A partnership between students homes investor Equitix, GRAHAM, the University of Manchester and pensions insurer Rothesay is set to redevelop Fallowfield campus as new student accommodation with a £530m gross development value.
The Fallowfield campus redevelopment with 3,300 rooms will be primarily funded by specialist pensions insurer Rothesay. The plans also include a range of shared amenities such as a student bar, bookable social and study spaces, music practice rooms and wellbeing facilities.
Rothesay, Equitix, GRAHAM and the University of Manchester have entered into a 50-year partnership model for the project, which will be delivered in phases, with the first 1,000 units due to open in 2028. The following phases are targeted for completion by 2029 and 2030.
The joint venture believes the project will generate nearly £250m in additional social return on investment, supporting jobs, apprenticeships, local supply chain spending, business growth initiatives, employability skills, work experience, placements and funded student activities.
Barra Mac Ruairí, chief property officer at the University of Manchester, said: “We are very pleased that working in true partnership, we looked for innovative solutions to opportunities and the inevitable challenges working at such scale presents.
“Getting to this milestone was a tremendous endeavour. Our new Fallowfield residences are going to be among the most sustainable in the world and are designed to deliver an outstanding student experience. I’m looking forward to working with our partners as we continue to develop the site.”
Rothesay chief executive Tom Pearce added: “As the cornerstone funder of this innovative partnership, Rothesay is investing in the long-term future of the University of Manchester and its students.
“It highlights how our dedicated in-house origination team continues to provide long-term retirement certainty for Rothesay policyholders alongside supporting productive finance and economic growth across the UK.”
Osborne Clarke acted as legal adviser and Operis acted as financial advisers to Viridis Living, a consortium of Equitix and GRAHAM. Ashurst Perkins Coie and AECOM acted as legal and technical advisers for Rothesay, while Pinsent Masons and QMPF acted as legal and financial advisers for the university.
Meanwhile, earlier this year, Unite Students finalised a joint venture with Manchester Metropolitan University to develop a 2,302-bed PBSA scheme.
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