QMPF is delighted to have supported University of Exeter in reaching Financial Close for the development of its West Park Student Residences development which will be delivered for the University by UPP.

QMPF has supported the University from project inception, through procurement, and navigating challenging financing and planning landscapes to deliver this significant project for the University. Delivered under a design, build finance and maintain partnership, the project will be financed using an indexed lease (commonly referred to as an income strip) and is the fourth such development on which QMPF has advised the University, through an advisory relationship that spans over 15 years.

On completion, the project will deliver over 1,800 bedrooms, with rooms being completed for both 2027/28 and 2028/29 academic years. The new accommodation has been designed to be Passivhaus certified with hot water produced by heat pumps and the new development being completely gas-free, reflecting the University’s focus on sustainability and its wider net zero strategy.

QMPF is delighted to have supported Aston University on its recent fundraising. Restructuring its existing borrowing and extending its relationship with HSBC through provision of a new revolving credit facility. The University has been able to further secure its liquidity position and set the University up for the further delivery of its Strategy 2030, continuing its growth and evolution.

The transaction builds on QMPF’s ongoing relationship with the University as its retained treasury adviser and we were delighted to support the University through the funding process. QMPF’s advice included determining the funding requirement, managing the funding competition, evaluating and optimising funding offers and structures, supporting governance approvals and steering the transaction to completion. We look forward to continuing to support the University in delivering its objectives.

Craig Jones, Executive Director of Finance, Aston University said:

“On behalf of Aston University, I want to extend my sincere thanks to the QMPF team for your expertise and guidance through Aston University’s financing project. This project underpins continued progress to our 2030 Strategy, and particularly securing robust liquidity. We value your partnership approach and professionalism through this project and look forward to continuing to work with QMPF” 

QMPF acted as financial advisor to Manchester Metropolitan University as it entered into a joint venture framework agreement with Unite Students for the redevelopment of its Cambridge Halls site.

The JV will be a long-term strategic partnership between the parties, with Unite acting as developer, asset manager and operator to the JV. The Cambridge Halls redevelopment is expected to provide 2,300 new beds, replacing the current 770 beds constructed in the 1990s that no longer meet the needs of students. Total development costs are estimated in the region of £390m.

Manchester Metropolitan University will own a 30% stake in the JV, reflecting the contribution of the Cambridge Halls site to the JV. Unite’s equity commitment is estimated to be around £125m for a 70% stake, with the remaining development costs expected to be funded by debt secured against the JV. QMPF supported the University with the review of the financial and commercial terms of the offer, alongside options analysis and transaction advice which was underpinned by financial modelling.

The planning application for the development is expected to be submitted later this year, which would support formation of the JV around the end of 2025.

Andrew Hewett, Chief Financial Officer, Manchester Metropolitan University said

“This project represents a significant investment in our campus and in our student experience. QMPF has played a key role in providing support and advice to us, from initial discussions through to the completion of the joint venture framework agreement”.

Unite Students press release: www.unitegroup.com/articles/new-university-partnership-with-manchester-metropolitan-university-to-develop-2300-beds

QMPF acted as financial advisor to Staffordshire University for its student accommodation partnership with Staffordshire Campus Living. The project reached financial close in July 2024 and will deliver an innovative, low-carbon student village with approximately 1,000 beds and a student hub facility at the University’s main campus in Stoke.

Securing an off-balance sheet solution for the University, Staffordshire Campus Living is a consortium formed by Hochtief PPP Solutions and Plenary Group and is responsible for the Design, Build, Finance and Operation (“DBFO”) of the student village. The University will benefit from a minority equity stake in the project company, with senior debt funding provided by Aviva Investors through a long-term income strip arrangement. The project is targeting completion in advance of the 2026/27 academic year.

The transformational project is located at the University’s Leek Road campus and will feature cutting-edge and sustainable architecture near the University’s nature reserve and River Trent. The student village will provide 700 new student rooms, built in cluster blocks and town houses, alongside the refurbishment of 297 rooms at the University’s existing Clarice Cliff Court residences. Enhancing the student experience further, there will be a student hub facility, offering social spaces, study areas and a roof-top terrace with an outdoor seating area.

The development will target EPC ‘A’ ratings and includes roof-mounted photovoltaic panels, to generate on-site solar electricity, and air-source heat pumps. Willmott Dixon will act as contractor within the consortium and Pinnacle Facilities Management will support the operation of the new accommodation alongside the University.

Our involvement with the University dates back to the inception of the project in 2020. We provided initial financial modelling and advice on the options for delivering student residences through DBFO partnerships with private sector developers. Our financial and commercial advice continued through a soft market testing stage into the full procurement of Staffordshire Campus Living as partner and transaction support to reach Financial Close. The University was also advised by Womble Bond Dickinson on legals and Student First Group on procurement, operations and property matters.

Sally McGill, Chief Financial Officer and Executive Lead for Sustainability at Staffordshire University, commented on the significance of the project: She said: “This project represents a major milestone for Staffordshire University, significantly enhancing our student experience while prioritising sustainability. The innovative, low-carbon student village will provide modern, comfortable, and eco-friendly living spaces for our students, aligning with our commitment to environmental responsibility. We are grateful for QMPF’s expertise and guidance throughout this process.”

QMPF provided financial advice and transaction support to Newcastle University as it entered a joint venture framework agreement with Unite Students for the redevelopment of the University’s Castle Leazes site.

The JV represents a long-term strategic partnership between the parties, with Unite acting as development and asset manager, leveraging its experience as the UK’s largest owner, manager and operator of purpose-built student accommodation.  The Castle Leazes redevelopment is expected to provide new 2,000 bedspaces and replace existing stock of 1,250 beds. The total development costs of the scheme are estimated at approximately £250m.

Newcastle University will own a 49% stake in the joint venture project and contribute a 150-year headlease for the site. QMPF supported the University team with review of the financial and commercial terms of the offer, alongside options analysis which was underpinned by financial modelling and sector benchmarking.

A planning application for the new development and demolition of the current accommodation has been submitted to Newcastle City Council in April 2024.

Nick Collins, Executive Director of Finance, Newcastle University:

“We are delighted to partner with Unite Students to redevelop Castle Leazes. This joint venture will provide high-quality, affordable accommodation for our students and help us continue to attract students from across the UK and around the world to Newcastle University and our city.”

Unite Students press release:  https://www.unitegroup.com/articles/unite-students-enters-joint-venture-with-newcastle-university

QMPF acted as lead and financial advisor to the London School of Economics and Political Science (LSE) on the selection of a consortium comprising Bouygues UK and Equitix as the preferred development partner for the redevelopment of the existing Bankside House student accommodation in Southwark, London.

Located opposite the Tate Modern art gallery, the project aims to increase the number of student beds on the site and support LSE’s ambition to offer a bed to every first-year student by 2030.

The redevelopment will include new amenity spaces and forms part of LSE’s wider plans to provide access to 6,000 student beds across its portfolio.

QMPF will continue to support the School as it works alongside Bouygues UK and Equitix, to begin the selection of a design team to work up proposals and prepares its planning application in early 2025.

The University of Edinburgh, as part of its Energy Masterplan, explored the possibility of developing low carbon district heating networks to provide the heating requirement for two of its core city centre campuses. 

The University wanted to understand the financial implications of pursuing the new schemes, in comparison to the counterfactual, which in itself, was different to the ‘business as usual’, reflecting the University’s ambitious approach to further modernising its energy strategy. 

QMPF was appointed to prepare the financial model and develop the Financial Case for Investment within the wider Business Case for presentation to the University’s Executive. QMPF worked closely with the University’s technical advisors, Buro Happold, using the project techno-economic models as the basis for the development of the financial models.  

QMPF also supported the decision making around the project’s legal and commercial structure, advising on the optimal position in the context of the University’s existing approach to energy provision across its campuses. 

Dean Drobot – Head of Energy & Utilities, University of Edinburgh said:

“The team at QMPF provided exemplary strategic planning support. They communicated key insights from their financial model very effectively, contributing significantly to our outline business case development and our understanding of risk and sensitivity”.  

QMPF acted as financial advisors to the Royal College of Art on the raising of £45m of borrowing, via a general purpose Revolving Credit Facility (“RCF”), to fund the completion of the College’s new Battersea Design and Innovation campus, while also providing additional funding to invest in new initiatives that will allow the RCA to meet its longer-term strategic objectives.

QMPF provided advice on the suitability of various debt markets and funding instruments, offered recommendations based on the optimum debt financing options and provided support throughout the tender process and subsequent legal process to ensure the successful completion of the transaction by the required deadline.

Amanda White, Chief Financial Officer at the College said:

“We are delighted with the outcome of the refinancing exercise, which has delivered the flexibility and terms the College was looking for, with much improved pricing. This new funding will enable the College to continue delivering against its vision of attracting, supporting and convening the world’s most talented faculty, students, artists, designers and creative leaders.

I would like to thank QMPF for their advice throughout the process, in particular their ongoing engagement with the College’s Refinancing Subcommittee and support during the competitive tender process, which resulted in the College obtaining such great terms. I was really impressed by their sector knowledge and understanding of our requirements, which made the process so much easier”.

QMPF acted as financial advisors to the University of Hull to successfully secure an £86m private placement, issued under a ‘green’ financing framework. QMPF’s involvement originated with a capital structure review and options appraisal, leading to the fundraising process which will enable the University to accelerate towards its ambitious goal of becoming a carbon neutral campus by 2027.

Three UK and US institutional investors subscribed to the placement, and the funds raised will be used to develop world-class laboratories and teaching spaces. This will include new carbon efficient and carbon neutral buildings, as well as additional renewable energy and digital infrastructure, providing the highest quality education and research facilities.

The private placement was issued within the criteria of the University’s “use of proceeds” green financing framework. The framework is aligned to the United Nation’s Sustainable Development Goals, ensuring the projects that the University invests the proceeds in contribute to environmental sustainability. Sustainalytics provided a second-party opinion on the framework.

As part of the University’s funding process, a renewed commitment was agreed with Lloyds Bank in the provision of a revolving credit facility.

QMPF advised the University of Oxford in respect of an appropriate financing rate for the redevelopment of postgraduate housing at its Court Place Gardens site. The project will be developed on the site of current University accommodation in Iffley and will deliver 84 postgraduate homes with many of them designed for families.

It will be delivered through the University’s £4bn joint venture with Legal & General which was formed in June 2019, which QMPF also advised on. Court Place Gardens will be the first step in achieving the strategic goal of delivering at least 1,000 units of graduate housing and 1,000 staff homes via the JV; creating much needed housing for the City.

Simon Boddie, Chief Financial Officer, said, “Working with QMPF allowed us to build upon our longstanding relationship. Its advice was clear, logical and robust and allowed us to make informed decisions on the Project.”