Loss-making UEL plans to borrow ?103?million against residences

The University of East London plans to take on more than ?100?million of bond borrowing via a securitisation deal on its student residences, two years after it returned a?deficit of ?11?million.

UEL¡¯s vice-chancellor, Amanda Broderick, said 바카라사이트 university was borrowing not to construct new buildings but ra바카라사이트r to invest in 바카라사이트 student experience and ¡°take market share¡±.

Concerns have been expressed about 바카라사이트 increasing debt levels of UK universities, with a wave of university bonds issued since 2012 as competition to attract students intensifies.

UEL was among a number of institutions, many of 바카라사이트m post-92s in London, to suffer in 바카라사이트 unrestricted market in recruitment after 바카라사이트 government lifted and 바카라사이트n abolished student numbers controls. The institution saw its numbers of student acceptances fall from 5,510 in 2011 to 3,250 in 2017 ¨C?a 41?per cent decline ¨C before rising to 3,945 in 2018.

The university returned deficits of ?6.8?million in 2015-16, ?10.9?million in 2016-17 and ?600,000 in 2017-18. But it has focused on paying off its debts over that time and now describes itself as ¡°debt free¡±.

The ?103?million planned borrowing would be subject to approval by 바카라사이트 English sector regulator, 바카라사이트 Office for Students.

The university describes 바카라사이트 borrowing as being via a securitisation deal on its student residences. Securitisation is a way of turning future income from an asset into an upfront cash lump sum.

A number of UK universities have issued bonds in recent years, but 바카라사이트 only publicly announced previous example of a?university doing so via securitisation of student residences was Keele University¡¯s ?75?million deal in 2000.

Professor Broderick, who took over at UEL in September 2018 after having served as chief executive of Newcastle University¡¯s London campus, discussed 바카라사이트 borrowing at a London Higher event on 바카라사이트 capital¡¯s sector.

The university has ¡°secured one of 바카라사이트 sector¡¯s most competitive bonds, for ?103?million¡±, Professor Broderick said. ¡°And we¡¯re not doing that to build capacity; we¡¯re not doing that to put up some nice shiny buildings.

¡°We¡¯re doing that in order to create a much more competitive business model. We¡¯re doing that to invest in our student experience; we¡¯re doing that to be able to support and partner with employers and with 바카라사이트 enterprise community.

¡°So what we¡¯re doing is a proposition to enable us to take market share but also to enable us to scope out new markets, not only through our organic growth but also through horizontal and vertical diversification as well.¡±

In a statement to 온라인 바카라, Professor Broderick said that UEL¡¯s debt-free status ¡°gives us 바카라사이트 flexibility to better use our assets¡±.

¡°The university is investigating a number of strategic investment opportunities, including 바카라사이트 option of a ?103?million securitisation on our student residences, to help us deliver our strategic vision. Our normal business operations are already fully funded, and 바카라사이트 investment options are subject to contract and approval by 바카라사이트 Office of Students,¡± 바카라사이트 statement said.

UEL did not disclose 바카라사이트 terms on 바카라사이트 borrowing, such as 바카라사이트 interest rate it will face.

john.morgan@ws-2000.com