University of Nottingham to Sell £80M Castle Meadow Campus

The University of Nottingham has announced plans to sell its Castle Meadow Campus, a project that has cost over £80 million, just months after opening its latest section. The decision follows a reassessment of the institution’s financial priorities and comes amid ongoing fiscal challenges, including an annual operating cost of approximately £100 million.

In a message to staff on November 26, Gary Moss, the university’s Director of Estates and Facilities, confirmed that the university will cease operations at the Castle Meadow Campus within weeks. This campus, located in Nottingham, was acquired in 2021 for £37.5 million, with plans to transform it into an “enterprise campus” that would integrate academic research with business opportunities.

The university has faced criticism for its investment in the Castle Meadow Campus, which was originally expected to cost £45 million over ten years. Unions have argued that the financial strain from this project has contributed to job cuts within the institution. Earlier this year, the university announced its intention to sell the King’s Meadow Campus, indicating a broader strategy to streamline operations.

Nottingham’s financial landscape has significantly changed, prompting the university to reassess its strategic priorities. A spokesperson for the university stated, “While we are making difficult decisions on resizing our workforce and reducing our curriculum, we cannot commit ongoing budget to spaces and buildings which no longer align to our strategic priorities.” The sale of the Castle Meadow Campus is seen as a necessary step to reduce operating costs and refocus resources on enhancing the teaching and research environment for students and staff.

The university’s decision comes just days after it was reported that several courses would be cut, a move that local MPs have warned could have a “profound impact” on the city. The Castle Meadow Campus was intended to include facilities for KPMG, which later withdrew its plans to occupy the site. Currently, only two buildings are occupied by the university, both of which are set to close shortly.

The Central Building, which opened in September 2023 and hosts Nottingham Venues, a subsidiary of the university, will also be shuttered. The university’s Innovation Park, which occupied part of the campus, will follow suit. Despite the closures, two external tenants, Arden University and Nottingham College, will remain on site during the sales process.

Last year, the University of Nottingham reported a loss of £17 million, attributed to increased expenditures and a decline in the number of international students. In response to financial pressures, the university initiated its ‘Future Nottingham’ restructuring program, aimed at right-sizing its workforce and reducing non-pay costs. Moss emphasized the need to develop a clear set of proposals to navigate the challenges facing the UK higher education sector.

“Our ambition is to deliver a 5% annual surplus by 2029/30,” Moss stated. “Key to this is the programme of work to shrink our non-residential estate by 20%. This will reduce our operating costs and provide us with the necessary flexibility while we are still spending more than we earn.”

The University of Nottingham’s decision to divest from the Castle Meadow Campus highlights the institution’s ongoing efforts to adapt to a changing financial environment while continuing to prioritize high-quality education and research capabilities.