By Simon Dodd & Joe RukinIt's been a fairly poor week for Halls of Residence news.
At the University of Liverpool, bosses are plotting to sell the entire Carnatic Halls of Residence site in Mossley Hill. These six halls currently accommodate 1,347 students, the majority of whom are in their first year. The University has already annouced the closure of one 245-room Halls, with another 207-room building lined up for the chopping block. There are also proposals to close a third, the self-catering Philharmonic Court, and sell the land to a developer for the construction of privately-run halls. Interestingly enough, the University appears to believe that it has far too much spare capacity to maintain these three properties- and yet believes that private contractors will risk money to build private halls....Which is an unusual interpretation of reality versus capitalism, to say the least. Since Liverpool are so concerned about not having enough students, perhaps we could wonder if Liverpool will be the next University to come out against fees- since their applications have been in freefall since 1998?
Meanwhile, further north, Glasgow University has sold six of their Halls to a private developer, for the princely sum of $60m. The 32-year lease will "contract out" the properties involved - Cairncross House, Kelvinhaugh Gate, Kelvinhaugh Street, Murano Street, Queen Margaret Halls and Winton Drive - to Sanctuary, a UK social housing landlord. The University claims that this allows it to maintain overall control, while minimising its spending requirement. In return, student rents will go to GSV rather than the university for the duration of the contract- 32 years. Glasgow University will receive about £50m of the money upfront, to spend on what it likes. Next years accounts for Glasgow should make for interesting reading!
Michael Yuille, finance director of the university, said:
"As well as providing students with high-quality, affordable accommodation, this arrangement allows the university to transfer all of the property risks of these properties, receive both a large upfront sum and an attractive revenue stream while retaining ultimate equity in the buildings."
Glasgow University has accommodation for about 3500 students in halls of residence, student houses and flats; this deal will move the bulk of this figure into the private sector.
And dropping back south to complete a nice little triangle, the University of Huddersfield is selling off what it has left of it's halls of residence. Despite the halls being profitable (bringing in £3.2m plus £700k from commercial activities on the site). The University said they 'hope' the two sites, Ashenhurst & Storthes Hall, which house 1661 students, will remain student accomodation after the sale. A spokesperson said;
"The overall aim in seeking to sell is to release resources for core activities and to significantly reduce the level of borrowings on the student village."
IC Huddersfield, University to sell its halls
