Primary and special servicing case study

UK student accommodation assets

Primary and special servicer for £107m UK student accommodation assets

The property

  • £107m UK student accommodation assets.

The loan

  • Financing for four UK Student Accommodation Assets in Nottingham, Leicester and Sheffield with a loan of £107.3m.

The strategy

  • Solutus is mandated as Primary servicer and Special servicer for the Ayr Issuer S.A secured bond transaction that closed in August 2014.
  • Avenue Capital Group is a global investment firm focusing on distressed securities and private equity opportunities in the United States, Europe and Asia.
  • In line with the Group’s strategy to grow the portfolio through further acquisitions, the transaction also includes a tap feature. This allows further issuances to the Bond in order to refinance or acquire further assets, provided that certain conditions have been met, with the Assets being added to the security package. This feature was utilised in December 2014 with a further 3 assets being added to the transaction, taking the total loan value to £136.5m.
  • The transaction follows CMBS 2.0 guidelines, providing improved levels of disclosure to investors across all facets. Solutus developed a robust, tailored reporting package, providing Investors with a high level of transparency. In addition, Solutus produce supplementary reporting packages in ECB, Bank of England and CMSA E-IRP reporting formats.