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The Board of Governors (BOG), responsible for planning and coordinating Pennsylvania’s State System of Higher Education’s development and operation, approved acquisition of affiliate housing by Millersville University for an estimated $146 million during its April 15 meeting.
The acquisition will result in a savings of approximately $60 million over 27 years because the bonds’ interest rate will drop from 4.95% to 2.8%. Millersville’s Council of Trustees (COT) already approved this acquisition during their March meeting.
“The approval to acquire The Villages; South, East and West represents a trend in higher education for colleges and universities,” says Guilbert Brown, vice president for finance and administration at Millersville. “Saving almost $2 million a year makes sense during these challenging fiscal times.”
Student Services, Inc. (SSI) currently owns the bonds on the Villages. SSI and Student Lodging, Inc. will continue to operate Brookwood Court and the Healthy Living apartments.
“The University appreciates the great relationship we’ve had with our colleagues at SSI and we look forward to working together for many more years,” says Dr. Daniel Wubah, president of Millersville University.
The transaction is expected to take place by the summer of 2021.
