£30m loan to UCLan will help bring about improvements at the university
An agreement between the University of Central Lancashire (UCLan) and Canada Life Asset Management will provide the university with £30 million to deliver on its strategic plan.
In return, Canada Life Asset Management will collect rent from Ribble Hall, Roeburn Hall and Whitendale Hall under a 40-year financial lease, Place North West reports.
The deal will provide the university with cash to implement its strategic plan, while the investor will accrue rent for three student blocks in Preston city center for the next 40 years.
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The properties include 184 apartments and can accommodate approximately 1,000 students.
Annual rent will start at £854,000 with annual rent increases of between 1% and 5%.
In turn, UCLan will use the £30m to deliver on its strategic plan. This includes increasing the number of clinical facilities for medical science courses and improving several university buildings, including student accommodation.
When the finance lease expires, the property will revert to the university.
Michael White, Head of UK Property at Canada Life Asset Management, said: “We are delighted to support the University of Central Lancashire with a significant £30 million loan facility to help deliver of its strategic plan.
“This 40-year financing agreement reflects Canada Life Asset Management’s continued commitment to providing substantial, long-term facilities to high-quality sponsors who offer attractive cash flows in support of our annuity business. in block.
Graham Baldwin, Vice-Chancellor of the University of Central Lancashire, said: “We welcome this new relationship with Canada Life Asset Management to provide funding of £30 million which will be used towards our future expenditure. capital on key initiatives to support our strategy. aim to provide a better experience for students and colleagues.
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