UPP Group (UPP), a provider of on-campus student accommodation infrastructure and support services in the United Kingdom, has converted to a U.K. REIT, effective March 1, 2018.
The move represents the next step in the long-term strategy of UPP to achieve controlled value accretive growth, enhancing resilience and improving the quality of returns to shareholders. The key elements of this strategy have included a clear focus on its partnership model; strengthening the Group structure to ensure it is effective at building, operating and managing its assets over the life of each concession; placing its entire portfolio on cost-effective, long-term borrowing, effectively removing all refinancing risk across the portfolio; and establishing its Irish Stock Exchange listed £5 billion ($7 billion) bond program (UPP Bond 1 Issuer PLC), purposely designed to allow for new assets to be included, at the point of becoming operational.
The successful completion of this project strengthens the ability of UPP to grow the portfolio and invest in building and operating accommodation that enhances the student experience. The new five-year business plan targets continuing growth with new and existing partners in coming years located at the heart of campus.
