Global law firm Ashurst has advised pensions insurer Rothesay on a significant £400 million eight-year investment facility for the Unite UK Student Accommodation Fund (USAF). The transaction supports the refinancing of a portfolio of 23 purpose-built student accommodation (PBSA) assets spread across 15 UK cities. These assets, secured against the facility, are owned by USAF and operated and managed by the Unite Group, a major player in the UK PBSA market with approximately 68,000 bedrooms across 153 properties. Established in 2006, USAF stands as the largest specialist student accommodation fund in the UK.
The Ashurst team, led by real estate finance partner Stuart Blacklock along with partners Tim Gummer and Chris Benbow, counsel David Razzell, and associate Sam Almaz, brought their extensive expertise to the deal. Ashurst is well known for its strong capabilities in banking and finance, corporate, and real estate sectors, with over 350 finance lawyers globally providing innovative and commercial legal solutions. This depth proved vital in structuring and executing a complex financing facility within the specialist real estate domain.
Rothesay, the UK’s largest specialist pensions insurer, manages assets exceeding £70 billion and secures pensions for over one million individuals. Harish Haridas, Rothesay’s head of commercial real estate, emphasised that this investment not only provides financial robustness to Rothesay’s portfolio but also supports the long-term retirement security of the pension holders they protect. From Unite Group’s perspective, Gary Leadbeater, director of group treasury and FP&A, highlighted how the new facility enhances liquidity and aligns well with their broader strategic aims, ensuring the fund remains well-positioned for ongoing market demands.
The deal refinances a previous public securitisation and reflects a broader trend of major institutional investors committing significant capital into the UK’s student accommodation sector. The structure of the facility enhances financial flexibility for the Unite Group while securing a stable, long-term income stream based on high-quality PBSA assets. This aligns with the broader market dynamics where student housing continues to attract investment due to its resilience and consistent demand from the growing student population.
Ashurst’s role in this transaction is consistent with its market position among the UK’s leading law firms, particularly noted for its real estate finance work. The firm has a legacy dating back to 1822 and is part of the UK’s Silver Circle, recognised for handling high-value, complex financial deals. The same team led by Stuart Blacklock has recently been involved in other high-profile refinancing transactions, illustrating Ashurst’s rising prominence in advising on major real estate finance deals across the UK and Ireland.
This £400 million facility underlines not only the strength of the PBSA sector but also the increasing role of fiduciary institutions like Rothesay in supporting real estate assets that underpin essential services such as student housing. It illustrates a confluence of expertise between legal advisors, asset managers, and institutional lenders in managing and growing specialised real estate investments for long-term stability and growth.
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Source: Noah Wire Services