The University of Law’s private equity owner is planning a string of property sales to provide ‘financial flexibility to support investment’.
The strategy emerged today after Britain’s first for-profit university confirmed it has sold off its prestigious Bloomsbury campus for £68m. It will continue to lease the site.
The freehold property in Bloomsbury comprises two parcels of land totalling 0.8 acres, on which there are four buildings totalling 86,000 sq ft with a mix of office and educational planning use. Schroder Real Estate Investment Trust and Schroder UK Property Fund have each acquired 50% for £34m.
The University of Law has entered into a new 12-year lease without tenant breaks at a rent of £2.9m a year.
Montagu Private Equity bought the former College of Law in 2012 for £180m. According to analysis of the university’s accounts earlier this year by the Times Higher Education Supplement, Montagu loaded the university with £177m in debt in completing the deal.
In a statement, the UoL said: ‘The University of Law is planning to reorganise its property portfolio in order to provide more flexibility for growth.
‘This will involve investigating the potential for sale and leaseback of some of its centres, which will provide financial flexibility to support our long-term investment programme to develop the university’s facilities and infrastructure, enhance the student experience and support new ventures.’