320 Lees Ave | 2x89m + 2x102m | 2x28f + 2x32f | U/C

[J.OT13]

Originally Posted by LeadingEdgeBoomer

JOT 13 wrote:


Many universities are looking to private investors to build residences. That makes me think that the model where universities build them ad collect revenues does not work anymore.

Part of the reason (not all of it) may be that universities are subject to a formula that puts a ceiling on how much debt they can carry. Much of that debt capacity is taken up to finance academic and research buildings--e.g. STEM, FHS, AMRC. Borrowing to build residences would put them above the ceiling and lenders would not go for that.

uOttawa may derive revenue by having private interests build on university land. They will probably lease the land to them.

Thanks for the explanation.