The University of Hertfordshire and Uliving (the consortium comprising Bouygues Development and not-for- profit housing association Derwent Living) have announced they have reached, together with Meridiam Infrastructure and Legal & General, financial close on the £190 million, off balance sheet single asset, demand risk project for the University of Hertfordshire to deliver its new student accommodation scheme. Today’s release follows the announcement in July 2012 that the consortium had been appointed preferred bidder.

Located at the College Lane campus in Hatfield, the project is part of the University’s vision to enhance students’ lives by creating a fully inclusive living and learning campus environment.

Under the scheme, Uliving will be responsible for the design, build, finance and operation of new student accommodation totalling over 3,000 bedrooms, and the associated social spaces and infrastructure works.

This innovative project bond financing is the first of its kind to be implemented in Europe and gives Uliving access to particularly long term financing provided by institutional investors as an alternative to traditional shorter term banking solutions. Equity partners for the scheme are Meridiam Infrastructure Finance II (55%), Bouygues Development (13.3%), Centro Place Investments, a subsidiary of Derwent Living, (13.3%), University of Hertfordshire (13.3%) and Legal and General Assurance Society (5%).

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Bouygues Development will manage the development and construction management of the project. Derwent Living, again as part of the Uliving consortium, will be responsible for the operation and facilities management elements of the contract for a total period of 50 years. The operation and facility management tasks will begin immediately to cover the existing student accommodation.

Construction, which involves the development of over 2500 new bedrooms before September 2016, will be undertaken by Bouygues UK under a contract worth ca. £117 million. Derwent Living’s provision of asset management and facilities management services for the new and existing units will be worth more than £200 million over the lifetime of the contract. Derwent Living will also refurbish the existing 500 bedrooms over the next three years

The scheme will be delivered in three phases with the first phase due to commence immediately and is scheduled to be completed in September 2014 in readiness for the start of the new 2014/2015 academic year.

Each subsequent phase will be completed in time for the start of the following academic year with the entire scheme being completed in September 2016. Construction works will run alongside the existing accommodation units, which will be transferred to Uliving immediately and be in full operation throughout.

In addition to the main construction and refurbishment works, the scheme includes new sports pitches, a campus gym, informal learning and social spaces and a new dedicated bus route.

(CD/IT)