UPP Group has received consent from noteholders for its proposal to convert into a U.K. real estate investment trust (REIT). As a result, special-purpose vehicles (ProjectCos) servicing UPP Bond 1 Issuer PLC's debt will be exempt from U.K. corporation tax arising from their property rental business. There is no certainty that the UPP Group will meet the ongoing statutory tests required to qualify for REIT status at all times. Therefore, our analysis continues to assume that ProjectCos pay U.K. corporation tax. Remediation works at University of Exeter are progressing and, despite some initial delays, the relationship between UPP, Balfour Beatty, and University of Exeter remains constructive, with 100% of rooms nominated for the 2017/2018 academic year. We are therefore affirming
