Page 6: Conclusion
Tarmac is involved in the first PFI project in the education sector at the University of Greenwich. The construction of 664 bed spaces and catering areas at the Avery Hill student village cost £12 million and was opened in time for the 1996/7 academic year.
A single agreement was entered into between the University and Tarmac which involved the funding, design, construction, facilities management, catering and even summer letting of the accommodation. The university benefits from fixed costs over a 30 year period because the provision of the student accommodation and the costs are budgeted to be met by student rents. This results in a project which is designed to be self-financing. Ownership of the property will remain with the university without further payment at the end of the agreed term.
The finance was provided by Varsity Funding, a company established by Bankers Trust Company, Redheugh and PRICOA Property Investment Management (PPIM), a subsidiary of The Prudential Insurance Company of America.