Jarvis to hand over responsibility for Lancaster residences
Lancaster University and the University Partnerships Programme (UPP) announced today that Jarvis plc will cease to have future responsibility for the construction of the residences project.
UPP, the specialist student accommodation provider now owned by the Alma Mater Fund, is responsible for managing the student residences programme at Lancaster and will continue to work in close partnership with the University to ensure the best long-term solution for it and its students.
Money has been released by the University’s funding partners to allow work on phase two to be completed using the existing site team.
Another fund has been created to allow a contract to be signed with an alternative contractor to complete phase three. It has already been announced that Norwest Holst is preferred bidder. A target has been set of January 31st to conclude contractual arrangements.
There is no financial impact on the University. The University is not being asked to contribute to either of the above funds and rent levels will not be affected.
The agreement was reached by the Alma Mater Fund, a joint venture between Barclays Private Equity and 3i, Jarvis plc, the banks and the bondholders for the project.
Andrew Neal, Director of Finance at Lancaster University said: “The practical implication is that money will now flow for the completion of phase two. We will be able to put in place a clear plan for phase three and Jarvis will not be involved in the construction.
“This is an important step towards putting the project on a firm footing for the future and ensuring that it will be completed in full. It protects the interests of students and of the University.”