UPP agrees EUR 178m dorms deal with Exeter University

Specialist student accommodation provider University Partnerships Programme (UPP) has struck a deal worth £150m (EUR 178 mln) with Exeter University in the UK.

Under the deal, UPP will take over the management of three student housing sites, which together provide almost 1,000 beds, and redevelop the properties. UPP will also build new student rooms on the University's Streatham Campus.

The university said UPP was selected from a list of five bidders. It hopes to secure planning permission for the new developments in March 2009 and to sign the final agreement with UPP in July 2009.

The initiative is part of a £450 mln investment programme at Exeter University, which includes a £48 mln re-development of the Streatham Campus, a £25 mln investment in the business school and £18 mln for new biosciences facilities. King Sturge acted on behalf of the university during the deal. Michelmores provided legal advice and Quayle Munro acted as the financial adviser.

The transaction is the third multi-million pound property deal to be completed by King Sturge's 15-strong student housing team in recent months, having worked on fund manager Liberty Living's £152 mln acquisition of over 3,000 student properties from Unite Group. King Sturge also acted for City University in London, in a £39 mln deal which saw Liberty Living acquiring over 500 student beds.

Philip Hillman, head of the King Sturge Higher Education team, said: 'The agreement between the University of Exeter and UPP reflects the underlying strength of the student housing market. The sector continues to outperform other commercial sectors with strong rental growth and high occupancy levels.'