P3 Financial Model & Structuring

P3 Financial Models

When selected as the developer by a college or university, we have always succeeded in getting the project financed, whether through P3 financial models or other structuring.

Servitas has delivered projects under a variety of transaction types and structures. We have extensive experience in Public-Private Partnership (“P3”) 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 Financial 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, the university is able to diversify their income streams, increasing the amount of cash flow available for budgeting, without having to raise tuition for the students. The school receives increased funding for research, raises the level of facilities and staff, and can increase the credit rating of the school which allows the school to secure funds more easily on future infrastructure improvements.

With a P3 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 means better recruiting and retention on the student body.