(Sharecast News) - Student accommodation provider Unite Group said on Tuesday that it has extended its joint venture with Singapore sovereign wealth fund GIC by 10 years to September 2032.
The company also announced an agreement to settle its performance fee from the London Student Accommodation Joint Venture (LSAV) in cash during the fourth quarter of this year. LSAV was established in September 2012 with a 10-year term maturing in September 2022.
Unite said that it and GIC have agreed the extension "following a successful partnership that has delivered strong development returns and growth in rental income". Both companies will retain a 50% equity stake in LSAV, which had net assets of £814m at the end of December 2020.
Unite's performance fee, which is expected to be around £30m to £40m, will be paid in cash in the fourth quarter, based on valuations and cashflows to 30 September 2021.
Chief executive Richard Smith said: "I am delighted to agree a long-term extension of our LSAV joint venture with GIC. The transaction provides a strong endorsement of our sector-leading operating platform from GIC, a high calibre investment partner with whom Unite has enjoyed a successful relationship since 2005.
"The realisation of the LSAV performance fee in 2021 reflects a combination of strong development returns and rental growth by LSAV's London portfolio since 2012."
Unite (UTG)11 Apr 2024 15:09