CLV acquires Opal Group assets
c£245m finance raised
5th March 2014
DWPF secured £210m of bond financing to support the purchase by Campus Living Villages (CLV) and Arlington Investors of eight student accommodation sites for approximately £245m from PWC as administrator of the former Opal portfolio.
The portfolio is located across London, Manchester, Liverpool, Leeds, Birmingham, Newport and Nottingham. The 50 year funding is believed to be the longest maturity achieved for student accommodation and is the first listed unrated bond in the sector. The bond was 75% index-linked and 25% fixed with a coupon of 2.116% for the indexed tranche and 5.11% for the fixed tranche.
The bond financing which was listed and privately placed with investors avoiding the execution risk of a traditional syndicated process. The structure illustrates the increasing flexibility now available from the public bond market. The attractive financing reflects Campus Living Villages’ strong operational credentials, the portfolio effect of halls in variety of student locations, the freehold nature of the assets and the placement approach. TradeRisks acted as arranger and dealer of the Bond.
DWPF acted as Financial Adviser to Campus Living Villages and Arlington with TradeRisks as arranger and dealer of the Bond.