Interserve has won a £105 million contract for two new facilities at Durham University.
The outsourcer will design, build, finance and operate two new campus facilities over a 51-year period, acting as part of a consortium that includes Equitix, an asset management firm, and Campus Living Villages UK, a developer of student accommodation.
The Mount Oswald scheme will deliver 1,000 beds to the university and will include a new building with a 300-seat eating hall, as well as sports and music facilities.
Professor Stuart Corbridge, vice-chancellor at Durham University, said: “The development of two college facilities at Mount Oswald, including one brand new College and a purpose-built new home for our John Snow College, is a key project in delivering a wider student experience as good as anywhere in the world.”
The project is being built on a site acquired by the university to the south of the city, and is due to be completed in 2020.
Debbie White, Interserve’s chief executive, said: “We are delighted to have reached financial close on this project and look forward to starting on site imminently.
“This project builds on our extensive experience in the further education sector and our strong 15-year relationship with Durham University.”
Interserve announced last week that it swung to a loss as it continued to aim for £50 million in cost savings.
The company made a £6 million loss in the half-year ended June 30, as compared with a profit of £24.6 million during the same period last year.
The company’s restructuring programme, its so-called “Fit for Growth” initiative, is aimed at delivering £15 million in savings in 2018, with £8 million saved in the first six months of the year.