QMPF is pleased to have supported Berwickshire Housing Association (“BHA”) with its successful refinancing of Hoprigshiels Community Wind Farm.

This 7.5 MW wind farm is owned by BHA (66.7%) and Community Energy Scotland (33.3%). It is located near Cockburnspath in Berwickshire and was financed through construction with debt funding from Triodos Bank and sub-ordinated debt from REIF. The wind farm became operational in 2017 and has performed well over the period.

QMPF assisted the wind farm Board in establishing if there was financial merit in restructuring the SPV. This was undertaken with a combination of internal financial market knowledge and insight, together with a limited scope market testing exercise. Following this QMPF assisted with the understanding and integration of the proposed term sheet and participated in discussions with Triodos who provided debt in the project refinancing.

We continue to support BHA by providing ongoing treasury advice.

QMPF advised hub West Scotland Project Company 7 Limited (“DBFMco”) on incorporating a new healthcare facility, the Clydebank Health and Care Centre, as a variation to a previously closed healthcare PPP contract, the Glasgow Health Bundle hub project.

The Glasgow Health Bundle hub project was originally intended to deliver three new facilities as a single DBFM transaction: the Greenock Health and Care Centre, Stobhill Mental Health Facility and Clydebank Health and Care Centre. However, unforeseeable issues relating to ground conditions and third-party works emerged on the Clydebank project, forcing a delay to that facility.

QMPF provided financial modelling and advice on the Greenock and Stobhill facilities through to financial close which was achieved in December 2018. QMPF was then reappointed to advise on incorporating the Clydebank facility into the project through a second financial close process. Financial close for the Clydebank facility was achieved in December 2019, with senior funding of c. £19m being provided by Nord/LB and subordinated debt from DBFMco of c. £2m.

QMPF’s role included developing a bespoke financial model to incorporate the Clydebank facility as a variation to the contract. This was a complex modelling exercise as the financial model needed to protect the funders of the first two facilities as well as ensuring that the Clydebank facility was demonstrating good value for money. Furthermore, once the Clydebank facility was embedded into the project, the three facilities would be viewed as a single bundle going forward from a funder perspective. As a result, the model also needed to be able to run sensitivity analysis collectively on all three facilities.

Once the bespoke financial model had been developed, QMPF liaised with the project sponsors, senior funder and model auditor to efficiently conclude the financial modelling for the project and provide all parties with project sensitivities sufficient to support the delivery of funding. QMPF also assisted Burness Paull with the review and negotiation of the project documents and led the debt pricing process at financial close.

The SPV consists of Wellspring Partnership (a consortium of Morgan Sindall Investments, Community Solutions and Apollo Capital Projects), Scottish Futures Trust Investments, HCF Investments and NHS Greater Glasgow and Clyde.

Lisa Ablett, Legal and Commercial Manager at Morgan Sindall Investments said: “We are delighted to have reached financial close on the hub West Clydebank Variation with QMPF as financial adviser, almost 12 months after the original scheme closed. The original project was to deliver three facilities in one bundle, but unfortunately the Clydebank facility was delayed due to various land issues and third party works. QMPF provided proactive and commercially sound advice throughout the development of the original project, amended the model to fund two of the three planned healthcare facilities, and then undertook particularly valuable work on the knitting together of the two debt facilities as the variation was added into the original project. This modelling efficiency ensured that the ongoing operational costs of the SPV were minimised and VfM was maintained for the Health Board. Once again their expertise helped DBFMco achieve a smooth and successful financial close.”

QMPF is delighted to have assisted Energy Saving Trust (“EST”) with the assessment of applications for Round Three of the Low Carbon Travel and Transport (“LCTT”) Challenge Fund, on behalf of Transport Scotland.

The European Regional Development Fund awarded funding to Transport Scotland to deliver a LCTT programme, which is partly delivered through the Challenge Fund. This third round will distribute around £7.5m of ERDF grants across Scotland.

QMPF reviewed each application to determine their financial viability including the level of third party support and the impact on the local community which then fed into the wider assessment process. We attended a full-day moderation meeting with EST and other specialist assessors to determine the final funding allocation recommendation. In supporting EST, QMPF brought its extensive experience of assessing applications for public sector funding including supporting Scottish Funding Council and the Northern Ireland Investment Fund.

QMPF advised the University of York on procuring a private sector partner to design, build, finance and operate a 1,480-bed student residence scheme on the University’s Heslington East Campus.

Equitix was appointed as project sponsor and is the sole equity investor in the project. Graham Construction will build the new on-campus accommodation, which will provide two new colleges to the University, over the next three years. Derwent Facilities Management will maintain the halls during the 53-year concession.

The senior funding for the project is a 45 year, £160m, index linked bond provided by Pension Insurance Corporation (PIC) which is wrapped by Assured Guaranty the monoline insurer.

QMPF advised the University throughout the bid process, from the development of the tender documents to securing the funding at financial close.

Jeremy Lindley, Finance Director at the University of York said: “The advice and support provided by QMPF on this complex project has been superb and helped deliver a successful outcome for the University in a challenging funding environment.”

QMPF was the lead advisor to St. Modwen Properties plc, a FTSE 250 developer and regeneration specialist, on the sale of its 411 bed purpose-built student accommodation asset to UPP.

The accommodation is located on Swansea University’s Bay Campus and provides bed spaces for students studying on pathway courses provided by Swan Global, a joint venture between Swansea University and Navitas, an international pathway course provider. QMPF previously advised the University on funding of the academic element of Swan Global’s purpose built accommodation at the Bay Campus.

The sale of the 45 year leasehold interest in the accommodation generated a total cash consideration of £38m and will see UPP manage the accommodation for the remainder of the concession period.

UPP’s funding solution comprised £38.7 million of index-linked bond debt from Aberdeen Standard Investments with a tenor of 45 years and UPP Group shareholders investing £4.7 million of subordinated debt and equity. The total funds exceed the purchase price to cover working capital, reserve account funding requirements and transaction costs.

QMPF’s role included managing the sales process on behalf of St. Modwen, assisting in negotiating amendments to existing project documents to facilitate a leveraged project finance solution to fund the transaction – working with all stakeholders to deliver the deal and provide the basis for a sustainable long-term operating partnership.

Martin Tresidder, Director of Project Management at St. Modwen said

“QMPF acted as lead advisor to St. Modwen on its sale of the 411 bed purpose build accommodation development to UPP. St Modwen Properties plc has been lead developer for the Swansea Bay Campus where in under 10 years: 1.5M sq ft of academic space, 2500 student accommodation rooms, with a development value in excess of £450M has been delivered.  QMPF has provided St. Modwen with expert advice and exemplar support in all that we have asked from it. QMPF’s experience , knowledge, and commercial acumen has been critical to St. Modwen and our successful delivery together with the building of great relationships.”

QMPF advised the Wheatley Group on the financial and commercial opportunities for installing rooftop solar PV combined with batteries across its housing stock.

Wheatley Group is assessing options for reducing fuel poverty within the communities it serves and for addressing its Energy Efficiency Standards in Social Housing targets to 2032. To assist in this process it appointed QMPF, supported by ITPEnergised and OnGen for technical advice, to review the potential for rooftop solar PV and batter storage to help address these objectives. QMPF led the advisory team and provided Wheatley Group with a report and bespoke financial model addressing the financial case for Wheatley Group and its tenants, structuring options and regulatory considerations.

We used technical information provided by ITPEnegised and OnGen to undertake detailed modelling of energy flows and associated costs, savings and potential revenues for reference property types. This modelling formed the basis of the financial analysis covering both the expected returns for Wheatley Group, as asset owner, and also the impact on energy bills for the tenants. We also worked closely with the Wheatley Group team and both technical advisers to develop a commercial and contracting structure to fit around both regulatory requirements and the parties’ commercial needs.

QMPF is delighted to have advised Queen Margaret University on the financial and commercial opportunities for both the installation of rooftop solar PV and storage in its student residence buildings and also the provision of demand side response (“DSR”) services from its wider energy infrastructure.

The University wished to assess the potential for the installation of rooftop solar PV and energy storage to provide low carbon electricity and offset grid imports in its nine student residence buildings. QMPF modelled the possible savings from such a scheme using technical information and half hourly meter data provided the University. We also advised on potential business models and contracting structures available to deliver such a project and the interaction that these might have with existing funding arrangements.

In addition, the University wished to determine the potential for generating additional value from its existing energy infrastructure via the provision of DSR services. QMPF conducted a soft market testing exercise with selected aggregators and advised the University on potential options, including contracting structure, market appetite and services (including demand management, ancillary services and capacity provision

QMPF advised the University on the procurement of a new 1,164 bed residence at Freemen’s Common which will also deliver a 500 space multi-storey car park, teaching & learning centre and social space. We were appointed as financial advisor in 2016 through to financial close. Equitix was selected as development partner – a consortium comprising Engie as construction contractor and facilities management delivered by Engie FM. Senior funding was provided via a wrapped private placement with the guarantee provided by Assured Guaranty.

Martyn Riddleston, Chief Financial Officer, University of Leicester said

“QMPF supported the University from 2016 through to financial close and assisted in delivering a fantastic outcome which will support the University’s long-term wider strategy. QMPF’s market knowledge and extensive experience in the sector meant that they were well placed to advise on the commercial aspects of the deal. They offered clear and responsive commercial advice to the University throughout the transaction and were able to quickly understand our priorities and requirements which allowed for swift resolution during negotiation with our partners.”

Supporting Cityheart Partnerships Limited, QMPF has reached successful financial close for delivery of income strip finance to fund development of a 178 bed student residence at Station Approach, Hereford.

Working in partnership with Herefordshire Council, Cityheart structured a deal that will provide much needed student accommodation for Hereford College of Arts, and with the potential to accommodate students to the new New Model in Technology and Engineering (“NMiTE”) University. The financing, provided by M&G, was concluded following a comprehensive funding competition run by QMPF with subsequent negotiations able to deliver a competitively priced structure acceptable to all parties.

The development is a key part of Council’s wider regeneration strategy and is expected to open for students in September 2021.

QMPF is delighted to have supported Eildon Housing Association in securing a £40 million private placement deal with major investors the Pension Insurance Corporation (PIC).

This attractive long-term investment will enable the Association to continue to invest in a major programme of high-quality affordable homes to meet the housing needs of communities across the Scottish Borders, delivering 750 new homes by 2021.

QMPF supported the Association from the outset, considering funding routes, supporting the management team in commencing the process, liaising with the Board and providing independent financial evaluation of the offers received. The funding process attracted interest from several major financial institutions, and this represents PIC’s first private placement with a Scottish housing association. The 35-year private placement will be drawn down in two stages over the next two years.

QMPF continues to provide treasury and wider financial advisory support to a number of Scottish RSLs.