Lucy Cavendish College, Cambridge

This strategic transaction will save the College approximately £1m annually in rent liabilities and secures ownership of the 117-year lease interest.

The acquisition also ensures the College can purchase the interest for just £1 upon the expiry of their funding agreement with Macquarie Asset Management, safeguarding their long-term financial future.

This complex deal required overcoming significant market competition to secure the property and aligning the College’s income strip funding with the acquisition. Without this purchase, the College would have faced a £5m annual rent roll, increasing by RPI over the next three years, with further exposure to market rent fluctuations upon lease renewal. Instead, the College now has full control over this critical asset, ensuring financial stability and long-term certainty.

Lucy Cavendish College was delighted with the outcome, recognizing the substantial cost savings and the opportunity to own the property outright.