FC for Michigan uni P3

Corvias has agreed financial close on the development of a university project in the state of Michigan.

Financial close has been agreed on the Wayne State University (WSU) P3, with Corvias agreeing a 40-year deal to develop, finance, construct, operate and maintain the university’s student housing.

Corvias will now begin managing all on-campus housing facilities and maintenance aspects. Wayne State will continue to operate all residence life and student-facing services.

Corvias will have 28 full-time employees working on WSU’s campus and will continue to work with union members to ensure a smooth transition of operations, the firm said.

The initial investment of $307.5m will be used to pay off $102m of existing housing debt and fund the continued construction of the new Anthony Wayne Drive Apartments, demolition of the Helen L. DeRoy Apartments and renovations to Chatsworth Apartments.

The deal will be funded by 100% debt, through predominantly 35 year bonds provided by institutional investors.

Gilbane is the construction contractor.