The foundation was created by a donation from the book publisher Michael Th Hansen, owner of Förlagshuset Norden AB. At the Annual General Meeting, April 24th 1956, it was decided that 2 000 000 kronor would be donated to Lund University to facilitate the construction of a student housing college and the establishment of a scholarship fund with the purpose of supporting young graduate students at Lund University.

Book publisher Hansen passed away on September 6th 1956 and was succeeded as CEO by his wife, Jozzi Hansen, who came to play an important role in completing the donor's wish. The donation was received very well by the university's principal, professor Ragnar Bergendal, who appointed a preparatory committee formed by: professor Ragnar Bergendal (chairman), former librarian Gunnar Carlquist, wife Jozzi Hansen, Disponent Nils-Åke Janséus, ph. lic. Rune Persson, associate professor Martin Weibull and lawyer Anders Winblad.

The Michael Hansen College Foundation was constituted on April 10th 1957 meeting. On this occasion, the architects Hans Westman and Evert Bjuvsten were also present. The chairman announced that an agreement had been reached with architect Hans Westman, which meant that he will be the architect of the proposed student housing building and, in consultation with a work committee, choose a suitable plot for construction.