Pension Insurance Corporation (PIC) has invested £60.6m in a student accommodation project.
The deal takes its total investment in the University of Essex to more than £150m this year after backing a £98m refinancing earlier in the year.
The cash will fund the construction of a 643-bed property on the university’s Colchester campus.
PIC has invested more than £500m in student accommodation during the past three years as it looks for alternative cash-generating assets while gilt yields are low.
The £60.6m inflation-linked debt matures in 46 years.
PIC senior debt original manager Liz Cain said the deal is the result of relationships the organisation has built.
“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,” she added.
The University of Essex’s director of campus services, Chris Oldham, said the institution is committed to providing a first-class living and learning experience.
“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,” he added.
