is not at the present time a realistic option. It is pleasing that a solution was provided by accessing the capital markets on what is thought to be the first UK project bond to have been issued for some years."

In addition to the student accommodation, the University's scheme will provide new sports pitches, a campus gym, informal learning and social spaces and a new dedicated bus route. Bouygues (UK) Ltd. will oversee construction of buildings, with phase one of the scheme due to complete in September 2014 and the third and final phase in September 2016.

The Simmons & Simmons team acting for RBC Europe Limited as arranger was led by Finance partners Simon Kildahl and Charles Hawes. The team also comprised associates Robert Farrer-Brown, Nicholas Jones, Theodora James and Leon Yap. Simmons & Simmons Banking partner John Davies and associate Katie-Jane Newnham acted for the Prudential Trustee Company Limited as security trustee and bond trustee.

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