Provident is proud to have partnered with the University of Illinois for an exciting academic project on its flagship Urbana-Champaign campus. Financed in May 2019, the UIUC project provides for integral advancement for the academic mission of the University.
Provident is proud to have partnered with the University of Illinois for an exciting academic project on its flagship Urbana-Champaign campus. Financed in May 2019, the UIUC project provides for integral advancement for the academic mission of the University.
The Campus Instructional Facility (“CIF”) will house classrooms, lecture halls and flex space spread over four floors. The CIF Project is anticipated to be an integral component to achieving an increase in enrollment for the College of Engineering. Additionally, the facility prioritizes sustainability, minimizing demand on campus utility infrastructure.
In addition to the CIF Project, the transaction also provided funding for the Feed Technology Center (“FTC”) for the College of Agriculture, Consumer and Environmental Sciences. The new FTC Project has been deemed necessary to maintain the University’s reputation for innovation in nutritional and animal sciences. The FTC Project will provide space to test technologies, design new products and provide hands-on training for graduate students and industry personnel.
Provident Group – UIUC Properties LLC (“Provident SPE”), a newly formed special purpose entity, entered into two long-term ground leases with the University of Illinois for the sites on its Urbana-Champaign campus.
The project was financed through the issuance of $71,525,000 in tax-exempt and taxable lease revenue bonds by the Illinois Finance Authority (“IFA”). The bonds are secured by a Leasehold Mortgage and other security agreements on the project and are to be paid from lease payments made by the University pursuant to the long-term Lease Agreements. The obligation to pay base rent is an independent covenant, and an unconditional obligation of the University. The bonds are rated “A1” by Moody’s. RBC Capital Markets served as the lead underwriter of the bonds.
