UPP wins bidding battle, securing £230million deal with University

22 Jan

The University of Reading will see its entire on-campus accommodation run by a private student accommodation provider in a £230.1 million deal.

UPP will manage 4,321 rooms under a 125-year agreement in the largest single private residential investment into a UK university. This will consist of the operation of 2,623 rooms of existing accommodation, for the 2011/2012 term, followed by a further 898 rooms currently under construction. 650 new rooms will be developed to complete the project.

The company work with eleven other universities, yet this deal is unique in its time scale – usually such agreements operate between forty and fifty years.

Acting vice-chancellor of Reading, Professor Tony Downes, said he was “delighted” with the deal, and believes it will add to the “high quality experience at Reading.”

The majority of the funding will be provided by Aviva, the UK’s second-largest insurer, marking its first large scale investment into the Higher Education sector.

Sean O’Shea, chief executive of UPP, said: “This deal shows that the higher education sector is bucking the trend, and is an attractive opportunity for investors.”

Mr O’Shea said the deal represents investor confidence in the Higher Education market during such turbulent economic times.

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