Liberty Living secures £300m backing from banks

PRIVATE student accommodation provider Liberty Living has secured a finance package of £300m, provided jointly by HSBC and Royal  Bank  of Scotland (RBS).

HSBC’s part of the deal was managed by its Midlands corporate real estate team.

Liberty Living operates three  sites in Birmingham : Queen’s Hospital Close, Hunter Court on the Pershore Road and The Beeches on Elvetham Road.  The company also operates sites in Coventry and Stoke-on-Trent.

The finance package consists of a five-year term loan of £100m, a five year revolving credit facility of £100m and a US  private  placement of £100m. The new package has been used to refinance existing debt of £200m and provide £100 million for new acquisitions.

Liberty   Living   is   the   brand  of  the  Brandeaux  Student Accommodation  Fund  which  owns  and  manages  15,000  beds for university students  across  40  residences  in 17 UK cities and is the fourth-largest private  provider  of  UK  student  accommodation. 

The  company  generated revenues  of  £71.5 m  in 2011, producing operating profits of £39.6m.

Hugh   Taylor,  HSBC’s  regional  head  of  real  estate,  said: “Student accommodation  is  now an established asset class in its own right. Liberty Living  is  a  quality business, benefitting from an experienced management team,  low  gearing,  modern  residences in attractive locations and strong levels  of  demand  for its product.”