A £530 million redevelopment project to provide high-quality student living for University of Manchester students — with 3,300 rooms — has moved a step closer by reaching financial close.
The project will be delivered through an innovative 50-year partnership model between The University of Manchester, student accommodation investor Equitix, education sector contractor Graham, and specialist pensions insurer Rothesay.
Rothesay is providing majority funding for the project.
Rothesay said: “Bringing together expertise across long-term investment, development, construction and student accommodation operations, the partnership has been established to deliver, operate and maintain high-quality, sustainable student accommodation that will enhance the student experience while supporting the University’s long-term strategic objectives.
“The accommodation on the University’s Fallowfield campus will provide 3,300 new, modern rooms and shared social facilities. These include a student bar, bookable social and study spaces, music practice rooms and dedicated wellbeing facilities.
“The project is the world’s largest single-phase Passivhaus student accommodation development, combining exceptionally low energy demand, net zero carbon operations and a major programme of biodiversity, wellbeing and social value measures.
“It will be a wellbeing-led living environment designed around daylight, air quality, acoustic performance, accessibility, overheating protection and access to nature. The Fallowfield campus redevelopment project marks a significant investment into Manchester.
“It is expected to generate almost a quarter of a billion pounds in additional social return on investment, supporting new and sustained jobs, apprenticeships, local supply chain spend, business growth initiatives, employability skills, work experience, placements and funded student activities.”
The Fallowfield campus redevelopment project will be delivered in phases, with the first 1,000 rooms due to open in 2028. Subsequent phases, including additional accommodation and the central hub facilities, will be completed in 2029, with the remaining rooms becoming available in 2030.
“The financing model has been designed to enable major long-term investment in student accommodation while protecting the University’s ability to continue investing in teaching, research, student support and staff,” said Rothesay.
“Students living in the new accommodation will continue to receive strong University-led support, with University colleagues providing services including cleaning, ResLife support and security, while maintenance will be managed separately. This will help ensure a consistent and outstanding student experience across all the University’s halls.”
UK Government Minister for Pensions Torsten Bell said: “Britain needs to get back into the business of investing in its own future, and we are supporting the building, investing and innovating that makes that happen. This significant commitment to sustainable student housing in Manchester shows how institutional investment can achieve that while delivering strong long-term outcomes for savers.”
Barra Mac Ruairí, Chief Property Officer at the University of Manchester, said: “We are very pleased that by working in true partnership we looked for innovative solutions to opportunities and the inevitable challenges which working at such scale presents.
“Getting to this milestone was a tremendous endeavour. Our new Fallowfield residences are going to be among the most sustainable in the world and are designed to deliver an outstanding student experience. I’m looking forward to working with our partners as we continue to develop the site.”
Rothesay CEO Tom Pearce said: “Rothesay is committed to making high-quality investments that deliver real social and environmental value while securing the future for the nearly one million people whose pensions we protect.
“As the cornerstone funder of this innovative partnership, Rothesay is investing in the long-term future of the University of Manchester and its students.
“It highlights how our dedicated in-house origination team continues to provide long-term retirement certainty for Rothesay policyholders alongside supporting productive finance and economic growth across the UK.”
Equitix CEO Hugh Crossley said: “As one of the UK’s leading developers and investors in infrastructure, Equitix is proud to work alongside our consortium partners to reach this significant milestone.
“This is a true partnership with the University of Manchester, demonstrating that projects of this scale are built on shared ambition and long-term commitment.
“With extensive experience developing and investing in student accommodation, we recognise the important role high-quality living environments play in supporting students and university communities.
“We are particularly pleased to further strengthen our investment in the North West and will work hard to ensure the project delivers value for the benefit of the students, the University of Manchester and our investors for years to come.”
Neil McFarlane, Strategic Development Director at Graham Investment Projects, said: “Projects of this scale can only be delivered through strong collaboration between the public and private sectors, and reaching financial close is a major milestone that enables us to move into delivery.
“Significantly, Fallowfield is the largest Passivhaus student accommodation project in the world as well as being the largest pre-cast MMC-centred development in the UK, setting a new benchmark for sustainable development.
“We are proud to be at the forefront of delivering a project of this scale and together with our partners, we look forward to creating a development that will have a lasting positive impact for students, the local economy and Manchester for generations to come.”