Pension Insurance Corporation (PIC) has bolstered its infrastructure investment portfolio after providing £114m of funding for the redevelopment of a student halls of residence in London.
PIC is the sole investor in a loan which will provide 1,200 rooms at the Garden Halls student accommodation in Bloomsbury to the Colleges of University of London. In return PIC will receive a stream of long-dated cashflows.
The deal, run by UK campus-based student accommodation provider University Partnerships Programme, forms part of PIC’s infrastructure investment strategy which targets long-term, secure debt investments to match the fund’s long-dated liability profile.
PIC investment manager Delphine Deasy said: “In the right investment structure, student accommodation is a good investment for PIC, providing long-dated, secure cash flows to help us match our pension liabilities. With £3.7bn of pension scheme liabilities insured by us last year and almost £2bn so far this year, we have a growing portfolio and appetite to invest in further opportunities of this nature.”
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