Case study: Trafford College Group (TCG)
How Trafford College Group’s transformational estates strategy is contributing to the successful recovery of Stockport College.
The Trafford College Group (TCG) is a college corporation made up of:
- Trafford College
- Stockport College
- The Cheadle College
- Marple Sixth Form College
One of the pre-conditions for the merger in 2018 between Trafford College and Stockport College was financial support for transformation of the Stockport campus.
Redevelopment of the Stockport campus is ongoing and once completed, it will:
- improve the learning environment for staff and students
- allow for increased student numbers
- contribute towards achieving an Ofsted rating of Good or better at the next inspection
- secure ownership of the main Stockport campus properties
- improve the energy efficiency of its buildings
- remove surplus floor space
TCG is a medium-sized college corporation in Greater Manchester. The group has expanded as a result of mergers between Trafford College and:
- Stockport College in April 2018
- Cheadle and Marple Sixth Form College in May 2021
It has:
- 5 main campus sites within Stockport and Trafford
- an annual turnover of £39 million
- 11,000 students
- a Financial Health rating of Outstanding in 2020 to 2021
Before the merger, the Ofsted inspections had judged overall effectiveness as:
- Trafford College: Good (September 2017)
- Stockport College: Inadequate (January 2018)
- Cheadle and Marple Sixth Form College: Requires Improvement (March 2019)
The February 2022 Ofsted monitoring report confirms reasonable progress on all themes.
The gross internal area of TCG is 67,149 square metres. Of this, Stockport College makes up a gross internal area of 21,570 square metres.
Of the total TCG estate:
- 66,284 square metres is freehold
- 865 square metres is leasehold
The total annual running costs of the estate are £3.5 million per year.
Estate condition as of December 2021
The estate condition is broken down into 4 categories.
| Condition category | TCG estate in category | Stockport estate in category |
|---|---|---|
| A | 6% | 14% |
| B | 73% | 69% |
| C | 15% | 0% |
| D | 6% | 17% |
Please note that the TCG figure includes the Stockport campus.
Functional suitability as of December 2021
Functional suitability measures the extent to which a space meets its required use.
| Category | TCG estate in category | Stockport estate in category |
|---|---|---|
| Very good | 14% | 14% |
| Good | 66% | 69 % |
| Satisfactory | 15% | 0% |
| Unsatisfactory | 6% | 17% |
Please note that the TCG figure includes the Stockport campus.
Despite Stockport College’s previous capital investment of £38 million between 2007 and 2015, the main campus had several challenges at the time of merger, including:
- most of the buildings were in a poor condition (68% in category C)
- the estate was too big for the number of students (space utilisation circa 10%)
- the suitability of many buildings was poor
The college had sold most of the Wellington Road campus to the Homes and Communities Agency (HCA) with a 5-year leaseback. This was on the assumption that it would have new fit for purpose premises in the town centre by 2021.
The Trafford and Stockport merger was due to be completed in April 2018, with the development of the Stockport campus being a condition of the merger. At the time, Stockport Council favoured the option to build a college campus above a new bus interchange.
Before the merger, the college was required to complete a reassessment of the preferred property solution at pace, working with:
- Stockport Council
- Greater Manchester Combined Authority (GMCA)
- Education and Skills Funding Agency (ESFA)
- Transaction Unit
- HCA, the owner of the Stockport campus freehold since 2016
- Barclays, the main lender to Trafford College
Refurbishment and redevelopment
As part of is merger proposals, TCG secured financial support for a £23 million redevelopment of the main Wellington Road campus in Stockport. This redevelopment involved:
- repurchasing the properties sold to the HCA
- constructing new buildings
- refurbishing parts of the existing estate
- demolishing some of the estate
- selling surplus buildings for redevelopment whilst at the same time maintaining business as usual for students
The target completion date was originally September 2020, but due to delays the redevelopment is now expected to be complete by December 2022.
This is due to:
- unforeseen complications with asbestos removal despite having an up-to-date asbestos register
- changes to the design of the new estate, partly to avoid increased cost
- the inability to reach financial close with the original contractor
- financial failure of the second contractor
- COVID-19 complications during lockdown
By summer 2020 the completed works were the refurbishment of the Vernon Tower (3,131 square metres) and the construction of the Vernon Workshop (2,806 square metres), which is an arts workshop and classroom space.
The listed Greek Street building (2,318 square metres) and university centre (1,822 square metres) were sold to a developer, and the Lyme Centre (10,942 square metres) was leased back to the college pending the completion of the new build.
The final stages of the redevelopment at Stockport include:
- all campus buildings being of category A or B condition
- removal of around 8,000 square metres of surplus floor area
- achieving the BREEAM Very Good or Excellent standard for all buildings
- creating a compact campus that delivers all teaching on a single site owned by the college corporation
Despite the delays to final completion, the project finances remain on track due partly to higher than planned capital receipts from the sale of surplus land and buildings. Student enrolments at Stockport have remained stable during the construction phase.
The strategy delivered the project for Stockport College without destabilising the group’s Financial Health rating which was self-assessed as Outstanding in 2020 to 2021.
Strategic Property Working Group
The corporation established a monthly Strategic Property Working Group to oversee and advise on the project. The group only had an advisory role but is supported by the corporation secretary.
Accommodation strategy
In the accommodation strategy, the TCG have listed 5 key principles:
- alignment to requirements of the labour market and GMCA priorities
- focusing on high quality, excellence and innovation
- partnership working with local employers, councils and other stakeholders
- technical specialisation at Level 3 and above aligned with national and local priorities
- inclusion of learners with poor prior attainment and special educational needs (SEN)
As part of its merger implementation strategy, the group has reorganised teaching across the Trafford and Stockport campuses by:
- concentrating specific teaching in one location, for example A levels in Altrincham, and construction in Stockport
- removing teaching that had low student numbers, for example performing arts
- launching new teaching, for example T levels in marketing and sales, and the Professional Development Centre in Stockport
These approaches have reduced surplus space and ensured sustainable class sizes.
Space use
The redevelopment of the Stockport campus has reduced the overall size by 30%, from 27,500 square metres to 18,700 square metres. The redevelopment has helped to:
- limit spending on new build or refurbishment work
- generate part-funding for the project by selling unused land and buildings
- end responsibility for the listed Greek Street building
- reduce the ongoing running costs and maintenance requirements (though rising energy unit costs are expected to impact this)
In 2018 the group had an external consultant complete a physical room use survey. It showed very low overall use at under 11%.
The consultant suggested that room use could be improved by looking at timetabling of classes and flexible working strategies. The overall target for space use is 40% by 2023 to 2024 (the first full academic year following completion of the project).
Options and investment appraisal
The group tested the case for moving the college to the bus interchange as part of the process for securing GMCA funds. They looked at 3 options:
- do nothing
- relocate to another site
- a major new build on the current site (the final preferred option)
The group completed net present value (NPV) assessments to support the preferred option using the ESFA model. As part of this process detailed work was completed to:
- test the feasibility of the different options
- explore alternative sites
- get external advice on the condition of existing buildings
- estimate costs of the options
The NPV analysis supported the non-financial case for the preferred option and was helpful in securing capital grant support.
Condition surveys
The college completed condition surveys by professional advisors. These surveys were important to:
- demonstrate the need for financial support
- make the case for refurbishment of specific buildings on the site rather than replacement
- inform the likely costs of the refurbishment
- help develop the plan to complete the project
Project management and planning
A project manager is overseeing the project and reports progress to the Strategic Property Working Group (SPWG) which continues to meet monthly. The meetings are chaired by the project sponsor, the Vice Principal of Corporate Services and Planning. The group includes:
- a project manager
- an architect
- civil and structural engineers
- mechanical and electrical engineers
- quantity surveyors
- a principal designer
- a BREEAM consultant
- the main contractor
The group maintains a range of documents so it can monitor progress. These include:
- a redevelopment project plan to record progress
- reports from the project manager
- a decant plan to limit disturbance to students, staff and visitors
- a project risk register which is reviewed monthly by the team and the SPWG
Site disposals
The Stockport College site was important to the council’s town centre strategy, especially given the preference for the planned bus interchange site. The group worked with the planning authority to plan possible options before then making specific proposals.
The group agreed a disposal outline to ensure a smooth passage for planning approvals and set out the best plan for the sale of surplus property.
The group did not make assumptions about the sale of the properties. This kept the risk of a delayed sale to a minimum. In the event of a sale, the college secured a greater and earlier financial outcome than assumed at the time of the merger.
Building management system
The campus redevelopment included a new building management system (BMS) across all buildings. The system:
- controls all heating, ventilation and lighting
- captures maintenance requirements
- reduces energy usage and costs
- reduces the carbon footprint of the college
- ensures a comfortable environment for staff and students
There have been several immediate benefits due to the college’s investment.
Students
Students have benefited from a better suited learning environment that has:
- state-of-the-art IT facilities
- an easily accessible location
- specialist facilities and learning resources
Staff
Staff have experienced improved morale due to:
- the modern, attractive and more comfortable environment with state-of-the-art IT facilities
- security of the long-term presence of the college in Stockport
Stockport College and TCG
The college and TCG overall now have:
- improved curriculum efficiency
- reduced running costs
- more money available for activities for students
- freehold ownership of the main Stockport campus
- secured the financial sustainability of the Stockport campus by stabilising student numbers
Employers
The project has increased a specialist workforce in automotive, construction and engineering in Stockport.
Wider community
The wider community has benefited from the project by securing the long-term presence of the college in Stockport, which has kept its accessible location.
The TCG reported a number of lessons learned from the project which can improve future practice.
Contingency planning
Contractors faced challenges removing asbestos from some of the older buildings despite having asbestos registers, which showed the importance of having contingency plans for refurbishment projects.
Leaseback property
The sale and leaseback of most of the campus before the merger was a high-risk strategy. It was decided before an affordable property solution was found. In the end, the decision was reversed which cost both time and money.
Cost models
Cost models have been useful for colleges when deciding their accommodation strategy, though the most recent update of the DfE cost model is 2018.
Sustainable energy
The college achieved the BREEAM standard of Very Good or Excellent, but relied on gas for its new heating system due to cost constraints. There is minimal use of renewable energy sources on campus. TCG would welcome a long-term and sustainable energy strategy that makes renewable technologies more affordable for colleges whilst major projects are underway rather than having to fund separately as retrofit.
Tendering process
The group issued tenders for the main construction work at RIBA design stage 3. The group would recommend progressing to at least design stage 4 before tendering so that there is the necessary detail of the specification and user requirements of the building.
Physical room use survey
TCG remains convinced of the benefits of a physical room utilisation survey rather than relying solely on timetable data to assess space utilisation. During COVID-19 reliable space utilisation data has been more problematic and social distancing has resulted in less efficient use of space. The college is planning to undertake a comprehensive physical room utilisation survey in 2022 to 2023 to provide a robust and detailed assessment of space utilisation.
The college is investigating scanning technologies for more accurate and efficient collection of room utilisation data in the future.
Design and build solutions
The group used a design and build solution for the Stockport development which the college considers has worked well. The college were keen to retain ownership and control of the main campus so took a conscious decision not to go down a developer-led route.
“The Board of the Corporation and leadership team recognised from the start of merger discussions with Stockport College, that a transformational property solution was necessary. This was not just to address the poor quality of the accommodation or to improve the efficiency of the estate but because we believed it was central to the overall recovery plans for Stockport College. For this reason, the Board of the Corporation took the decision that the delivery of a substantial new development or redevelopment of the existing campus must be a condition of merger.
In common with many major capital projects, there have been times when we have faced project challenges but by maintaining a clear focus throughout the process on project objectives, we have been able to make the right decisions. The main lesson learned from the Stockport project, especially during a period of rising construction costs, is that you can be flexible with elements of your building design and delivery without compromising the value of a project, providing you remain faithful to the need to be solution led and driven by a clear strategy for the curriculum offer.
We are now at the stage where we have successfully completed Phase 1 of our project (the redevelopment of a five-storey curriculum block and a two-storey Arts Factory) and we are on track to complete Phase 2 in December 2022. This phase will deliver a new build facility providing specialist and generic curriculum accommodation along with a new library, reception, student support facilities and office accommodation. The project has not just delivered a more efficient campus and a significant improvement in the quality of accommodation but innovative and flexible curriculum space meeting current and future learner requirements. More importantly, the project is supporting the achievement of our strategic plan, curriculum targets and our reputation and relationship with our students, staff and partners.”
“The FEC team recognise the significant strides taken at Stockport since merger with Trafford College to address the serious challenges with both quality and finance inherited by the group.
Transformation of the Stockport campus has been a central component of the group’s improvement planning and has involved a radical re-think of pre-merger plans for a split site campus involving a sale and lease-back solution.
TCG has taken the opportunity as part of the campus redevelopment to specialise and rationalise its curriculum offer in order to: contain the overall capital costs; improve curriculum efficiency; and reduce running costs. As a result the college will secure significant financial benefits in addition to a step change in the student experience.”