Student property firm University Partnerships Programme (UPP) has inked a £133 million deal with the University of Exeter to design, finance and operate accommodation at three locations on the university’s campus.

Barclays Commercial Bank and the Royal Bank of Scotland contributed £112 million of debt to the scheme, which forms part of the university’s £450 million strategic investment programme.

The value of the construction contract is £77 million and construction will take place over three years from financial close, with the final phase due for completion in 2012-13. 

Jeremy Lindley, director of corporate services at the University of Exeter, said:

“The deal with UPP is critical to the University's future development because we require extra student accommodation if we are to expand and develop in the years ahead. 

“UPP are providing very high quality units, which is what the market wants, so this development will help to enhance the offer we make to students. The work also complements other developments which are underway to expand our Bioscience and Business schools and provide a new student services building in the centre of our Streatham Campus.”

Sean O’Shea, chief executive of UPP, added: “The scale of this transaction with the University of Exeter shows that the higher education sector is bucking the recession trend and that university accommodation is an increasingly attractive and stable investment opportunity. 

“We work in partnership with universities to provide high-quality accommodation, facilities and long-term financial solutions and, despite the credit crunch, we are finding the financial community has a growing appetite for this kind of investment opportunity, delivered through UPP’s unique model, and we are securing record levels of private sector funding for our university partners.”