University Property Development Trusts: How They Work And Points To Consider

With university trusts being the development entity of choice for many universities across Canada, this Bulletin explores some high-level takeaways for universities looking to implement a trust, as well as developers and lenders navigating these projects. While this Bulletin focusses on Western Canada and specifically Alberta, in any event, the points outlined below should be considered in the specific context of each development and trust situation.

A typical configuration for university trust development involves establishing:

1. a university development trust (the "Trust")¹ with the university (the "University") in question as the beneficiary (or the beneficiary of an endowment fund or other charitable entity), structured internally to maximize tax benefits, plus a development corporation, as trustee of the Trust. This specialized management structure allows property development to occur independently from the University's activities, while still giving the