Legal & General will invest £4bn to develop student accommodation, staff housing and academic facilities for Oxford University.
L&G will provide the funding for development from its shareholder, annuity and LGIM-managed funds over a 10-year partnership.
It will then hold the assets and transfer them to de-risked pensions and LGIM funds.
The first wave of development will comprise 1,000 homes for staff, 1,000 student bedrooms and 1,000 market rental homes.
L&G said the deal was a game-changer for cities and could be replicated to other universities across the UK.
Louise Richardson, vice-chancellor of the University of Oxford, said: “We will build much-needed graduate accommodation, subsidised housing for university staff and new science parks, where academic departments, university spin-outs and commercial partners can work together to create new companies as well as high-quality jobs.”
Legal & General Group chief executive Nigel Wilson said: “Our partnership with Oxford University is leading the way in bringing together dynamic cities and patient capital, creating great outcomes for long-term investors and for the cities themselves.”
John Cummins, managing director of Legal & General’s Future Cities Business, said: “This partnership is a unique opportunity for two large and long-term UK institutions to work together to address Oxford University’s [infrastructure], and indeed the city’s, future needs, enabling it to continue to be a centre of growth.”
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