Canada Life Asset Management today announces it has agreed a £30million finance lease with the University of Central Lancashire.
The transaction is structured on the basis of a purchase of a 250-year long leasehold interest in three student accommodation blocks located on the university’s main campus in Preston: Ribble Hall, Roeburn Hall and Whitendale Hall. The finance lease is for a term of 40 years at an initial rent of £854,000pa with annual rental uplifts to RPI between 1% and 5%. On expiry of the finance lease period, the long leasehold tenure is determined, and the property reverts to the University of Central Lancashire.
The university intends to invest the funds to deliver on its strategic plan that will include an increase in clinical facilities for medical science courses and improvements to several university buildings, including the student accommodation.
Established in 1828, the University of Central Lancashire has approximately 38,000 students in campuses across Preston, Burnley, Westlakes and overseas in Cyprus. The university plays an important role in the North West, offering largely vocational courses designed to lead to employment in fields such as medical sciences, dentistry, engineering and veterinary medicine.
Michael White, Head of UK Property, Canada Life Asset Management, said: “We are delighted to be supporting the University of Central Lancashire with a significant loan facility of £30 million, to help in the delivery of its strategic plan. 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, University of Central Lancashire:
“We welcome this new relationship with Canada Life Asset Management to provide £30 million 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.”