Centrus arranges £100m funding for a student accommodation PPP project for LSE

Centrus is pleased to announce that we have arranged senior debt funding for a DIF Capital Partners‘ (“DIF”) student accommodation project for the London School of Economics & Political Science (“LSE”). The project is structured as a PPP with LSE holding a 19.9% stake and DIF holding the majority 80.1% stake. Over £100m of long-dated funding has been provided by Pension Insurance Corporation, the UK-based specialist insurer.

The project is a greenfield PPP that includes the design, build, financing, operations and maintenance of new student accommodation facilities that comprise 676 beds and associated communal spaces and services. Design, build, operations and maintenance will be completed by Engie Regeneration.

“DIF is excited to be growing its portfolio in the student accommodation sector. We look forward to partnering with a world-class university and to support it with its student accommodation delivery.”

Gijs Voskuyl, Partner and Head of Investments for the DIF V and VI strategy, says:

“One of the priorities in LSE’s 2030 strategy is to Develop the LSE for Everyone. For Residential Services this means guaranteeing an offer of accommodation to all first-year students. The Glengall Rd development takes us a significant step towards that goal by providing 676 affordable rooms for our graduate students.”

Ian Spencer, LSE Director of Residential Services:

LSE was advised by QMPF (financial), Pinsent Masons (legal), and Student First Group (technical). DIF was advised by Centrus (debt arranger), DWPF (financial), Mills & Reeve (legal), Grant Thornton (tax & accounting), Gleeds (technical) and JLL (commercial).

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