Canada Life Asset Management has provided 拢30m (鈧�35.2m) in financing to the University of Kent through a long-term lease purchase of three student accommodation buildings.
The deal involves the University of Kent taking a lease back for 50 years at an initial rent of 拢1.33m per annum, subject to annual indexed uplift to the consumer prices index capped at 5%, said, adding that on expiry of the leaseback period, Canada Life鈥檚 leasehold interest in the three student accommodation blocks on the university鈥檚 main campus is terminated for the consideration of 拢1.
Michael White, head of UK property at Canada Life Asset Management, said: 鈥淲e are delighted to be supporting the University of Kent with a significant facility of 拢30m, to enable strategic reinvestment into the University.
鈥淭his 50-year financing arrangement reflects Canada Life Asset Management鈥檚 ongoing appetite to provide substantial, long-term facilities to high-quality sponsors that offer attractive income cash flows in support of our bulk annuity business.鈥�
Trevor Pereira, director of estates and commercial services at University of Kent, said: 鈥淭his arrangement is an important part of our future plans for the campus, freeing up capital to support the ambitious programme of work in our next institutional strategy.
鈥淟everaging income through our estate is increasingly important, with Canada Life鈥檚 support providing immediate funds to support us in the years ahead along with the long-term security needed for our accommodation offer.鈥�
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