Corvias Campus Living this month secured $548.3 million in private financing to fund the initial phase of a nearly 10,000-bed student housing partnership with the University System of Georgia. Under the terms of the 65-year arrangement, Corvias will improve on-campus student housing at nine of the system’s 30 campuses, including the development, construction, management and long-term maintenance of 3,753 new beds and 6,195 existing beds. This agreement marks the first time that a state system has privatized student housing across a portfolio of campuses, reported StudentHousingBusiness.com.
The partnership includes at least $6.3M of up-front funding for capital repairs and renovations on all residence halls during the first year. Corvias already has broken ground at six campuses for the new housing. Some of the improved student housing units will open as early as this fall.
Corvias stated the partnership will allow the Georgia system to defease approximately $300 million in existing debt and build new housing without incurring new debt. Over the life of the partnership, the ground rent, contingent rent, retained services, and reinvestment fund returned to the Board of Regents will be in excess of $8 billion.