Balfour Beatty has started construction of the West Slope Residences, a new student accommodation project, for the University of Sussex, having achieved financial close in December 2023.
Balfour Beatty Investments will invest equity of £32m, representing 81% of the £39.5m project equity, with the University of Sussex acting as a co-investor providing the remaining 19%.
Balfour Beatty Investments has also provided the funding strategy with £171m of wrapped bond financing being raised through a private placement.
Balfour Beatty will build the halls and maintain (operate) them for 54 years, getting its return on investment in facilities management fees, just like the old days of PFI. The DBFO procurement has gone out of fashion in recent years. The last DBFO contract that Balfour Beatty signed, before this one, was for the East Slope on the same campus.
The West Slope project will provide 1,899 bedrooms, a health and wellbeing centre, a refectory and retail facilities for students on the university's campus in Falmer, near Brighton.
Balfour Beatty will use modular construction techniques, building the modular steel frame and bedroom units offsite in a factory environment.
With the addition of the West Slope Residences, Balfour Beatty will have a portfolio of nearly 7,000 beds in development or operation across the UK procured through DBFO contracts.
Balfour Beatty Investments managing director Ion Appuhamy said: “The West Slope Residences is the most ambitious development programme the University of Sussex has undertaken in recent years, and will significantly contribute to and enhance the student experience.
“Building on the success of the East Slope Residences project, which we completed back in 2020, we now look forward to providing an additional campus for students whilst simultaneously showcasing our extensive experience in the design, funding and construction of high-quality accommodation and amenities.”
Allan Spencer, executive director of special capital projects, at the University of Sussex, added: “This project is critical to the university’s future success, ensuring all new students can live on campus.”
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