en.Wedoany.com Reported - The University of Manchester's Fallowfield student living campus redevelopment project has reached financial close. The £530m project, delivered jointly by Equitix, Graham, and the University of Manchester, will provide 3,300 student beds as part of the campus regeneration.
The financing model is a 50-year arrangement between the partners. The project was able to proceed after receiving Gateway 2 approval in January, which covers the first two high-risk buildings within the 24-acre campus. Pension insurance company Rothesay is providing the primary funding for the project.
The new beds represent an increase of 900 over existing capacity, alongside 48,000 sq ft of ancillary facilities, including a student bar, bookable social and study spaces, music practice rooms, and wellbeing facilities. The campus redevelopment is being delivered in phases: the first 1,000 rooms are scheduled to open in 2028, with subsequent accommodation and the central hub facility completed in 2029, and the remaining rooms opening in 2030.
Rothesay stated that the financing arrangement is designed to make a long-term investment in student accommodation while safeguarding the university's ability to continue investing in teaching, research, student support, and staff. The university is responsible for services such as cleaning, security, and health guidance, with site maintenance managed separately.
Barra Mac Ruairí, Chief Property Officer at the University of Manchester, said that the partners found innovative solutions to the challenges of a project of this scale, and reaching this milestone was the result of collective effort. He noted that the new Fallowfield residences will be among the most sustainable in the world, designed to deliver an exceptional student experience, and he looks forward to continuing to develop the site with the partners.
Tom Pearce, Chief Executive Officer of Rothesay, said that Rothesay is committed to making high-quality investments that deliver tangible social and environmental value while protecting the retirement benefits of its nearly one million policyholders. As the cornerstone funder of this innovative partnership, Rothesay is investing in the long-term future of the University of Manchester and its students, demonstrating how its dedicated proprietary origination team delivers long-term retirement certainty for policyholders while supporting productive finance and economic growth across the UK.
The project is designed by Sheppard Robson as architect, targeting Passivhaus certification. If achieved, it will be the world's largest single-phase Passivhaus student accommodation development. Neil McFarlane, Strategic Development Director at Graham Investment Projects, said that Fallowfield is the world's largest Passivhaus student accommodation project and the largest development in the UK centred on offsite manufacturing and MMC (Modern Methods of Construction), setting a new benchmark for sustainability.
Osborne Clarke is acting as legal counsel to the Viridis Living LLP, Equitix, and Graham joint venture, with Operis as financial adviser. Ashurst, Perkins Coie, and AECOM are acting as legal and technical advisers to Rothesay respectively, while Pinsent Masons and QMPF represent the university.
Upon completion, student living spaces will be distributed across five neighbourhoods, offering standard, premium, and accessible room types, supported by community hubs with study spaces, laundry facilities, and postal services, alongside landscaped courtyards and outdoor areas. Planning permission for the project was secured in September last year, and relevant documents are available on the Manchester City Council planning portal under reference number 142387/MO/2025.
