03 March 2015

LetterOne Treasury Services invests £680 million in UK student accommodation

Investment firm, LetterOne Treasury Services SA (“LTS”), announces that it has completed three transactions acquiring ten student accommodation properties with over 3,300 beds.

3 MARCH 2015 - Investment firm, LetterOne Treasury Services SA (“LTS”), announces that it has completed three transactions acquiring ten student accommodation properties with over 3,300 beds. Six of the properties are in London with the remaining four across the UK. The total investment amounts to £680 Million.

In the first transaction, LTS has acquired Pure Student Living from The Carlyle Group. Pure Student Living comprises 2,170 rooms across five prime central London sites.  Four of the assets, located at Highbury, Hammersmith, Bankside and City, are fully operational. The fifth facility, at Whitechapel, will deliver a further 417 rooms when it completes in August 2015.

The transaction has been structured to complete in two phases. The first phase comprises the acquisition of the four operational assets, with the deal fully completing when Pure Whitechapel is delivered in summer 2015.

In the second transaction, LTS has acquired Paris Gardens, a student residence in Southwark (London) with 253 beds from McLaren Property and Apache Capital Partners.

In the third transaction, LTS has committed to a forward purchase of four buildings located in Bath, York, Edinburgh and Brighton with 839 beds in total from McLaren Property. These properties are still under construction, with three out of four expected to be operational for the next academic year and one for the year after.

LetterOne Treasury Services manages the liquidity and financial investments of the LetterOne Group and, as at 31 December 2014, held net assets in excess of $13 billion. The company has a broad and global investment mandate and manages funds internally as well as through third party fund managers. These acquisitions represent the company’s first investments in the student accommodation sector. The company expects to make further acquisitions in the sector in the future.

McLaren Property was advised by Tudor Toone.

Commenting on the transactions, Nitin Bhandari, Head of Principal Investments at LetterOne Treasury Services LLP, said:

“We believe the market for student accommodation in the UK currently exhibits attractive underlying dynamics, with continuously growing numbers of domestic and overseas students enrolled in UK universities competing for limited supply of suitable accommodation. This provides a favourable backdrop for sustained long-term value creation. We look forward to working with our property manager, CRM Students, to provide our customers – the students and universities – with high standards of service.”

Yves leysen, Chief Investment Officer of LetterOne Treasury Services LLP, commented:

“These are long term high quality investments which we believe will provide stable, inflation protected returns in a low interest rate environment.  We are very pleased with these acquisitions and we look forward to increasing our exposure to this sector over time. The strong London presence and national footprint that these acquisitions allow us make them a natural fit for our strategy of becoming one of the leading owners and providers of student accommodation in the UK.”

For further information contact Stuart Bruseth: sbruseth@letterone.com

About LetterOne

LetterOne is a Luxembourg based holding company focused on the oil and gas and telecommunications sectors through its L1Energy and LetterOne Telecom subsidiaries, but with an unrestricted mandate to invest in other areas.  LetterOne Treasury Services SA is the financial investment arm of LetterOne and aims to generate shareholder value through a portfolio of financial investments in public and private equity, real estate, foreign exchange, credit and direct lending.

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