Eiffage close first ‘Operation Campus’ PPP

Grenoble University has become the first of France’s circa €5bn public-private partnership university programme to reach financial close. CDC, NordLB and Societe Generale provided debt for the €62m project.

French developer Eiffage has reached financial close on the first project to form part of France’s €5 billion ‘Operation Campus’ university public-private partnership programme (PPP), the firm announced recently.

The project – known as the Grenoble University PPP – will cost around €62 million and will see Eiffage build and maintain a new university campus capable of handling 1,450 students and 550 university and administrative personnel. The new facilities are expected to be ready in 2015, Eiffage said.

Caisse des Depots et Consignations (CDC), through savings unit Fonds D’Epargne, NordLB and Societe Generale are providing €57 million of debt for the project. The facilities break down into a three-year, €54.5 million construction loan provided by the two commercial banks; a three-and-a-half year, €2.2 million VAT facility; a 26-year, €48 million tranche; and a 15-year, €9.5 million facility.

The last two tranches will refinance the construction loan, with CDC contributing €20.5 million of the €48 million facility.

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France’s ‘Operation Campus’ programme aims to modernise and group various universities across France into 12 large-scale campuses.