The Pension Insurance Corporation has invested £60.6m in a student accommodation project with the University of Essex.

PIC’s latest deal takes its total investment in the University’s campus to over £150m this year. The transaction is an inflation-linked debt structure and amortising profile maturing in 2063, which is understood to be a good match for PIC’s pension liabilities.

Secured bonds in the transaction were rated AA by S&P, benefiting from a guarantee by Assured Guaranty.

The additional funds will be used towards the construction of a 643 bed student housing development on the University’s Colchester campus.

PIC has invested around £2.5bn in direct and bilateral deals, including with providers of student accommodation, universities, and renewables and over £700m in social and affordable housing across the UK to date.

In total, PIC has invested around £500m in the student accomodation sector over the past three years.

PIC senior debt origination manager Liz Cain said: “This latest investment by PIC in student accommodation builds on an existing relationship with the various parties following an investment of £98m earlier this year to allow refinancing of an existing accommodation block on campus. PIC is a buy and hold investor and these projects work well as there is a long term nominations agreement in place with the university which links to our long term partnership approach. We are delighted to have been able to complete this transaction with the University.”

University of Essex’s Chris Oldham commented: “We are committed to providing a first-class living and learning experience for the growing number of students who choose to study at the University of Essex. Providing high-quality, purpose-built on-campus accommodation is at the heart of that commitment and we’re pleased this latest development has received financial backing.”

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