NEW SPACE IS PART OF A PLAN TO RAISE THE ENDOWMENT OF THE SCHOOL
Compared to most U.S. schools, London Business School has a rather meager endowment of less than 20 million pounds, or less than $32 million. The endowment of the Harvard Business School, which boasts the largest treasure chest of any business school in the world, is currently $2.8 billion. So Sir Andrew expects to use the dramatic expansion of the school as an effort to raise substantial money from alumni and other potential patrons.
Unlike many top business schools that are often housed in relatively new and spacious quarters, London Business School has occupied a magnificent domed and arched building officially owned by the Queen and set across the street from the lovely green rounds of Regent’s Park. But the hallways are narrow and there are few places for students to gather and work in teams. Most students have to cross a busy street and walk down a residential block to find a place for their team meetings. With the addition of more students and programs over the years, the school had long outstripped the capacity of its buildings.
“This is something we have been very keen to do otherwise the school couldn’t expand the way we want it to,” Sir Andrew told the FT. “This really provides for us for expansion for the next 50 years.”
FULL-TIME MBA PROGRAM TO EXPAND ALONG WITH EXECUTIVE EDUCATION
Once London Business School can expand into the new space, a fairly significant expansion in its programs is expected. The school currently has an intake of about 405 full-time MBAs a year, though this is expected to increase by an additional 75 in two year, even before the Town Hall is ready to open.
The deal to acquire that much space in central London is complicated, involving a civil partnership with Westminster City Council. The school will essentially share the building so that council meetings, weddings and other community functions can be held in the facility after the renovations are complete.
In a statement accompanying the news release by London Business School, Cllr Jonathan Glanz, Westminster Council’s Cabinet Member for Housing and Property, said: “In tough economic times, it is more important than ever for councils to make best use of their property assets. This agreement will not only generate an income for the council, but it will also see the multi-million pound restoration of the famous building. I am delighted that we have partnered with London Business School and to see the historic building enter a new chapter as a modern educational facility.”