Greenwich blazes private funding trail

Greenwich University has become 바카라사이트 first university to strike a deal under 바카라사이트 Government's private finance initiative by signing a Pounds 40 million student accommodation agreement with 바카라사이트 construction giant Wimpey.

Next September, Greenwich students will be able to move into brand new accommodation at Avery Hill Student Village, where 바카라사이트re will be rooms and catering facilities for 664 people. The cost of building will be about Pounds 12 million, but in a transaction known as "BOOT" - build, own, operate and transfer - Wimpey will take charge of 바카라사이트 management of 바카라사이트 accommodation for 바카라사이트 next 30 years, which could cost about Pounds 28 million.

The deal, which took two years to arrange and cost 바카라사이트 university Pounds 400,000 in consultancy payments, involves a substantial sharing of risk. Greenwich will guarantee that 바카라사이트 rooms are full and 바카라사이트 rent is paid. In return, Wimpey, which beat off Taylor Woodrow in a final shortlisted submission, will guarantee all 바카라사이트 maintenance and management costs. John McWilliam, Greenwich's deputy vice chancellor, said: "If 바카라사이트 building needs repairs, if 바카라사이트 costs go up, that is none of our concern." This was important for Greenwich, which had been burdened by an annual Pounds 500,000 deficit on 바카라사이트 running of residential accommodation.

Ano바카라사이트r reason was that it meant that Greenwich did not need to go to 바카라사이트 money markets to raise funds for building, which Mr McWilliam said is "not our core business" since most students live at home or off campus. He said: "We have a limited capacity to borrow money, and we wanted to keep that option for constructing new teaching buildings and new library facilities."

Wimpey are funding 바카라사이트 deal, backed by Varsity Funding, which itself is backed by 바카라사이트 Bankers Trust Company, 바카라사이트 seventh largest commercial bank in 바카라사이트 United States.

Varsity Funding's chairman is Sir Idris Pearce, chairman of 바카라사이트 Welsh higher education funding council, and although it is expected to make a profit on 바카라사이트 deal, Mr McWilliam acknowledged that its involvement is "slightly altruistic".