Canada Life Asset Management has agreed a finance lease with the University of Central Lancashire where it will purchase the 250-year long leasehold interest in three student accommodation blocks on the universities main campus.
The £30m deal will see the firm own the properties on a 40-year term. The initial rent has been set at £854,000 per annum, with annual rental uplifts to RPI between 1% and 5%.
The university said it intended to invest the funds to deliver on its strategic plan to increase clinical facilities for medical science courses and improve several of its university buildings, including the student accommodation.
The three accommodation blocks – Ribble Hall, Roeburn Hall and Whitendale Hall – provide around 185 beds.
Michael White, head of UK property at Canada Life Asset Management, said: “This 40-year financing arrangement reflects Canada Life Asset Management’s ongoing appetite to provide substantial, long-term facilities to high-quality sponsors that offer attractive income cash flows in support of our bulk annuity business.”
Graham Baldwin, vice-chancellor at University of Central Lancashire, added: “We welcome this new relationship with Canada Life Asset Management to provide £30m of funding which will be used as part of our future capital expenditure on key initiatives to support our strategic goal of providing an improved student and colleague experience.”
To send feedback, e-mail samantha.mcclary@eg.co.uk or tweet @samanthamcclary or @EGPropertyNews
