P3 Campus & P3 Financial Model Structuring
P3 Financial Model & P3 Campus
When selected as the developer, we have always succeeded in getting the project financed through P3 financial model or other structuring.
Servitas has delivered projects under a variety of transaction types and structures. We have extensive experience in Public-Private Partnership tax-exempt financing that funds 100% of project costs. As well as conventional structures using taxable debt and equity. Past project financings range from 112 beds at Northeast Texas Community College to 3,406 beds at Texas A&M University. Regardless of the option ultimately identified as the best suited for your college or university, Servitas can provide the financial solution.
Perks of a P3 Campus & Model
What’s the benefit of investing back into the education system? Historically, tuition, state grants, funding, and donations were the limited sources of funding the university systems could invest into infrastructure needs. With the P3 financial model or Campus, the university is able to diversify their income streams. This increases the amount of cash flow available for budgeting, without having to raise tuition for students.
Unlike a conventional delivery model that requires the public sector to fund a project throughout construction, a P3 consortium is responsible for financing a portion of or the entire capital cost of your project during construction and design phases. This means the school receives increased funding for research. This raises the level of facilities and staff, and can increase the credit rating of the school. This then allows the school to secure funds more easily on future infrastructure improvements.
With a P3 campus or financial model, it is not necessary to go through additional government reviews or budget approvals. This freedom also allows the school to be eligible for more government grants and increases their ability to secure corporate sponsorships. Each of these improvements mean better recruiting and retention on your student body, along with many other benefits!