University of Exeter: INTO Student Accommodation Lease Variation

QMPF provided financial advice to University of Exeter in relation to its negotiation of variation to the lease provisions and lease term associated with the lease of student accommodation by INTO Exeter LLP. QMPF’s support included negotiation in relation to the revision of the lease positions, analysing the value of the associated lease premium and evaluating the financial risks associated with the lease position arrived at. QMPF further supported the University in understanding the motivations for the asset owner (Legal and General UK Property fund) in the context of it seeking a sale of the underlying asset concurrently to the lease variation. This, alongside analysis to understand the relative value of different aspects of the lease terms being varied, provided important context to negotiations and assisted in demonstrating value for money.

The transaction further demonstrates QMPF’s experience supporting clients considering lease structures associated with student accommodation assets and implementing variations to complex property transactions that can realise value for clients. University of Exeter realised a c.£19.5m premium from the transaction.