EG Company Lands $517m Deal with Georgia University System

East Greenwich’s Corvias Group recently announced a $517 million deal to develop and manage student housing for the University System of Georgia for the next 65 years.

The enormous public private partnership will include the construction of 3,683 new beds, 6,195 existing beds and more than 3 million square feet across nine of USG’s 31 campus in the first phase alone.

The deal marks the first time a state system has privatized student housing across multiple campuses with one company, the company said in a release.

Corvias was chosen by the Board of Regents of the University System of Georgia thanks in part to Corvais’ experience managing large-scale housing programs for the U.S. Military.

“Quality, safe, affordable housing for students is our priority,” said Chancellor Hank Huckaby. “We expect our initiative will generate innovation, operating efficiencies and best practices in student housing to improve the quality of the on-campus housing experience for our students.”

“We applaud Georgia and the Board of Regents for taking such an innovative leadership position in solving today’s student housing challenges,” said Kurt Ehlers, Managing Director of Corvias Campus Living. “The partnership focuses on doing the right thing – providing affordable on-campus housing for USG students while also setting the stage for positive change in student housing. We look forward to working with the BOR to enliven the true meaning of a partnership.”

Under the terms of the deal, Corvias will be compensated in part through performance-based fees and the company will establish a $2 billion reinvestment account to “ensure that all facilities are left in like-new condition at the end of the 65-year program.”

The fund will allow each building to undergo minor and major renovations and full replacements five times without requiring additional capital.

Corvias will also provide $5.6 million of up-front funding for capital repairs and renovations to take place in the first year of the deal, enabling all residence halls to see improvements.

Corvias has also pledged to hire locally in Georgia and has already hired seven firms for the project.

The company’s portfolio in total includes 26,145 units and 82,807 beds from Alaska to Florida, including 13 military installations where they manage housing. At Fort Bragg in North Carolina, housing area covers 251 square miles alone.

Photo: A rendering of one of the proposed new student housing facilities. (Courtesy: Corvias Group)