£530m Fallowfield campus regeneration: Manchester PBSA scheme 2026

Key Points

• A joint venture between Equitix, GRAHAM, the University of Manchester and pensions insurer Rothesay has reached financial close on a £530 million redevelopment of the Fallowfield campus.
• The 50-year partnership will deliver 3,300 student bedspaces, a net increase of 900 rooms on the existing 24-acre site, with first rooms due in 2028 and full completion by 2030.
• Rothesay is providing majority funding for the project, which also includes 48,000 sq ft of amenities such as a student bar, study spaces, music rooms and wellbeing facilities.
• The development aims for Passivhaus certification, which would make it the world’s largest single-phase Passivhaus student accommodation scheme and the UK’s largest pre-cast modern methods of construction (MMC) development.
• Planning permission was secured in September 2025, with Gateway 2 approvals obtained in January 2026 for the first two higher-risk buildings.
• The scheme will be organised into five neighbourhoods with local hubs, landscaped courtyards and outdoor areas, replacing older accommodation including Owens Park Tower.

Fallowfield (Manchester Mirror) August 03, 2026 – A major public-private partnership has reached financial close on a £530 million regeneration of the University of Manchester’s uk/local/fallowfield/">Fallowfield campus, marking one of the largest purpose-built student accommodation (PBSA) schemes in the UK. The project brings together student homes investor Equitix, contractor and equity partner GRAHAM, the University of Manchester and pensions insurer Rothesay in a 50-year arrangement to deliver 3,300 modern student bedspaces and extensive new amenities across the 24-acre site.

As reported by Neil Tague of Place North West, financial close has been reached on the £530m project, in which Equitix, Graham and the University of Manchester will deliver 3,300 student bedspaces in a sweeping redevelopment of the student campus. The funding model is a 50-year arrangement between the partners, with the project now able to move forward after Gateway 2 approvals were secured for the first two higher-risks buildings within the campus in January. Pensions insurer Rothesay is providing majority funding for the project, which will see a comprehensive overhaul of the campus in Manchester’s student heartland.

How will the £530m investment transform student accommodation?

The redevelopment will add a net 900 beds to the south Manchester student campus, increasing capacity from the current level to 3,300 bedspaces organised across five distinct neighbourhoods. Along with the additional accommodation, the scheme includes 48,000 sq ft of amenities, including a student bar, bookable social and study spaces, music practice rooms and wellbeing facilities.

As reported by Neil Tague of Place North West, the student living space will be organised across five neighbourhoods, offering a mix of standard, premium and accessible rooms, supported by local neighbourhood hubs providing study spaces and launderette and postal services, alongside landscaped courtyards and outdoor areas. Barra Mac Ruairí, chief property officer at the University of Manchester, said:

‘We are very pleased that by working in true partnership we looked for innovative solutions to opportunities and the inevitable challenges which working at such scale presents. Our new Fallowfield residences are going to be among the most sustainable in the world and are designed to deliver an outstanding student experience.’

Tom Pearce, chief executive of Rothesay, added:

‘Rothesay is committed to making high-quality investments that deliver real social and environmental value while securing the future for the nearly one million people whose pensions we protect. As the cornerstone funder of this innovative partnership, Rothesay is investing in the long-term future of the University of Manchester and its students.’

What sustainability standards will the new campus achieve?

The partners and architect Sheppard Robson are aiming for Passivhaus status, which if attained, would make it the world’s largest single-phase Passivhaus student accommodation development. Neil McFarlane, strategic development director at Graham Investment Projects, said: ‘Significantly, Fallowfield is the largest Passivhaus student accommodation project in the world as well as being the largest pre-cast MMC-centred development in the UK, setting a new benchmark for sustainable development.’

As reported by Construction Enquirer, the redevelopment includes construction of 3,300 modern, high-quality student bedspaces, along with dedicated amenity space, ancillary residential dwellings and greenspaces. Five distinct neighbourhoods that celebrate local history and character, and a central hub as an anchor and heart of the campus, are features of the scheme. The project is being delivered by the Viridis Consortium – a partnership consisting of GRAHAM, Equitix and Derwent FM.

When will the new student homes be ready for occupation?

The campus redevelopment project will be delivered in phases, with the first 1,000 rooms due to open in 2028. Subsequent phases, including additional accommodation and the central hub facilities, will be completed in 2029, with the remaining rooms becoming available in 2030.

As reported by Construction Enquirer, demolition of the Owens Park Tower and surrounding buildings is ongoing and enabling works are progressing in preparation for the main construction programme, which will commence in 2026. The phased handover of buildings will allow students to move into their new homes at different points from 2027 through to 2030. GRAHAM has led the planning process in collaboration with the University of Manchester, architects, Sheppard Robson, and planning consultants, Deloitte.

Neil McFarlane, GRAHAM Project Director for the Fallowfield Campus, said: ‘The planning submission is a further important milestone for the Fallowfield Campus project. It is the culmination of months of challenging work and an intensive programme of engagement with the University, staff, students and the local community.’

How is the partnership structured and who are the advisers?

Rothesay said that the financing model has been designed to enable major long-term investment in student accommodation while protecting the university’s ability to continue investing in teaching, research, student support and staff. The university will manage services such a cleaning, security and wellbeing guidance, with site maintenance managed separately.

As reported by Neil Tague of Place North West, Osborne Clarke was legal adviser and Operis financial adviser to Viridis Living LLP, Equitix and Graham’s joint venture. Ashurst Perkins Coie and AECOM worked respectively as legal and technical advisers for Rothesay. Pinsent Masons and QMPF represented the university. Planning permission was secured in September last year for the scheme, with project documents viewable on the Manchester City Council planning portal under reference 142387/MO/2025.

Background of the Fallowfield campus development

The Fallowfield campus has been the subject of regeneration plans for several years, with the University of Manchester seeking to replace ageing accommodation including the iconic Owens Park Tower, which was taken out of service in 2021 and demolished between 2024 and spring 2025. In July 2024, Viridis, a consortium of Equitix, GRAHAM and Derwent FM, was selected as preferred bidder and delivery partner for the redevelopment under a Design, Build, Finance and Operate (DBFO) model.

The approved plans encompass the redevelopment of Owens Park, Oak House and Woolton Hall to meet the demand for student bedrooms in inclusive, safe and sociable surroundings. On completion, the wider Fallowfield campus will offer up to 5,400 student beds by replacing the existing older accommodation on-site and delivering 3,300 updated bedrooms to meet the growing demand for high-quality, modern bedrooms across the popular campus. In September 2025, Viridis Living secured planning consent for the redevelopment, with the consortium working closely with the University of Manchester, Manchester City Council and the local community.

Prediction: How will this development affect students and the local community?

The Fallowfield regeneration is likely to have significant implications for multiple audiences. For students, the addition of 900 net bedspaces and modern amenities should improve accommodation quality and availability, potentially reducing pressure on the private rented sector in south Manchester. The Passivhaus standard, if achieved, would mean lower energy bills and improved thermal comfort for residents, aligning with growing student demand for sustainable living options.

For the University of Manchester, the 50-year partnership model protects its ability to continue investing in core academic functions while outsourcing long-term accommodation investment and management to specialist partners. This could free up capital for teaching, research and student support services, though it also means the university will have less direct control over the student housing estate.

For the local community in Fallowfield and surrounding areas, the phased construction programme from 2026 to 2030 will bring temporary disruption from construction activity, but the completed scheme should reduce overcrowding in existing housing stock and improve the overall student experience in the area. The landscaped courtyards, outdoor areas and central hub facilities could also provide some community benefits, though the primary focus remains on student accommodation.

For the UK PBSA sector, the project sets a benchmark for large-scale sustainable development and the use of institutional funding from pensions insurers to deliver student housing, potentially encouraging similar partnerships at other universities.