Last checked at 13 May 2024 07:00
PRESS RELEASE
13 May 2024
THE UNITE GROUP PLC
('Unite Students', 'Unite', the 'Group', or the 'Company')
DISPOSAL OF SIX PROPERTIES FOR £184 MILLION
Unite Students, the UK's leading owner, manager and developer of student accommodation, today announces the sale of six properties to PGIM Real Estate for £184 million (Unite share: £76 million).
The properties, comprising 2,948 beds, are located in Birmingham, Cardiff, Leicester, Liverpool, Nottingham and Sheffield and have an average age of 18 years (Unite average: 13 years). 31% of beds are let on short-term nomination agreements (Unite: 53%, 5.8 years average remaining term). The disposal is part of the Group's portfolio management strategy to increase alignment to high and mid-ranked universities which have the strongest outlook for student demand and support sustainable rental growth.
The disposals are priced in line with book value, reflecting an NOI yield of 6.2%. Proceeds will be recycled into asset management activity and used to meet redemption requests in USAF. The properties were held for sale at December 2023 and the disposal was incorporated into the company's guidance for adjusted earnings of 45.5-46.5p in the 2024 financial year, which remains unchanged.
Joe Lister, Unite Students Chief Executive, commented:
"These disposals continue our disciplined approach of recycling capital for reinvestment and further increases our alignment to the strongest universities. The growth outlook for purpose-built student accommodation remains compelling and we are tracking a number of new investment opportunities at attractive returns."
ENDS
List of disposal properties
Property | Town/city | Fund | Beds |
Jennens Court | Birmingham | USAF | 596 |
North Court | Cardiff | USAF | 253 |
The Grange | Leicester | USAF | 219 |
Prospect Point | Liverpool | Wholly Owned | 635 |
St Peter's Court | Nottingham | USAF | 808 |
Exchange Works | Sheffield | USAF | 437 |
Total |
|
| 2,948 |
For further information, please contact:
Unite Students
Joe Lister / Mike Burt / Saxon Ridley Tel: +44 117 302 7005
Press office Tel: +44 117 450 6300
Powerscourt
Justin Griffiths / Courtney Sanford Tel: +44 20 7250 1446
About Unite Students
Unite Students is the UK's largest owner, manager, and developer of purpose-built student accommodation (PBSA) serving the country's world-leading higher education sector. We provide homes to 70,000 students across 158 properties in 23 leading university towns and cities. We currently partner with over 60 universities across the UK.
Our people are driven by a common purpose: to provide a 'Home for Success' for the students who live with us. Unite Students' accommodation is safe and secure, high quality, and affordable. Students live predominantly in en-suite study bedrooms with rents covering all bills, insurance, 24-hour security and high-speed Wi-Fi.
We are committed to raising standards in the student accommodation sector for our customers, investors, and employees. Our Sustainability Strategy includes a commitment to become net zero carbon across our operations and developments by 2030. It includes our Sustainable Construction Framework, which outlines our approach for reducing embodied carbon.
Founded in 1991 in Bristol, the Unite Group is an award-winning Real Estate Investment Trust (REIT), listed on the London Stock Exchange. For more information, visit Unite Group's corporate website www.unitegroup.com or the Unite Students' site www.unitestudents.com.