Financial services firm Canada Life Assurance Company has agreed to provide the University of Central Lancashire with a £30m loan. Under the terms of the finance lease, Canada Life will accrue the rent from three student accommodation blocks in Preston city centre for the next 40 years.

The three properties, Ribble Hall, Roeburn Hall and Whitendale Hall, comprise 184 flats and are capable of accommodating around 1,000 students. They are calculated to make Canada Life an initial return of £845,000 in rent, with an annual rental uplift ranging between 1% and 5%.

In turn, the University of Central Lancashire plans to use the £30m investment to help deliver on its strategic plan. This includes improving several university buildings, including student accommodation, as well as increasing the number of clinical facilities for medical science courses and 

On the expiry of the finance lease, the three properties will revert to the university. 

Michael White, head of UK property at Canada Life, said: “We are delighted to be supporting the University of Central Lancashire with a significant loan facility of £30m, to help in the delivery of its strategic plan”. He added, “This 40-year financing arrangement reflects Canada Life Asset Management's ongoing appetite to provide substantial, long-term facilities to high-quality sponsors that offer attractive income cash flows in support of our bulk annuity business."

Vice-Chancellor of the University of Central Lancashire, Graham Baldwin, said that they welcome the new relationship with Canada Life Asset Management. He added that they would be using the £30m of funding as part of their future capital expenditure on key initiatives, with aims to support the university’s strategic goal of providing their students with an improved colleague experience.