The University of Hertfordshire and Uliving (the consortium comprising Bouygues Development and not-for- profit housing association Derwent Living) today announce, they have reached, together with Meridiam Infrastructure and Legal & General, financial close on the £190 million, off balance sheet single asset, demand risk project for the University of Hertfordshire to deliver its new student accommodation scheme. Today’s release follows the announcement in July 2012 that the consortium had been appointed preferred bidder.

Located at the College Lane campus in Hatfield, the project is part of the University’s vision to enhance students’ lives by creating a fully inclusive living and learning campus environment.

Under the scheme, Uliving will be responsible for the design, build, finance and operation of new student accommodation totalling over 3,000 bedrooms, and the associated social spaces and infrastructure works.

Funding will be arranged through an index linked unwrapped private bond placement with a maturity of c. 41 years. This innovative project bond financing is the first of its kind to be implemented in Europe and gives Uliving access to particularly long term financing provided by institutional investors as an alternative to traditional shorter term banking solutions. Equity partners for the scheme are Meridiam Infrastructure Finance II (55%), Bouygues Development (13.3%), Centro Place Investments, a subsidiary of Derwent Living, (13.3%), University of Hertfordshire (13.3%) and Legal and General Assurance Society (5%).

Bouygues Development will manage the development and construction management of the project. Derwent Living, again as part of the Uliving consortium, will be responsible for the operation and facilities management elements of the contract for a total period of 50 years. The operation and facility management tasks will begin immediately to cover the existing student accommodation.

Construction, which involves the development of over 2500 new bedrooms before September 2016, will be undertaken by Bouygues UK under a contract worth ca. £117 million. Derwent Living’s provision of asset management and facilities management services for the new and existing units will be worth more than £200 million over the lifetime of the contract. Derwent Living will also refurbish the existing 500 bedrooms over the next three years

The scheme will be delivered in three phases with the first phase due to commence immediately and is scheduled to be completed in September 2014 in readiness for the start of the new 2014/2015 academic year.

Each subsequent phase will be completed in time for the start of the following academic year with the entire scheme being completed in September 2016. Construction works will run alongside the existing accommodation units, which will be transferred to Uliving immediately and be in full operation throughout.

In addition to the main construction and refurbishment works, the scheme includes new sports pitches, a campus gym, informal learning and social spaces and a new dedicated bus route.

The University of Hertfordshire’s Student Accommodation Scheme is set to be a market leader in sustainability representing an exciting first in its sector. The new buildings will achieve a ‘True’ Zero Carbon accreditation and meet BREEAM Outstanding requirements under the 2011 regulations.

Through these innovative features, this project will therefore contribute to the UK transition towards a highly competitive and low carbon economy.

Architects for the scheme are Willmore Iles.

Commenting, Nicolas Guerin, Managing Director of Bouygues Development and Uliving said: “I would like to thank everyone involved in this fantastic achievement. This is the first time a deal such as this has been achieved in the UK. This success is attributed to the hard work and dedication of the whole team over many months.  For Uliving, today reinforces our market position as a UK leading student accommodation provider and we are proud to be in partnership with the University of Hertfordshire in delivering this state-of-the-art scheme”.

Peter McCormack, Chief Executive at Derwent Living said: “This is a really exciting project and will see the accommodation lead the market in terms of sustainability and represents a first in the education sector. The new buildings will achieve a true zero carbon accreditation and meet BREEAM Outstanding requirements under the 2011 regulations.

“Derwent Living’s role is to look after the operational and facilities management of this large multi-phase development. Our organisation has a proven track record of working on large student accommodation schemes throughout the UK and the University of Hertfordshire is one of the largest schemes we have worked on to date. I am delighted that once again through the use of innovative funding we will be able to deliver state of the art accommodation at such a prestigious university.”

Professor Quintin McKellar, Vice-Chancellor, the University of Hertfordshire says: “The University is thrilled to have developed a true zero carbon project and raise £190m in the process. In our view, this is pioneering and commensurate with the values of the UK’s leading business-facing University. We attribute the success of this project to our partners Uliving and to our Estates team for providing us with a way to further invest in our students so that we can continue to enhance their lives on campus.”

Commenting Thierry  Déau,  CEO  of  Meridiam Infrastructure, said: “Together with its industrial and financial partners, Meridiam is proud of establishing this long term partnership with the University of Hertfordshire. This project will be a concrete example of intergenerational solidarity as promoted by Meridiam. Long term savings of future pensioners are mobilized today to finance a project key to a young student population that will in return contribute to the UK long term competitiveness. The innovative long term bond financing of this project is a first-of-its kind in Europe and paves the way for the development of project bonds all over Europe. Meridiam intends to continue to play a leading role in the coming years to foster this development.”

Paul Stanworth, Head of Group Treasury and Investment at Legal & General plc, confirmed that Legal & General is aiming to significantly increase its investment in UK infrastructure, adding that “the over £145m of debt and equity which the Legal & General Group has invested in this scheme will make an important contribution to the development of the University of Hertfordshire. We are proud to be participating in this project and look forward to its completion.”

Each class put forward their best joke in assembly and Brian Spencer, Senior Bid Manager, for construction company Bouygues UK who is sponsoring the event, was given the tough job of choosing the best joke and awarding the winning class with a book voucher.

The school children’s fund raising efforts were given a tremendous boost by Bouygues UK’s generous contribution of £500.

Nicola Shadbolt, Headteacher of Aveley Primary said: “The children’s reading book of choice leading up to Friday was joke books and pupils that I didn’t think were brave enough to speak in assembly, confidently told their jokes on BBC Radio Essex. Thanks to the support of Bouygues UK we have raised over £800 for Comic Relief.”

Arnaud Bekaert, Deputy Managing Director of Bouygues UK, said: “Bouygues UK is committed to supporting local communities and is proud to be sponsoring Aveley Primary School in its fundraising efforts towards such an important event as Comic Relief.”

The opening ceremony marks the completion of the main phase of works at the school providing a brand new building as part of its £7 million remodelling and refurbishment scheme through Tower Hamlets’ Building Schools for the Future programme.  The new 1,700 square metre premises, which was built by construction company Bouygues UK, now provides a dynamic and creative learning environment for the sixth form pupils at Phoenix School which boasts a robust expressive arts faculty. 

Beginning with an opening address from Head teacher Stewart Harris, speeches were delivered by Luis Menezes – Bouygues UK’s Site Manager of Phoenix School, Shaun McKeown – London 2012 Paralympian cyclist and Niall FitzGerald K.B.E – former CEO of Unilever foods in South Africa.  The essence of the speeches, and a reflection on Phoenix School’s ethos, was about the importance of collaboration and working together to achieve something amazing which is ultimately what has made the construction of Phoenix School such a success.

To commemorate the opening of the brand new facility two magnificent creations were unveiled, both of which will take pride of place in the entrance to the new building.  Firstly, a tapestry of a Phoenix crafted entirely out of fabrics and metallic sheeting and to which the entire student body contributed in some way.  Also revealed in front of the school and guests was a plaque made out of Portland Limestone featuring one pupil’s winning poem entitled ‘Happy New School’, as well as engraved images contributed by students.

In recognition of the school’s passion for the Arts, the school’s student cohort, under the leadership of Paula Manning, Head of Expressive Arts at Phoenix School, organised the Art Festival around a theme: The Elements – Earth, Wind and Fire.  During the opening ceremony performances were put on by the students, each one telling the history of London through the elements, and concluding with pupils donning Bouygues UK helmets and high visibility vests to demonstrate iconic East London landmarks – and finally Phoenix School – literally coming out of the Earth.  Far from staff and teachers making all the decisions on the content and management of the performances, the pupils were very hands-on during the preparation of the event with students taking on various responsibilities including choreography, stage direction and creative roles. 

The official opening ceremony concluded with all guests being invited to view the exhibits created by the pupils, all of which are based on The Elements in some way, whilst enjoying some lunch courtesy of celebrity chef Jose Pizarro who held live master class sessions in Spanish style cooking.  The school’s pupil and staff jazz group provided further entertainment, much to the delight of students, staff and visitors.

The students’ exhibits will be open to view by guests, including pupils from nearby schools, for the duration of the Art Festival.

Stewart Harris Head Teacher of Phoenix School, said:

“This new building is a realisation of our aspirations for children who attend the school and a shining beacon for autism within the community.  It will inspire us to push at the boundaries of good practice and to make what is an outstanding school even stronger.

“The commitment of Bouygues, Patel Taylor, Tower Hamlets and all the people who worked on the project whatever their role has been brilliant and totally committed to achieving a building that we are all rightly very proud of. Thank you so much”.

Mayor of Tower Hamlets, Lutfur Rahman, said:

“Education is a key priority in Tower Hamlets and I am committed to providing on-going investment in the future of the borough’s children.

“Building Schools for the Future is not just about bricks and mortar, it is about the young people who will experience life-changing benefits from this investment. The new building at Phoenix School is a great example of this as it will provide the pupils of the school with a world class learning environment.”

Cllr Oliur Rahman, Cabinet member for Children’s Services, said:

“Our schools provide an excellent level of education for our children and young people. Investing in them through the Building Schools for the Future programme ensures our children have access to learning environments that match their needs.”

Arnaud Bekaert, Deputy Managing Director of Bouygues UK, said:

“We are extremely proud to be a part of the construction of Phoenix School as it is a prime example of how collaborative working can achieve tremendous results.  Our strong working relationship with Tower Hamlets, Phoenix School and Patel Taylor architects has enabled us to deliver this project ahead of time and provide a fantastic new facility for the school.”

The mixed-use project, worth around £50 million (gross development value), will see ASDA move from its current location in Vicarage Field Shopping Centre to its new location on London Road. As well as the creation of 150 new jobs, existing staff will be transferred from the current store.  The new sales floor will be some 15,000 sq ft larger than the existing store and will act as a catalyst to improve the wider retail offering in the area.

Above the supermarket will be 100 private residential apartments with a selection of retail and kiosk units at ground floor level. There will be 350 lower ground and ground floor car parking spaces for the use of ASDA and town centre shoppers with an additional 10 blue badge spaces for residents’ use. In order to facilitate efficient car park access, there will be a series of junction and highway improvements made to the surrounding network.

Funding for the development of the new ASDA store has been provided by the Aviva Investors Lime Property Fund, who has acquired a 150-year lease.

Grainger plc, the UK’s largest listed residential landlord, has agreed to purchase the private residential element of the scheme, comprising 100 units, which will be completed in 2015. This purchase follows Grainger’s recently stated strategy of taking advantage of the growing private rented sector, and creating a viable Build-To-Rent in the UK.

This first deal follows the previous announcement by Bouygues Development and Grainger to work together in order to attract institutional investment into the Build-To-Rent sector. Grainger will let the residential units and take responsibility for the asset and property management. 

The development has been designed by Chetwoods Architects with Assael Architecture advising on the internal layout of the residential units and common parts to ensure the 100 units adhere to the PRS concept.

The design and build contract will be carried out by Bouygues UK.  Demolition took place last year and work commenced in December 2012. The construction programme is 31 months.  The build will achieve BREEAM excellent for the food store and Code for Sustainable Homes (level 4), in line with Bouygues’ global sustainability strategy.

This new project follows phase one of the regeneration included the Council’s Technical Skills Academy for people aged 14-19 years old, delivered in September 2012, and operated by Barking and Dagenham College. 

This phase also delivered a landmark public square called Short Blue Place that will sit between the new ASDA store and Barking’s main shopping precinct of East Street.

Speaking of closing the contract, Nicolas Guerin, Managing Director, Bouygues Development, said:

“Bouygues Development is very pleased to have reached Financial Close on this exciting and significant stage of the regeneration of Barking Town Centre.  This mixed-use project illustrates our expertise in integrating harmonously a large supermarket with a residential scheme. As a company, we will go above and beyond to support the community and look forward to working with Barking and Dagenham Council on new regeneration schemes and to employ local people and skills on this project.”

Councillor Cameron Geddes, Cabinet Member for Regeneration said:

“The successful collaboration of the council with its private sector partner, Bouygues Development, has enabled the second phase of the London Road / North Street regeneration to come to fruition.  It will deliver a much larger ASDA, along with new public realm, town centre car parking, jobs and housing thereby contributing to the economic growth of the town centre to the benefit of both local residents and businesses.”

Renos Booth, Fund Manager for the Aviva Investors Lime Property Fund, commented:

“Our focus is on working with successful developers and high quality tenants in the corporate and public sectors, and the London Road scheme in Barking represents an excellent example of this. Investors in our fund will benefit from the secure and long-term income provided by such a significant tenant as ASDA in the London area. The acquisition of the store also brings the number of properties held in fund to 50 and the number of different tenants to 38, increasing the diversification the portfolio offers.”

Oliver Jones, Senior Property Communications Manager for ASDA, said:

“We’re excited at the prospect of bringing a much improved offer to our existing customers.  A wider selection of goods, including George clothing, as well as wider aisles and more check-outs will hopefully tempt more people to our store and, of course, the prices won’t change.”

Nick Jopling, Executive Director for Property at Grainger commented:

“The residential element of this scheme is a significant milestone for the private rented sector, putting into practice a new model for the creation of purpose built high quality and professionally managed rental accommodation. This is a sector that desperately needs to grow in order to meet the demands of the UK population and is supported at the highest levels of Government, and we believe that this style of residential development has huge potential to grow in the coming years.”

The consortium will tender for housing renewal and regeneration projects in Westminster which have a value of more than £400m. Furthermore, the agreement has an option for Tri-Borough partners Hammersmith and Fulham and Kensington and Chelsea to also use the panel, which could see the total value of works rise to £900m.

Cllr Jonathan Glanz, Westminster City Council’s Cabinet Member for Housing and Property, said of the appointment:

“We have chosen to work with eight developers who have a proven track record in delivering high quality homes and open spaces in areas with a similar urban environment to Westminster.”

Londonewcastle and Bouygues Development have come together to meet local authorities’ complex housing needs on regeneration projects throughout London.  The consortium draws on Londonewcastle’s design and development management expertise with Bouygues Development’s experience in delivering sustainable regeneration schemes, construction expertise and a track record of successful delivery.

David Barnett, CEO of Londonewcastle commented:

“Together Londonewcastle and Bouygues Development are a powerful partnership that offers London’s local authorities a genuine alternative to the conventional house builder approach. Our shared vision to deliver design-led urban regeneration throughout London makes for a compelling story and we look forward to working with Westminster on the framework.” 

Richard Fagg, London Director of Bouygues Development, added:

“We are really pleased to have joined forces with Londonewcastle and to be tendering for projects within Westminster’s developer framework as part of the wider regeneration scheme throughout the borough.  With Londonewcastle’s experience in design and development management and Bouygues Development’s history of partnering with local authorities and delivering sustainable living solutions, we are confident of a successful partnership”.

Londonewcastle is renowned for its innovative and creative approach to residential development and is responsible for award-winning schemes in Islington, Clerkenwell, Camden, St John’s Wood and Chelsea. 

In London, Bouygues Development has been responsible for a range of projects, including the on-going regeneration of Canning Town in Newham and London Borough of Barking & Dagenham’s retail led regeneration of the London Road town centre site.  Bouygues Development is currently working in partnership with local authorities to deliver in excess of 1,500 units across the city.

After three and a half years of extensive planning for the regeneration of Canning Town, Bouygues Development reached financial close on phase one of the project last week.  Recently named Hallsville Quarter*, construction work has now begun to create a new town centre in the heart of Canning Town.

This major milestone was marked with a groundbreaking ceremony attended by representatives from the three key parties responsible for the development: Sir Robin Wales Mayor of Newham; Madani Sow, Chairman of Bouygues UK and Bouygues Development and One Housing Group Chief Executive, Mick Sweeney.

The design and build contract is being carried out by Bouygues UK and construction on this £77 million (gross development value) phase one of the scheme will complete in early 2015.

The £600 million (gross development value) town centre scheme is the critical element of the London Borough of Newham’s £3.7 billion Canning Town and Custom House Regeneration Programme. The six hectare site will reconnect the areas north and south of the A13 flyover – linking Canning Town Corner with Barking Road and Rathbone Market – to create a thriving, accessible and safe town centre.

Phase one of the scheme will comprise 179 residential units of private and affordable housing, and a Morrisons supermarket of over 7,000 square metres.  The entire town centre scheme to be delivered over five Phases includes approximately 1,100 mixed tenure housing units, more than 30,000 square metres of leisure and retail space and over 3,000 square metres of space for community facilities and a health centre. New pedestrian links and cycling provision is also included, as well as 1,100 secure parking spaces. The entire scheme is scheduled to be completed by 2024.

Madani Sow, Chairman, Bouygues UK and Bouygues Development says:

“Everyone involved in this scheme has worked tirelessly over the last three and a half years to reach this point so it is fantastic that we will shortly be commemorating such a pivotal moment in Canning Town’s rich and fascinating history. Bouygues UK and Bouygues Development are enormously proud to be part of such a transformational scheme in East London, a great example of the city’s continuing eastward shift”.

Sir Robin Wales, Mayor of London Borough of Newham says:

“After a fantastic year that showcased the changing face of Newham what better way to end it than with the start of this transformative regeneration scheme. Hallsville Quarter will be a thriving town centre that reflects our aspirations for the borough and our residents. It will also establish a brand new commercial and residential hub for the whole of East London.

“This is a huge milestone for the area and I am delighted to see our years of hard work come to fruition as construction begins.  I look forward to working with our partners over the next decade to deliver this ground-breaking scheme.”

Mick Sweeney, Group Chief Executive at One Housing Group said:

“I am delighted to see Hallsville Quarter progress to this significant stage of the project. This scheme will provide much needed affordable homes in East London and will create a diverse, sustainable community.”

Richard Haynes, Development Executive at Morrisons, said:

“As we expand our presence in the capital, Morrisons is delighted to be part of such a landmark regeneration scheme in East London.  Our new store at Hallsville Quarter will provide approximately 300 new jobs in Newham in a range of full-time, part-time and training positions.  These will include our famous butchers, bakers, fishmongers and other fresh food specialists, and we will work closely with the local community in Canning Town to maximise opportunities for local people.  Being part of this innovative partnership and excellent development is great for us, our expanding team and our customers.”

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The regeneration proposals will take place over two principal development phases and provide a diverse range of retail, residential, dining and leisure uses. A key part of the proposals will be the provision of new public spaces including a new park and a vibrant pedestrian street.

Subject to planning permission being granted and the necessary due diligence, it is expected that start on site will be early 2014. 

Runnymede Council’s Chief Executive, Paul Turrell said:

“This is a great opportunity to boost Addlestone as a town that people will want to visit.  The proposals put us on the map as something more than just a large supermarket and takeaways.  The proposals are for a mixed use development bringing retail, business, housing and leisure to the town.  Our intention is to involve residents and businesses from the outset to create a town which all generations will be proud of.”

Also commenting on the appointment, Bouygues Development’s Managing Director, Nicolas Guerin said:

“We are thrilled to be a part of this exciting new prospect for Addlestone. There is a genuine lifetime opportunity to create something special in the heart of the town and we believe that time is now. We look forward to working with the Addlestone community and Runnymede Borough Council to bring this new start to fruition.”

Working with Bouygues Development is global architectural, urbanism and design practice Broadway Malyan, with its Weybridge-based team of experts based minutes from the Addlestone town centre site.  

Director of Broadway Malyan John Turner said:

“This is a major chapter in an important scheme and our locally-based expert designers will now work in close partnership with the wider project team to deliver a reenergised town for local residents and businesses.”

The project, to provide new housing through a public-private partnership, is a welcome addition to the borough and Brent Coefficient – through Hyde, Bouygues UK and Ian Williams – is helping the Council address the shortage of suitable housing for homeless families, reduce reliance on bed and breakfast accommodation, and modernise residential care services for people with learning difficulties.

Thirteen sites across Brent deliver a broad range of properties: from five and six bedroom town houses, to flats of all sizes to suit individuals and local families of different sizes.  They all comply with eco homes level three or four which underlines Brent Council’s commitment to sustainability.

The occasion was marked with a presentation showcasing the 13 new sites that have been delivered and speeches from representatives of the housing delivery partners.

Speaking at the event, Simon Peacock, Finance Director of The Hyde Group, said:

“At Hyde our underlying purpose is to improve the lives of people who live and work in the communities where we have a presence and so we’re pleased to be able to make such a real and positive difference to those families in most need of housing in the London Borough of Brent and at a time when there is little development taking place across our country.

“This evening we’re also paying tribute to a notable milestone for a well-established, effective partnership that has invested a tremendous level of commitment into the project. Many obstacles had to be overcome to bring this project to life; it has taken many talented and committed individuals to get where we are today against the backdrop of the worst financial crisis in living memory.  None of this would have been possible without the experience of the delivery team in this unique partnership. ”

Managing Director of Bouygues UK, Lionel Christolomme, commented:

“The completion and handover of the Brent PFI Housing scheme ahead of time and on budget, is a tremendous achievement for all involved.  As a result of a strong working relationship between Bouygues UK, The Hyde Group and Brent Council, hundreds of affordable homes have been delivered across the borough, helping families who were very much in need”.

Resident of one of the new 384 homes, Ms Rachel McBain-Bernard, said:

“I’m much happier; its closer for work and the children only need to get one bus to school. And with three bedrooms, it’s much more spacious and easier to clean. We’ve all settled in nicely.”