(Alliance News) - Unite Group PLC on Tuesday announced Unite Students has sold a portfolio of eight properties to Aventicum Real Estate for GBP133 million.
The Bristol, England-based purpose-built student accommodation provider said the portfolio consisted of 2,284 beds and includes assets in Coventry, Wolverhampton, Birmingham, Exeter and Manchester. Its share of the proceeds is set to be GBP90 million.
Unite said completion for seven out of the eight properties has occurred, with the final one in Manchester expected to complete in the second half of 2021. The disposal is part of Unite's portfolio management strategy and will see it exit various subscale markets, it added.
"This disposal forms part of our target to dispose of GBP200 million to GBP300 million of assets in 2021. The sale is consistent with our strategy of increasing our exposure to high and mid-ranked universities where demand is strongest, while delivering operational efficiencies that contribute towards our target for an improvement in our earnings before interest and tax margin to 74% by the end of 2023," said Chief Executive Richard Smith.
Shares in Unite were up 0.8% at 1,079.24 pence in London on Tuesday.
By Zoe Wickens; zoewickens@alliancenews.com
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Unite (UTG)