Corvias and University System of Georgia Partner on Innovative $517M P3 Deal
- Nov 18, 2014
Atlanta—Corvias Campus Living has been picked by the Board of Regents of the University System of Georgia to develop, construct, manage and maintain student housing in the first phase of a public-private partnership, which will include 3,683 new beds and 6,195 existing beds totaling more than 3 million square feet across nine of the USG’s 31 campuses.
The joint venture is the first time ever that a state system has initiated the privatization of student housing through a portfolio of campuses.
“We applaud Georgia and the Board of Regents for taking such an innovative leadership position in solving today’s student housing challenges,” Kurt Ehlers, Corvias Campus Living’s managing director, says. “The partnership focuses on doing the right thing—providing affordable on-campus housing for USG students while also setting the stage for positive change in student housing. We look forward to working with the BOR to enliven the true meaning of a partnership.”
Under the terms of the deal, Corvias will construct 3,683 new beds across seven of the nine privatized campuses, with each tailored to the needs of each individual school. It will dually be responsible for managing the operations of the new housing facilities, as well as the 6,195 existing beds for the duration of the 65-year partnership.
“Quality, safe, affordable housing for students is our priority,” Chancellor Hank Huckaby, says. “We expect our initiative will generate innovation, operating efficiencies and best practices in student housing to improve the quality of the on-campus housing experience for our students.”
According to Ehlers, Corvias’ unique P3 model offers long-term financial, operational, construction and design components, creating significant benefits, that include performance-based fees; a reinvestment account that is projected to exceed $2 billion over the life of the partnership that will ensure that all facilities are left in like-new condition at the end of the 65-year program; and $5.6 million of up-front funding for capital repairs and renovations to take place in the first year on existing housing.
Corvias has a great deal of experience in successfully executing large-scale housing programs through existing partnerships with over $170 million per year of construction projects and the addition of 4,500 beds annually, all executed within the same P3 framework proposed for USG.