Canada Life Asset Management today announces it has completed a £30 million financing arrangement with the University of Kent.
The transaction is structured on the basis of a purchase of a long leasehold interest in three student accommodation blocks on the university's main campus. The transaction will see the University of Kent taking a lease back for 50 years at an initial rent of £1.33 million per annum, subject to annual indexed uplift to the Consumer Prices Index capped at 5%.
On expiry of the leaseback period, Canada Life’s leasehold interest is terminated for the consideration of £1.
Michael White, Head of UK Property, Canada Life Asset Management said: “We are delighted to be supporting the University of Kent with a significant facility of £30 million, to enable strategic reinvestment into the University. This 50-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.”
Trevor Pereira, Director of Estates and Commercial Services, University of Kent said: “This arrangement is an important part of our future plans for the campus, freeing up capital to support the ambitious programme of work in our next institutional strategy. Leveraging income through our estate is increasingly important, with Canada Life’s support providing immediate funds to support us in the years ahead along with the long-term security needed for our accommodation offer.”
ENDS
Notes to editors
- Established in 1965, the University of Kent has more than 17,000 students from over 150 countries across its Canterbury and Medway campuses. It is renowned internationally for the quality of its teaching and research, with many of its academic schools and centres being among the best in their disciplines. The University of Kent was ranked the 45th best University in the UK in 2024, as featured on The Times Higher Education List.
Enquiries:
Press enquiries should be directed to:
Elle McAtamney, Canada Life, 07913 568213, elle.mcatamney@canadalife.co.uk
About Canada Life Asset Management
Canada Life Asset Management is the brand for investment management activities undertaken by Canada Life Asset Management Limited, Canada Life Limited and Canada Life European Real Estate Limited. Canada Life Asset Management Limited (no. 03846821), Canada Life Limited (no.00973271) and Canada Life European Real Estate Limited (no. 03846823) are all registered in England and the registered office for all three entities is Canada Life Place, Potters Bar, Hertfordshire EN6 5BA. Canada Life Asset Management Limited is authorised and regulated by the Financial Conduct Authority. Canada Life Limited is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.
Please note that while Canada Life Asset Management Limited and Canada Life Limited are regulated as stated above, property management and the provision of commercial mortgages are not regulated activities.