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LONDON (Alliance News) - Unite Group PLC said the Unite UK Student Accommodation Fund has acquired a 2,904 bed student accommodation portfolio for GBP137 million, which will increase USAF's property portfolio value by 10% to GBP1.51 billion from GBP1.38 billion.
USAF is an open-ended non-listed real estate fund that focuses on acquiring and operating student accommodation in the UK. Unite owns 21% of USAF, is its investment manager, and operates its properties.
The deal was funded through a combination of cash resources and existing debt facilities following USAF's recent fund raising in March.
The portfolio comprises nine regional assets and represents the entire portfolio of the Cordea Savills Student Hall Fund, a private student accommodation fund owned by Savills PLC.
Unite said it already operates two of the properties under sales and leaseback arrangements, meaning the group's operational portfolio will increase by a net 1,862 bed spaces following the acquisition. These two assets, based in Bath and Portsmouth, represent around 35% of the acquired portfolio by value.
Overall Unite Group said it will now operate 43,953 bed spaces for the 2014/15 academic year, compared with 41,072 bed spaces a year earlier.
Unite shares were quoted up 1.0% at 396.50 pence Wednesday morning.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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