£30m Loan Granted to UCLan by Canada Life

Financial services firm Canada Life Assurance Company has agreed on a finance lease worth £30m with the University of Central Lancashire. Under the arrangement, Canada Life will accrue the rent from three student accommodation blocks in Preston city centre over the next 40 years.

The three accommodation blocks included in the deal are Ribble Hall, Roeburn Hall and Whitendale Hall, which collectively total over 1,000 student beds over 184 cluster flats.

Canada Life Asset Management will earn an initial return of £845,000 in rent from the properties, with an annual rental uplift ranging between 1% and 5%.

The University plans to use the investment to help deliver on its strategic plan, which includes improvements to University buildings as well as increasing clinical facilities for medical science courses.

The properties will revert back to the university on the expiry of the finance lease.

Michael White, head of UK property at Canada Life, said: "We are delighted to be supporting the University of Central Lancashire with a significant loan facility of £30m, to help in the delivery of its strategic plan. This 40-year financing arrangement reflects Canada Life Asset Management's ongoing appetite to provide substantial, long-term facilities to high-quality sponsors that offer attractive income cash flows in support of our bulk annuity business."

Graham Baldwin, the vice-chancellor of University of Central Lancashire, added: "We welcome this new relationship with Canada Life Asset Management to provide £30m of funding which will be used as part of our future capital expenditure on key initiatives to support our strategic goal of providing an improved student and colleague experience."