Cary, N.C. — Corvias Campus Living has secured $548.3 million in private financing to fund the initial phase of a public-private partnership (P3) with the Board of Regents of the University System of Georgia (USG).
Under the terms of the 65-year partnership, Corvias Campus Living will improve on-campus student housing at nine of the USG’s 30 campuses, including the development, construction, management and long-term maintenance of 3,753 new beds and 6,195 existing beds. This agreement marks the first time that a state system has privatized student housing across a portfolio of campuses.
The partnership includes at least $6.3M of up-front funding for capital repairs and renovations on all residence halls during the first year, and Corvias has already broken ground at six USG campuses for the new housing.
According to Corvias, the partnership will allow the USG to defease approximately $300 million in existing debt and build the new 3,753 beds without incurring additional debt
Over the life of the partnership, the ground rent, contingent rent, retained services, and reinvestment fund returned to the Board of Regents will be in excess of $8 billion.
Corvias has hired eight Georgia-based architecture, engineering and construction firms to assist with the USG student housing program, and will seek additional subcontractors. According to Corvias, students will begin seeing improved student housing as early as Fall 2015.