Specialist pensions insurer Rothesay has agreed a deal to provide majority funding for the £530m redevelopment of the Fallowfield student campus in Manchester.
The project is being delivered through a 50-year partnership model between the University of Manchester, Equitix and GRAHAM, with Rothesay providing funding for the redevelopment.
The campus will provide 3,300 new, modern rooms and shared social facilities including a student bar, bookable social and study spaces, music practice rooms and dedicated wellbeing facilities.
The redevelopment project will be delivered in phases, with the first 1,000 rooms due to open in 2028. Subsequent phases, including additional accommodation and the central hub facilities, will be completed in 2029, with the remaining rooms becoming available in 2030.
Torsten Bell, minister for pensions, said: “Britain needs to get back into the business of investing in its own future, and we are supporting the building, investing and innovating that makes that happen. This significant commitment to sustainable student housing in Manchester shows how institutional investment can achieve that while delivering strong long-term outcomes for savers.”
Barra Mac Ruairí, chief property officer at the University of Manchester, added: “We are very pleased that by working in true partnership we looked for innovative solutions to opportunities and the inevitable challenges which 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.”
Tom Pearce, CEO of Rothesay, said: “Rothesay is committed to making high quality investments that deliver real social and environmental value while securing the future for the nearly one million people whose pensions we protect. 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.”
Hugh Crossley, CEO of Equitix, added: “As one of the UK’s leading developers and investors in infrastructure, Equitix is proud to work alongside our consortium partners to reach this significant milestone. This is a true partnership with the University of Manchester, demonstrating that projects of this scale are built on shared ambition and long-term commitment.
“With extensive experience developing and investing in student accommodation, we recognise the important role high quality living environments play in supporting students and university communities. We are particularly pleased to further strengthen our investment in the North West and will work hard to ensure the project delivers value for the benefit of the students, the University of Manchester and our investors for years to come.”
Neil McFarlane, strategic development director at GRAHAM Investment Projects, said: “Projects of this scale can only be delivered through strong collaboration between the public and private sectors, and reaching financial close is a major milestone that enables us to move into delivery. Significantly, Fallowfield is the largest Passivhaus student accommodation project in the world as well as being the largest pre-cast MMC-centred development in the UK, setting a new benchmark for sustainable development. We are proud to be at the forefront of delivering a project of this scale and together with our partners, we look forward to creating a development that will have a lasting positive impact for students, the local economy and Manchester for generations to come.”
Osborne Clarke acted as legal advisers and Operis acted as financial advisers to Viridis Living, a consortium of Equitix and GRAHAM. Ashurst Perkins Coie and AECOM advised Rothesay. Pinsent Masons and QMPF acted as legal and financial advisers for the university.
