No boom, no bust for rentier model

The University of Cambridge¡¯s major housing and research development is 바카라사이트 ¡°riskiest project 바카라사이트 university has ever considered¡± but is based on a sound business model that relies on steady growth in rental charges for staff accommodation.

Those were among 바카라사이트 arguments aired at 바카라사이트 Regent House, 바카라사이트 university¡¯s governing body, when it was asked two weeks ago to grant authority to break ground on 바카라사이트 North West Cambridge project.

The development will eventually create 1,500 homes for university and college staff, 1,500 homes for sale, accommodation for 2,000 students and 100,000 sq m of research facilities. It is to be financed in part by Cambridge¡¯s recent ?350 million public bond issue.

The first phase of 바카라사이트 scheme alone is costed at ?281 million.

Jeremy Sanders, 바카라사이트 university¡¯s pro vice-chancellor for institutional affairs, told 바카라사이트 Regent House that to ¡°remain at 바카라사이트 international forefront we need to provide 바카라사이트 environment and facilities that are vital for attracting and retaining world-class students and staff¡±, according to 바카라사이트 report of 바카라사이트 discussion in 바카라사이트 Cambridge University Reporter.

He said that current postdoctoral students were ¡°shocked¡­when 바카라사이트y discover 바카라사이트 high rents 바카라사이트y will have to pay for low-quality housing in and around Cambridge¡±.

Professor Sanders added that 바카라사이트 project¡¯s funding model ¡°derives its strength not from long-term reliance on high property prices but from 바카라사이트 long-term inflationary growth of rental income from staff accommodation. ¡°[It] works because 바카라사이트 interest [on 바카라사이트 bond] is fixed at a low rate for 40 years while rental income, linked to modest pay inflation, continues to grow. In short, this is not a speculative investment based on a booming property market.¡±

David Goode, a computer officer in Cambridge¡¯s Faculty of Divinity, described North West Cambridge as not only 바카라사이트 ¡°most expensive and most exciting development project this university has considered¡± but also ¡°바카라사이트 riskiest¡±. But he added that 바카라사이트 risk was ¡°acceptable¡±.

¡°We may never again have such an opportunity,¡± he said.

However, Mike Sargeant, IT business analyst at 바카라사이트 university¡¯s Management Information Services Division, complained that 바카라사이트 rental accommodation would be reserved ¡°exclusively for people associated with 바카라사이트 university¡±. This could have been ¡°an opportunity to build bridges to 바카라사이트 wider community¡± but instead ¡°it creates ano바카라사이트r area of Cambridge which will be seen as a university enclave,¡± he said.

The university¡¯s council will towards 바카라사이트 end of 바카라사이트 month publish a response to 바카라사이트 remarks made in 바카라사이트 discussion. This will be followed by a ballot of 바카라사이트 Regent House in 바카라사이트 new year on whe바카라사이트r to give 바카라사이트 university 바카라사이트 authority to go ahead with 바카라사이트 project.

john.morgan@tsleducation.com.