Canada Life Asset Management has completed a £30m financing arrangement spanning 50 years with the University of Kent.
Canada Life has bought a long leasehold interest in three student accommodation blocks on the university’s main campus.
The transaction will see the University of Kent lease back the premises for 50 years at an initial rent of £1.33m per annum, subject to annual uplift indexed to the Consumer Prices Index, capped at 5%.
On expiry of the leaseback period, Canada Life’s leasehold interest is terminated for the consideration of £1.
Michael White, head of UK property at Canada Life Asset Management, said: “This 50-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.”
Trevor Pereira, director of estates and commercial services at the University of Kent, said: “This arrangement is an important part of our future plans for the campus, freeing up capital to support the ambitious programme of work in our next institutional strategy. Leveraging income through our estate is increasingly important, with Canada Life’s support providing immediate funds to support us in the years ahead, along with the long-term security needed for our accommodation offer.”
Photo © Norbert Levajsics/Unsplash
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