The University has today signed an agreement which marks a new direction in the management of the majority of its Halls of Residence. Its partners in the agreement are Sanctuary Housing Association, a charitable Industrial and Provident Society, and Glasgow Student Villages Ltd.(GSV), a company incorporated with charitable status and limited by guarantee. GSV has been established to acquire the residences and then to lease them back to the University for a period of 32 years.

The new arrangement has been entered into with the express agreement of the University Court, which has recognised it as being in the best interests of the University and of its students.

The sum released to the University (£47.5M) will allow the University to finance the construction of the new Queen Margaret Halls of Residence, to repay existing borrowings on other Halls and to create an endowment to provide support for students in the future.

GSV has entered into a facilities management agreement with Sanctuary Housing Association. Sanctuary will maintain and run the Halls of Residence to standards and specifications set out in the Agreement. The University will be represented on the board of GSV by the Secretary of Court.

The properties involved in the transfer are Cairncross House, Kelvinhaugh Gate, Kelvinhaugh Street, Murano Street, Queen Margaret Halls and Winton Drive. Other University Halls are not involved in the transfer.

Staff working in the Halls of Residence concerned will become employees of Sanctuary. Their conditions are protected by the provisions of TUPE - the statutory framework for the protection of employees' interests, covering such transfers of employment. Consultations, including meetings with employees and their representatives, have taken place regularly over recent months.

Professor Sir Graeme Davies, the Principal of the University, said: "This innovative partnership will fulfil our aim of securing the provision of high-quality reasonably priced student accommodation for students for the foreseeable future."

There will be no changes to existing arrangements for current residents in the Halls concerned.

Students who have been offered places in the Halls for next session will not be affected by the changes and the rental tariff will be as described in the letters they have received. The future processing of applications and the allocation of rooms will be handled as at present by the Accommodation Service and the University will retain its role as landlord to the student residents and continue to be responsible for their welfare and the collection of rents.

The University's Conference & Visitor Service will continue to market rooms out of term time as at present.

At the end of the 32 year period the University will have the option of buying back the halls for a nominal sum.

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Media Relations Office (media@gla.ac.uk)

First published: 21 May 2002