PIC invests £129m in new student accomodation

Written by Adam Cadle

17/01/2022

PIC has invested £129m with the London School of Economics and Political Science (LSE) to fund the development of a 676-bed student residence in Southwark, London.

The newly constructed student accommodation will be located on Glengall Road, Southwark, and provide additional housing primarily for postgraduate students of the LSE. It will comprise a 15-storey hall of residence, as well as communal spaces, a gym, three roof terraces, a cinema room and two courtyard gardens.

The transaction consists of a long-dated, inflation linked loan, maturing in 2069, and the investment is tailored to match PIC’s pension payments in years when public debt is scarce. The deal uses a deferred drawdown structure, with the £129m funding provided through five tranches during the construction period.

Thomas Foucoin, debt origination manager at PIC, said: “The need for more quality, affordable student accommodation in London couldn’t be greater. The LSE is a highly attractive institution for students from around the world and has ambitious plans for growth. We are delighted to support these plans by providing investment in much needed new halls of residence for postgraduate students. By investing in assets that serve the next generation, PIC can secure the pensions of its policyholders.”

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