UPP has completed a £230m deal to manage the University of Reading’s entire on-campus student accommodation.
The transaction, reported by Estates Gazette in April, includes £186.5m of senior debt provided by AVIVA and equity from UPP, and will see UPP manage the entire university residential estate over 125 years.
UPP will operate 4,321 rooms, as well as managing the university accommodation office.
Reading will become the first UK university to develop a long-term partnership with the private sector for its entire on-campus accommodation.
The transaction will also generate a capital receipt for the university for investment in the provision of its core teaching and research functions.
As part of the deal, UPP will also develop a further 649 new rooms, which will complete the Whiteknights Campus accommodation project.
Reading acting vice-chancellor Tony Downes said: “Importantly for the University of Reading, at a time when the funding model for higher education is undergoing a radical change, this deal will allow us to concentrate our investment in research and teaching facilities while continuing to provide our students with high-quality accommodation.”
Nick.whitten@estatesgazette.com
