Universities must continue with capital investments despite difficult financial times but should consider projects with flexible and civic purposes, according to the head of an institution that has transformed a defunct high street department store.

On 18 August, the University of Gloucestershire (UoG) will officially reopen a Gloucester city centre site formerly occupied by Debenhams as a campus space for teaching, research and community engagement activities.

It bought the building for about ?2 million in 2021 after the historic retailer went into liquidation and, in the time it has taken for the project to come to fruition, university finances across the sector have significantly deteriorated.

With many institutions selling off buildings and other assets to plug deficits, Clare Marchant, vice-chancellor of the university, said ongoing investment was still crucial to the success of universities.?

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The?former Ucas boss?told?̽»¨ÊÓƵ?that students are ¡°looking at facilities¡± when they consider where to study and, given the high cost of tuition fees, expect ¡°modern first-class facilities¡±.?

However, this kind of investment has ¡°become much more challenging since we bought it¡±, Marchant, who became vice-chancellor in 2023 as the project was already under way, conceded.

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The project has cost around ?75 million, mainly funded by the university, which recorded a ?2 million surplus in 2024, as well as through grants, including from the government¡¯s ¡°levelling-up¡± initiative.?

The redevelopment project encountered several challenges that saw the opening delayed by a year. Perhaps most significant was the discovery of a medieval burial ground on site and subsequent excavation of over 300 skeletons.?

As well as being home to the university¡¯s education, psychology and social work programmes, the building will be open to local residents to access shared facilities, including an arts, health and well-being centre delivered in partnership with the NHS and a new public library.?

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Marchant hopes the building will become a new income source for the university too.?

Of the approximately 20,000 square feet, around half will be rented out as office space to ¡°organisations that are in keeping with the values and the ethos of this building¡±, she said, adding that the university was also in conversations about community dentistry provision.

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¡°My belief, and it might be a little bit counter to where the sector¡¯s going, is that in terms of your estate and your facilities, you need to be able to flex it,¡± she continued, particularly in the face of a volatile student recruitment landscape, both internationally and at home.

¡°This idea that you own all of your estate, I think, is quite outdated. So looking at both physical estate and physical infrastructure and digital infrastructure and saying, ¡®how do we flex that?¡¯ as student recruitment changes, as technology changes, I think, is really important.¡±

She said the university is also looking to have a presence in a new cybersecurity-focused science park in Cheltenham next to GCHQ.?

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¡°We won¡¯t own any facilities there, but being part of the next generation of cyber development when GCHQ is on our doorstep, [is] super, super important to us and it means that we¡¯ve got some estate we don¡¯t own and we rent and so therefore¡­we¡¯re building in that flex.¡±

Alex McIntyre, MP for Gloucester, said local constituents are ¡°excited and optimistic about the investment in the future of our city¡±.

¡°Like many small cities across the country, our city centre has struggled in recent years,¡± he said.

¡°The key challenge is to ensure that it feels like the front doors aren¡¯t there, that local people will feel part of the life of the university and be able to access everything the city campus has to offer. Having seen the commitment and passion from UoG for this project, I have total confidence that they¡¯ll make this happen.¡±

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helen.packer@timeshighereducation.com