University secures £100m investment in Portsmouth

The University of Portsmouth has successfully secured £100m of borrowing through a private placement from two North American institutional investors.

The funds will be used to support the first phase of the University’s estate development .

The funds will be used to support the first phase of the University’s estate development which will take place over the next five years. The transaction is the University’s debut capital markets issue and received strong interest from both UK and North American investors. Lloyds Bank acted as Placement Agent for the transaction.

The University has developed an extensive Estate Masterplan to be delivered over the next 10 to 15 years that aims to deliver a number of new, high quality buildings which will significantly enhance student experience and provide a modern environment for teaching, learning and research ambitions. Portsmouth is a city centre based University and the new developments will transform the University campus area as well as making a significant, positive impact on the City.

Professor Graham Galbraith, Vice-Chancellor of the University of Portsmouth, said: “The investment demonstrates confidence in the University’s future as well as the City. The concept designs for the indoor sports facility, which will be first of our new buildings, are stunning and I believe this will be a fantastic asset for the University, our students and staff, as well as for the people of Portsmouth. This sets the standard for what we want to achieve and is just the start of the future developments that will strengthen our University for decades to come.”

Donna Jones, Leader of Portsmouth City Council, said: “This investment is excellent news for the University and for the City. Not only will it create jobs, it will also help our University build on its current success. The fact that two North American institutional investors are prepared to lend one of the City’s institutions £100 million just shows how positive the international profile of the City is – and this will only raise it further.”

In addition to the indoor sports facility, the Masterplan phase one includes a flagship teaching and learning building where an international design competition will be launched before the summer to select the multi-disciplinary design team.  In addition, there will be an extension of an existing lecture theatre to create a new academic building with ancillary social learning space.

Leading the deal for Lloyds Bank Commercial Banking, Stephen Valvona said: “As a leading bank for private placements we were delighted to support the University of Portsmouth as they accelerate the next stage of their strategy. This transaction reflects the strong interest from institutional investors to support both the University of Portsmouth and the wider higher education sector.”

Today’s funding announcement builds on recent outstanding success for the University.  Portsmouth was one of only four universities in the South East region to be rated ‘Gold’ in the government’s Teaching Excellence Framework (TEF). According to The Economist’s own ranking of UK universities, the University does more to boost its graduates’ earnings that any other university in the UK.

The University was ranked 37th in the 2018 Guardian University Guide (having risen for the third successive year from 43rd in last year’s guide and 49th in 2016) and for the third consecutive year, it ranked in the top 100 young universities in the world, in the Times Higher Education ranking of universities which are less than 50 years old.

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