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EDUCATION

Private Partnerships, “DBFOs” and Joint Ventures

We are at the forefront of innovation in this sector and are leading on innovative structures including disaggregated procurements and incremental partnerships for additional phases, which can be tailored to meet specific university requirements.

  • Private sector investment in “on-campus” university accommodation is growing
  • Universities seeking to preserve core funding for academic investment & transfer risk.
  • Increasingly sophisticated structures can deliver other student and academic facilities, including refurbishment of existing assets.
  • We are the most experienced deal team in the sector, having led most of the Design, Build, Finance and Operate (“DBFO”) projects.
  • There is strong appetite from private sector operators and investors for the opportunity to partner with Universities to deliver accommodation – providing deals are appropriately structured.
  • Projects generally based on a 30-50 year concession agreement, which gives University the right (but not obligation) to nominate. Deal structure and objectives can be tailored to meet specific University requirements.

Possible Rationale for Partnering:

  • Increase university-controlled bed supply
  • Raise ‘off-balance sheet’ funding and retain borrowing capacity for academic investment
  • Generate a capital receipt
  • Transfer risk to the private sector and use their expertise
  • Refurbish existing accommodation stock
  • Improve student experience and deliver amenities such as gyms or a new student union

How we can help:

  • Initial financial modelling of options & potential outcomes
  • Commercial structuring advice
  • Demand & feasibility analysis
  • Preparing tender documentation
  • Establishing framework for demand risk transfer
  • Financial advice through all stages of procurement to transaction close
  • Optimising of project financial model and bidders’ funding solutions
  • Project management

For further information contact:

Graeme Aithie

Partner
+44 (0)131 222 2602

Peter Lyons

Partner
+44 (0)131 222 2613

Kingston University – Residences Partnership

QMPF acted as financial advisor to Kingston University on agreeing a £100m+ partnership with Kingston Student Living (“KSL”) to redevelop and operate 1,216 bedspaces within its student accommodation portfolio.

University of York – £120m PP

QMPF advised the University of York on its successful £120m private placement. The deal attracted strong interest from investors and was heavily oversubscribed, reflecting both the University’s recent successes and future prospects.

St Modwen: Swansea – Navitas accommodation disposal

QMPF was the lead advisor to St. Modwen Properties plc, on the sale of its 411 bed purpose-built student accommodation asset to UPP.