Types of partnership solutions available to universities to modernise their residences We have seen a shift away from university-funded accommodation and towards partnerships, including JV, DBFO and other forms of partnership direct with funders (e.g. University of the West of England and Canada Life). With no end to the financial squeeze on universities on the horizon, we expect this to increase over time. SFG has described options for universities seeking a partnership solution in its series of research papers , notably ‘Student housing: university partnerships in the UK’ (2022) and ‘Student Accommodation Strategy Toolbox’ (2024). Since these were written, JVs have gained more traction through Unite Students’ partnerships with Newcastle University and Manchester Metropolitan University. Table 5.1 summarises the various types of PBSA in the market, ranging from university-owned at the top through to privately-owned at the bottom, with all the gradations of partnership in the middle. University risk and control gradually reduces from top to bottom. The number of universities considering major investments into their own residential estates with their own capital or through traditional borrowing has dwindled to a small minority. Most universities do not have the spending power to consider this option, and those that do (either through reserves or unused bond facilities) face strong internal competition for deployment of capital for academic or research investments that are not directly income-producing. A lack of capital, and a desire to minimise the impact of agreements on the balance sheet, will continue to be the primary driver for partnerships. There are many other secondary benefits to partnerships that universities enjoy, through access to experience and expertise in terms of planning, development, funding and operations. The structure of long-term partnerships also means that funders and equity providers insist upon sinking funds for lifecycle being in place, which universities have very rarely done due to pressures to reduce their operating costs. Page 38 | SFG | Meeting demand for modernised university-owned accommodation