A joint venture between Arlington and Campus Living Villages have acquired two portfolios of seven assets from Spectrum Housing Association and Sanctuary Housing Association, totalling 1,450 beds across Birmingham, Cheltenham, Gloucester and Exeter. A development site with consent for the delivery of a 492-bed development is also included as part of the acquisition, with completion expected for the start of the 2018/2019 academic year. This marks the first capital markets financing of a student accommodation portfolio with mainly direct let properties and a significant element of construction.
Funding for this acquisition was raised by an issue of £94 million of public bonds, arranged by TradeRisks. The bonds were split 59% index-linked and 41% fixed-rate, and structured with deferred drawdowns to match construction milestone payments.
On behalf of Arlington Investors, Operis was pleased to undertake an audit of the financial model, which included a full review of the model’s tax and accounting assumptions.