A consortium comprised of international support services and construction group Interserve, fund and asset management firm Equitix and on-campus student accommodation developer and operator, Campus Living Villages UK, has reached financial close on a GBP105 million (US$134.0 million) project for Durham University, located in the north of England.
The project involves the design, construction, financing and operation of two new college facilities for student residence under a 51-year concession contract. The consortium announced that it was preferred bidder for the project in October 2017, and expects to complete construction in 2020.
To finance the project, the consortium has issued approximately GBP90 million (US$114.9 million) of bonds as a private placement into the UK market. The 46-year inflation-linked bonds have been rated AA by S&P Global Ratings. Principal and interest payments are guaranteed by Assured Guaranty.