Pension Funds Insider

Pension Funds Insider brings the latest pensions news and industry insights; from investment and governance updates to new mandate appointments and pensions regulatory information.

Allianz Global invests in refinancing of student accommodation

11 December 2014

Image for Allianz Global invests in refinancing of student accommodation

Diversified global investment manager, Allianz Global Investors (AllianzGI), has invested £119.7 million in the refinancing of the student accommodation project at the University of Exeter.

The project is the first investment from the company's UK Infrastructure Debt Fund, launched in June this year.

It is also the first transaction that AllianzGI has undertaken on behalf of its clients in the student accommodation sector.

Paul David, director of infrastructure debt at AllianzGI, said: "We're pleased to have completed the first investment from our UK Infrastructure Debt Fund in what is, for us, a new and exciting sector.

"There is a significant undersupply of student accommodation in the UK and we are delighted to be working with UPP and the University of Exeter to help address this issue."

He added that the investment illustrates the "growing maturity, complexity and diversity" of AllianzGI's infrastructure debt business in the UK, as well as demonstrating that the company is delivering on its commitment to put money to work in critical infrastructure across the country in a range of sectors.

The Exeter transaction follows the recent announcement from AllianzGI that it aims to invest upwards of GBP 3 billion into UK infrastructure in the next three to five years.

Over the last year, AllianzGI has developed a significant portfolio of UK infrastructure assets, which as well as university accommodation, includes greenfield and brownfield roads in Scotland and Northern Ireland.

Phil Dawes, Head of UK Institutional at AllianzGI, said: "AllianzGI continues to lead the UK infrastructure debt market in terms of both origination and execution.

"With a blend of utilities, brownfield and greenfield transactions our clients have seen their commitments turn into real assets across the country, which in turn will have a tangible impact on both their portfolios and economic growth."

AllianzGI announced the launch of its UK Infrastructure Debt Fund on 30 June 2014.

In addition to Exeter University, the Fund will invest in other long-term, investment grade, core UK infrastructure assets, including roads, schools and hospitals.

First published 11.12.2014