(Alliance News) - Unite Group PLC has acquired a consented 270-bed development site in Nottingham City Centre, it said Monday.
The Bristol, England-based owner, manager and developer of student accommodation expects to spend GBP34 million developing the site, which will open for the 2024-25 academic year. It expects the yield on cost to be 7%.
Unite already has a 1,900-bed portfolio in Nottingham. To this will be added 970 beds in the city centre, as well as 700 beds from a development in Derby road, expected to open next year. The city has seen a 20% growth in demand for accommodation from students, the company noted.
The new site is located close to Nottingham Trent University's planned campus development for final-year and post-graduate students. Unite can now segment its portfolio in the city, creating a more targeted offering for second, third year and postgraduate students, it said.
Nick Hayes, Unite Students Group Property Director, commented: "Through this opportunity we are able to cater for the increased number of students wanting to attend the University of Nottingham and Nottingham Trent University, both located in a growing regional city. This commitment increases our secured pipeline to over GBP800 million, its highest ever level, and we continue to see opportunities to add further schemes in London and prime regional markets at attractive returns".
Unite shares were down 1.1% to 1,028.00 pence each in London on Monday morning.
By Elizabeth Winter; elizabethwinter@alliancenews.com
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Unite (UTG)