8 February 2010
UPP is fifth in the Sunday Times Deloitte Buyout Track 100 table that compares profit growth of private-equity backed businesses over the past two years.
University Partnerships Programme – UPP - is the trading name of UPP Group Holdings and its subsidiaries and is owned by Barclays Private Equity. It provides university campus infrastructure, student accommodation and asset management services.
The table shows that UPP which employs 338 people had nearly 127 per cent annual profit growth to August 2009.
The UPP business model is based on long-term contracts involving the company designing, financing and operating campus infrastructure. The business has had “record profit growth of 413 per cent” over the last three years, it reports. It also had EBITDA (earnings before interest, taxes, depreciation and amortization) of £31.8m for the financial year ending 2009,
Sean O’Shea, chief executive of UPP, said investment in the higher education sector is of growing importance. “We are delighted to have our financial performance, the investment of Barclays Infrastructure Funds and the hard work of all our staff recognised in this way.”
Other FM related businesses in the leaguer table are care-home operator Healthcare Homes at 27, security provider VSG at 39, fleet management firm Leasedrive Velo at 89.
Healthcare Homes – 80 per cent owned by Bowmark Capital and 20 per cent by its management – had annual profit growth of almost 65 per cent to financial year-end September 2008.
VSG, owned 40 per cent by LDC (part of Lloyds Banking Group) and 60 by its management had almost 54 per cent growth, the table shows.
Leasedrive Velo, owned 51 per cent by LDC and 49 per cent by management had annual profit growth of just over 32 per cent to December 2008.
UPP’s record profit growth was driven by the strong performance of the company’s cash flow based assets, the construction of over 3,000 student rooms during the past year alone, acquisitions and the improved efficiency in service delivery and procurement practices. UPP has invested over £1bn into the higher education sector and plans to invest a further £1bn in the next two years.
In January 2009,
FM World reported that UPP set itself the target of managing 35,000 student rooms producing a rent roll of £125m within three years.
UPP starting the academic year 2009/10 with a sector leading occupancy level of 100 per cent across its portfolio of almost 19,000 student rooms and a projected rent roll of around £75m for the year.
Since the 2009 financial year-end, UPP completed a £133m transaction financed by Barclays and RBS with the University of Exeter. A £115m transaction, financed by Barclays, RBS and the Bank of Scotland, was completed with the University of Nottingham.
University Partnerships Programme, the student accommodation and FM services provider, has completed a £133m transaction for work at the University of Exeter.
The project will involve UPP designing, financing and operating new residential accommodation at three locations on the University of Exeter’s Streatham campus.
The value of the construction contract is £77m and will take place over three years from financial close, with the final phase due for completion in 2012/13.
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