Manchester Metropolitan University – Student Accommodation JV

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