RBS today announced that it served as sole lead arranger and sole bookrunner in a $201.2 million senior credit facility for Century Campus Housing, a provider of privatized on-campus student accommodations. Proceeds were used to acquire the company from its previous owner, Century Development, and to refinance approximately $130 million of existing debt. Transfield Pty. Limited ("Transfield Holdings") of Australia is the equity holder in the business following the acquisition.

While RBS has led financing overseas of more than 1.5 billion pounds sterling in the student accommodation sector since 2002, this deal represents the first-ever syndicated bank loan to support an acquisition in the accommodation sector in the United States. The credit facilities consisted of a $181.2 million five-year first lien term loan and a $20 million eight-year second lien term loan.

"We are seeing increased interest and demand in the infrastructure sector -- both from entities seeking financing for projects and acquisitions to investors seeking to participate in the sector's growth," said RBS' Alec Montgomery, Managing Director, Infrastructure Finance. "RBS is particularly proud to have been given the opportunity to leverage its deep expertise in accommodations, a unique segment of the infrastructure sector, to successfully lead this transaction for Century Campus Housing."

Added Guido Belgiorno-Nettis, Managing Director of Transfield Holdings, "With existing student accommodation holdings in Australia and New Zealand, the acquisition of Century Campus Housing extends our reach in the market across the Pacific. RBS provided us with the flexible financing we needed to broaden our footprint and become more active players in the growing market for privatized on-campus student housing."

Jim Short, CEO of Century Campus Housing added, "There are many consolidation and development opportunities in student housing, and we look forward to working with RBS as we go forward."

The Royal Bank of Scotland Group ("RBS Group") is one of the world's leading financial services companies providing a range of retail and corporate banking, financial markets, consumer finance, insurance, wealth management and other finance-related activities. RBS Group had a market capitalization of $108 billion at December 31st, 2004, making it the fifth largest bank in the world. For 2004, RBS Group posted total revenue of $42.8 billion and operating profit before tax, goodwill amortisation and integration costs of $14.4 billion. RBS Group serves more than 35 million customers world-wide and employs more than 140,000 people, including nearly 30,000 in the US.

In the US, RBS Group owns Citizens Financial Group Inc. (CFG) (retail bank, credit card and merchant acquiring businesses), the RBS National Bank credit card business and Lynk Systems, a merchant acquirer. Following the acquisition of Charter One Bank in September 2004, CFG is now the eighth largest commercial banking company in the US ranked by deposits with a presence in 13 states stretching from New England through the Mid Atlantic to the Mid West. Corporate Banking and Financial Markets business based in New York is a leading provider of financing solutions to corporate and institutional clients. RBS Greenwich Capital tailors debt capital market solutions to institutions worldwide and has a leading position in US treasuries and asset backed securities.

RBS National Bank credit card business manages more than 1.4 million US customer accounts and sells credit cards across the US. Headquartered in Bridgeport, Conn., the US credit card arm employs more than 500 people.

About Century Campus Housing

Headquartered in Houston, TX, Century Campus Housing is the nation's leading provider of privatized on-campus student accommodations. The company manages over 20,000 beds in 31 properties on 28 campuses in 12 states. Transfield Holdings is the equity holder in the business following the acquisition. Transfield Holdings is an investor and developer predominantly in the infrastructure, property, and defense industries with extensive experience in the student housing sector in Australia and New Zealand.

Contact:

Josh Passman

For RBS

212. 279.3115, ext. 203

jpassman@cjpcom.com

Source: prnewswire