Arlington Investors borrows £68.8m from capital market investors to support student accommodation acquisitions
The transaction sees Arlington acquire a portfolio comprising 951 beds in Leeds and London from Rockspring taking Arlington’s student accommodation holdings to more than 7,800 beds and a total investment of over £500 million.
The assets combine a mixture of direct let and university let student accommodation with the two Leeds asset and London asset being financed independently. The assets are respectively managed by Mansion Group and Campus Living Villages.
The 42-year bond supporting the London acquisition and the 42-year loan supporting the Leeds acquisition follow on from Arlington’s debut £210m issuance in February 2014, £50.2m issuance in September 2015 and £94m issuance in March 2016, all also arranged by TradeRisks and to support further acquisitions within the student accommodation sector.
Each financing comprises an index-linked and a fixed rate element and shows the continued appetite of investors for good assets despite June’s Brexit vote. Funding was provided by investors who require assets for liability matching.
TradeRisks acted as arranger and dealer for the London bond issue and was advised by Morgan Lewis LLP.
TradeRisks also arranged the Leeds loan with Osborne Clarke & McGuire Woods (legal) and DWPF (financial) also advising Arlington.
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