Staffordshire University Student Village – DBFO Partnership

QMPF acted as financial advisor to Staffordshire University for its student accommodation partnership with Staffordshire Campus Living. The project reached financial close in July 2024 and will deliver an innovative, low-carbon student village with approximately 1,000 beds and a student hub facility at the University’s main campus in Stoke.

Securing an off-balance sheet solution for the University, Staffordshire Campus Living is a consortium formed by Hochtief PPP Solutions and Plenary Group and is responsible for the Design, Build, Finance and Operation (“DBFO”) of the student village. The University will benefit from a minority equity stake in the project company, with senior debt funding provided by Aviva Investors through a long-term income strip arrangement. The project is targeting completion in advance of the 2026/27 academic year.

The transformational project is located at the University’s Leek Road campus and will feature cutting-edge and sustainable architecture near the University’s nature reserve and River Trent. The student village will provide 700 new student rooms, built in cluster blocks and town houses, alongside the refurbishment of 297 rooms at the University’s existing Clarice Cliff Court residences. Enhancing the student experience further, there will be a student hub facility, offering social spaces, study areas and a roof-top terrace with an outdoor seating area.

The development will target EPC ‘A’ ratings and includes roof-mounted photovoltaic panels, to generate on-site solar electricity, and air-source heat pumps. Willmott Dixon will act as contractor within the consortium and Pinnacle Facilities Management will support the operation of the new accommodation alongside the University.

Our involvement with the University dates back to the inception of the project in 2020. We provided initial financial modelling and advice on the options for delivering student residences through DBFO partnerships with private sector developers. Our financial and commercial advice continued through a soft market testing stage into the full procurement of Staffordshire Campus Living as partner and transaction support to reach Financial Close. The University was also advised by Womble Bond Dickinson on legals and Student First Group on procurement, operations and property matters.

Sally McGill, Chief Financial Officer and Executive Lead for Sustainability at Staffordshire University, commented on the significance of the project: She said: “This project represents a major milestone for Staffordshire University, significantly enhancing our student experience while prioritising sustainability. The innovative, low-carbon student village will provide modern, comfortable, and eco-friendly living spaces for our students, aligning with our commitment to environmental responsibility. We are grateful for QMPF’s expertise and guidance throughout this process.”