Project contractor Mount Oswald Colleges LLP is a limited liability partnership formed by student accommodation specialist Campus Living Villages and asset management firm Equitix, together with Durham University, which holds a 15% stake in the vehicle.
It will design, build, finance and operate two new college facilities on a 51-year concession. Construction of the colleges and other facilities will be undertaken by Interserve Construction.
The construction element is valued at £87m. Including rental income generated over the contract duration, the full deal is valued at £105m.
The facilities are being built on a site just to the south of the city that the university has bought and are scheduled to be completed in 2020.
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Interserve is responsible for designing and building the two new college facilities, totalling 1,000 bed spaces, as well as a new hub building for the university with a 300-seat banquet hall and sports and music facilities.
The hub building and multi-use games area are scheduled to come into use in autumn 2019 and the first students will move into the residential facilities in September/October 2020.
As part of the Durham University Strategy 2017-2027, academic programmes and colleges are being relocated from Queen’s Campus in Stockton to Durham, where student numbers will grow to a maximum of 21,500 by 2027 and 50% of students will live in collegiate accommodation.
Interserve chief executive Debbie White said: "We are delighted to have reached financial close on this project and look forward to starting on site imminently. This project builds on our extensive experience in the further education sector and our strong 15-year relationship with Durham University.”
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