Posted on 19/05/2015
Royal Holloway, University of London, has raised £80m to support investment in the development of its historic campus.
The investment will enable Royal Holloway to undertake an ambitious development of its 135 acre Surrey campus, complementing existing buildings and the university’s iconic Founder’s Building, which opened in 1886. At the heart of the development programme will be a flagship new library and student services centre. Other new builds include student residences, a new science building and a new music and media building. Royal Holloway will also invest in the refurbishment of some existing buildings and infrastructure improvements. In addition to the £80m that has been raised, the development will be funded by the university’s own cash reserves and future income.
One major investor, Pricoa Capital Group ("Pricoa"), provided Royal Holloway a mix of 20-, 25- and 30-year maturities, in a competitive process arranged by Barclays Bank PLC. The funds will be received in July 2015. Pricoa is a leading provider of long-term funding to UK and European companies and institutions.
Commenting on the private placement, Principal Professor Paul Layzell said: "Royal Holloway is one of the UK’s leading universities. To build on our position of strength, grow and continue to make a valued contribution locally, nationally and internationally, we must invest in and develop our historic estate to provide a 21st century campus that meets the needs of people studying and working at our university today.
"We have received very competitive pricing for this placement and it reflects Pricoa’s confidence in our growth strategy, commitment to academic quality and financial health."
Royal Holloway was supported in the private placement process by Mills and Reeve as legal advisers and QMPF as financial advisers. KPMG carried out an independent review of the capital structure and financial projections.