Last checked at 7 Apr 2014 07:00
Press Release
7 April 2014
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THE UNITE GROUP PLC
("UNITE", the "Group", or the "Company")
UNITE ANNOUCES SALE OF OASIS CAPITAL JOINT VENTURE ASSETS
UNITE, the UK's leading developer and manager of student accommodation, announces that its Oasis Capital (OCB) joint venture has exchanged unconditional contracts to sell its three assets in line with stated strategy. The agreed sale price, at £174 million, is both supportive of existing book value and in line with expectations. Completion is scheduled within the next two months and UNITE will have no operational involvement beyond this point.
The five year OCB joint venture was formed in 2009 to develop and manage three London properties. The three developments within the portfolio, Woodland Court, Wedgwood Court and Great Suffolk Street total 1,129 beds, and UNITE holds a 25% stake.
The joint venture will use the proceeds to repay outstanding debt and the net proceeds will be distributed to UNITE and the other joint venture partner. UNITE intends to recycle its share of the net proceeds of £18 million into its London-focused UNITE Capital Cities (UCC) joint venture with GIC, in order to increase its share to a 50:50 holding. This equalisation is a pre-condition to the merger of UCC and LSAV (London Student Accommodation Vehicle), a development joint venture with GIC, to form a single investment vehicle.
The sale of the OCB joint venture assets and the subsequent merger of the Group's two GIC joint ventures will deliver UNITE's plan to simplify its co-investment vehicles by reducing the number from four to two.
Richard Simpson, Managing Director of Property for UNITE, said:
"The strength and depth of interest in this portfolio demonstrates the continued growth in appetite from the investment market for good quality purpose built student accommodation.
"Our OCB joint venture was nearing maturity and this transaction is a very logical time for the Group to seek an exit. The proceeds will be used to equalise our share in UCC to maintain our current exposure to the London market and support of our longer term strategy to simplify our investment vehicles."
For further information, please contact:
The UNITE Group plc Sally Quigg, Head of Corporate Communications Rebecca Murch, Corporate Communications Manager |
Tel: +44 117 302 7070 Tel: +44 117 302 7081 |
Bell Pottinger Victoria Geoghegan Nick Lambert Elizabeth Snow |
Tel: +44 20 7861 3925 |
Notes to editors:
About UNITE
UNITE is the UK's leading manager and developer of student accommodation. We provide a home for 41,000 students in over 120 purpose built properties across 23 of the UK's strongest university towns and cities. We have nearly 1,000 employees and work in partnership with over 50 higher education providers, as well as renting rooms directly to students. In May 2013 UNITE was awarded Student Accommodation Provider of the Year at Property Week's RESI Awards.
Our culturally-diverse customers are at the heart of our business and we aim to provide a home for students that supports their success, whether defined as academic achievement, personal growth or employability. Our properties provide high quality, well-located, safe accommodation that is close to university campuses, transport and local amenities. Our rent includes a study bedroom, all bills, insurance, 24-hour security and high speed Wi-Fi throughout our buildings.
Founded in 1991, UNITE is a FTSE 250 company listed on the London Stock Exchange. We are pursuing a sustainable growth strategy designed to make the most of the resilient nature of the student accommodation sector. We aim to maintain the strongest brand in the sector and operate the highest quality portfolio through consistent investment in and improvement to our operating platform, highly selective development activity, asset management initiatives and portfolio recycling.
In addition to our wholly owned properties, we are also invested in and operate a small number of specialist funds and joint ventures with institutional investment partners, the largest of which is the £1.35 billion UNITE UK Student Accommodation Fund (USAF).
The Group's charitable trust, the UNITE Foundation, supports widening access to higher education, integrating students into the community and employability. It provides scholarships for disadvantaged students at seven universities and volunteering opportunities for our students and employees through partner organisations.
For more information visit our corporate website: www.unite-group.co.ukor www.unite-students.com