Sussex uni gains £123m Abrdn funding for student scheme

A joint venture between the University of Sussex and Balfour Beatty Investments has secured £123m from Abrdn for its West Slope student accommodation development. The investment manager has invested £110m into West Slope Residencies Finance on behalf of Phoenix Group, and a further £13m on behalf of its Index-Linked Infrastructure Debt Fund. The jv will design, construct and maintain around 1,900 student flats and townhouses at the university’s campus in Falmer, north of Brighton. The accommodation, arranged as en-suite cluster flats, townhouses and family apartments, will be built over three phases. The project is aiming to achieve a BREEAM Excellent rating and will feature 16,145 sq ft of solar panels, green roofs and grey water recycling. In addition to the residential aspect, the project also includes a health and wellbeing centre, which will include a GP and dental practice, a supermarket and café. The project is located adjacent to the East Slope project, which started to accept students in 2021 and in which Abrdn is also an investor. The University of Sussex has around 14,000 students in need of housing, which is forecast to rise to 17,000 when the West Slope development completes in April 2028. Matt Hamilton-Glover, investment manager at Abrdn, said the fund manager continues to “support the University of Sussex’s growth plans, this being the second project we have invested in, offering long-term, inflation-linked returns to our investors”. He added: “This kind of investment is crucial, given the structural undersupply of quality student housing in the UK. The project’s ambition to achieve a BREEAM Excellent accreditation underpins our commitment to provide sustainable real estate solutions.“ Manuel Dusina, head of infrastructure at Phoenix Group, said “In the UK, the need for more quality, affordable university student accommodation couldn’t be greater, and this investment provides long-term stable cash flows to match our annuity liabilities, while also supporting the sector.” Image from Abrdn