Mount Pleasant Halls, Cambridge

Following the introduction of the opportunity, we modelled the financial returns of the investment and recommended a purchase price of c. £72m, which enabled L&G to outbid the highly competitive annuity market. After confirmation our client was the successful bidder, we navigated them through a complex legal process to draft the development funding agreement.

A ground-breaking deal for the student sector, with our advice securing a 47-year income strip - a first for an Oxbridge college. The deal was mutually beneficial with St Edmunds' College having the ability to buy the accommodation at the end of the lease for £1.

The income strip lease terms were set at a rent that allowed the college to share the benefit of below market rental levels with its students, whilst also matching L&G’s return requirements. Annual RPI uplifts, capped and collared at 0% and 4.50%, were built in to ensure this.