Part of the funds will create 865 new on-campus student rooms
Cranfield University, a postgraduate university in technology and management, has raised £150 million to fund additional on-site student accommodation and to enhance the student and staff experience.
The money was raised through a private placement arranged by HSBC, with three North American insurance companies providing the finance. It is repayable at different points over the next 30 years.
The funds will be used to create 865 new student rooms on the Cranfield campus. The first phase will be available from September 2021.
The finance arrangement will also be used to construct the Beacon, a new building at the heart of the campus. The 4,000 square metre building will include facilities for education, catering and social spaces.
Construction and fit-out of the Beacon is due to be completed in Autumn 2022.
Professor Sir Peter Gregson, Chief Executive and Vice-Chancellor of Cranfield University, said:
“I am delighted that we have successfully raised long-term finance, at very competitive financing terms, to invest in the future of the University.
“The new student accommodation and the Beacon will, together, have a very significant, positive impact on both the student and staff experience.”
The rest will be used to re-structure existing shorter-term borrowings and provide some scope to finance other investment opportunities as they arise.
Dominic Kerr, Managing Director and Head of European Corporate Origination, HSBC, said:
“Investment such as this is a real vote of confidence in Cranfield and its strategy, and the ultra-low coupons achieved bear comparison with the very lowest obtained to date by any UK Higher Education institution, underpinning an excellent financial platform for the University.”