Pension Insurance Corporation (PIC) has disclosed investing £129m (€150m) to fund the development of a 676-bed student residence in Southwark, London.

Last month, DIF Capital Partners announced it had reached a financial close on a student-accommodation public-private-partnership (PPP) project with the London School of Economics and Political Science (LSE).

The DIF Infrastructure V fund will own 80.1% of the project and the university will retain 19.9%.

At the time, DIF said long-dated funding had been provided by UK specialist insurer Pension Insurance Corporation.

The insurer of defined benefit pension funds said today it is investing £129m to fund the Glengall Road project due to be completed in 2024.

The new accommodation 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.

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.”

Gijs Voskuyl, partner and head of investments for DIF Capital Partners, said: “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.”

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