Aviva Investors has agreed to acquire and forward fund a fully amortising lease for the creation of a new student village at Staffordshire University. The investment has been made on behalf of Aviva’s Insurance, Wealth and Retirement business, with Aviva Investors providing forward funding via a lease and leaseback structure.
The new student village scheme will be located at the University’s Stoke-on-Trent Campus on its Leek Road site. It is expected to deliver approximately 700 new beds, as well as a new Student Hub on a vacant brownfield site adjacent to the existing accommodation, whilst also refurbishing 297 existing bed facilities at Clarice Cliff Court. Students will benefit from easy access to the new student hub and the main university campus, including the Catalyst Building which comprises a high-tech regional hub for students, staff and employers, as well as catering facilities.
All student housing buildings will target EPC A ratings for energy performance, with roof-mounted photovoltaic panels expected to be installed to create on-site renewable electricity, alongside the addition of air source heat pumps in the design to minimise ongoing energy demand for hot water. Upon completion of the new development, existing accommodation at the Leek Road site will be demolished to make way for the creation of new green space on campus.
The new-build accommodation and the new Student Hub facility are expected to be ready for the new intake of students in September 2026. The refurbished Clarice Cliff Court facilities are currently expected to be delivered in a phased programme for intakes of students in September 2024, 2025, and 2026 respectively.
Mark Wells, Fund Manager, Real Estate Long Income, at Aviva Investors, said: “We are pleased to have been chosen as the preferred funder for what will be a transformative and vibrant project. Strong demand and a shortage in the supply of Purpose-Built Student Accommodation in many submarkets have increased rents for students across the country. With the student population expected to keep growing, it’s incredibly important that the accommodation on offer is revamped and added to where possible. Staffordshire University is known for its strong focus on Computer Science, Games Design and Film Production, all of which are exciting growth areas. We think this will position it well for growth into the future.”
Marcus Mollan, Investments Director at Aviva, added: “It’s great to be involved with the creation of a new complex for the student population at Staffordshire University. The UK is home to great talent, and Aviva’s annuity business is proud to be helping universities like Staffordshire to get ready for the future and nurture this potential through new environments for living and learning.”
Image source - Pexels.
Europe Real Estate — an overview of real estate developments in European countries.
