Legal & General has entered a deal with the University of Oxford to provide up to £4bn of funding for student and staff accommodation.
The 10-year partnership will deploy money from the UK insurance company’s shareholder and annuity funds, and from funds managed by its investment arm, Legal & General Investment Management.
The funding, which will be delivered across the next 10 years, will be delivered by Legal & General’s Future Cities division, which has already funded the creation of more than 1,000 new homes in cities including Cardiff, Newcastle and Leeds.
Legal & General said it is working “50-50” on the project alongside the university, and could replicate the joint venture with other educational institutions in the future.
Group chief executive Nigel Wilson said: “Oxford University is one of the best in the world. It has inspired generations of academics and researchers, and today nurtures outstanding modern businesses with world-leading potential.
“Our partnership with Oxford University is leading the way in bringing together dynamic cities and patient capital, creating great outcomes for long-term investors and for the cities themselves.”
Professor Louise Richardson, vice-chancellor of the University of Oxford, said: “My colleagues and I are delighted to have formed this partnership with Legal & General.
“We look forward to working together to address some of the most pressing challenges facing the university today.
“We will build much-needed graduate accommodation, subsidised housing for university staff, and new science parks, where academic departments, university spin-outs and commercial partners can work together to create new companies as well as high-quality jobs.”
