Last checked at 10 Sep 2018 07:00
Press Release 10 September 2018 |
Unite disposes of 14 properties for £180.5 million
Unite Students, the UK's leading manager and developer of student accommodation, announces the unconditional exchange of contracts for the disposal of 14 properties, comprising 3,436 beds for £180.5 million, of which Unite's share is £84.7 million. The properties are being sold to Singapore Press Holdings and completion is due later in September 2018. The purchase price reflects a net initial yield of 6.3% and is marginally below book value.
The portfolio is made up of a combination of wholly owned, USAF and LSAV properties located in Plymouth, Huddersfield, Sheffield, Birmingham, Bristol and London. As a result of the disposal, Unite no longer has a presence in Plymouth or Huddersfield and the efficiency and quality of the portfolio has been enhanced.
The transaction is in line with Unite's strategy to recycle capital through the disposal of assets with lower than average growth prospects and reinvest into developments increasingly focusing on high and mid-ranked universities, which have the best long-term growth prospects.
Upon completion of the pipeline, high and mid-ranked Universities will account for 90% of Unite's portfolio. The Group's proforma LTV falls to 25% following the disposal and provides capacity for the Group to add further developments or University Partnerships to the pipeline.
Richard Smith, Chief Executive of Unite Students, said:
"This sale is an important part of our ongoing strategy of creating a high-quality portfolio aligned to the Universities with the highest student demand and the best long-term growth prospects. The UK's high and mid-ranked Universities are some of the most attractive for both home and international students, ensuring demand for our beds remains high. The transaction provides the investment capacity for our highly accretive development pipeline and target acquisitions that enhance our portfolio and support our earnings growth."
ENDS
For further information, please contact:
Joe Lister, Chief Financial Officer
Tel: +44 117 302 7005
Candice Macdonald, Head of Corporate Communications
Tel: +44 7525 592521
Powerscourt, PR adviser to Unite
Mazar Masud or Victoria Heslop
Tel: +44 207 250 1446
unite@powerscourt-group.com
Notes to Editors:
About Unite Students
Unite Students is the UK's largest manager and developer of purpose-built student accommodation serving the country's world-leading higher education sector. We currently provide homes for 50,000 students in more than 140 properties across 24 leading university towns and cities in England and Scotland. Unite also has a strong development pipeline, which will deliver a further 8,000 beds in the next three years.
Our 1,450 people are driven by a common purpose: to provide the students who live with us a 'Home for Success' and to be the most trusted brand in the sector. We do this through great service, great people and great properties, all designed on the basis of an unrivalled insight into students' needs and preferences.
Unite's accommodation is high quality, safe and secure, and located close to university campuses, transport links and local amenities. Students live predominantly in en-suite study bedrooms with rents covering all bills, insurance, 24-hour security, fortnightly cleaning services and high-speed Wi-Fi. MyUnite, our mobile app, provides practical support such as instant messaging and maintenance requests.
Our commitment to customer service is powered by an innovative, in-house operating platform. It provides a wide range of benefits to our students, such as an optimised online booking process, as well as providing us with a unique ability to drive value from our portfolio through scale efficiencies and revenue management.
Alongside delivering great service, our other strategic priority is delivering growing and sustainable earnings, underpinned by a strong capital structure. A key part of this strategy is growing the number of beds let though partnerships with mid and high tariff universities which are experiencing record levels of student demand. We currently partner with 60 higher education institutions, guaranteeing that approximately 60% of our rooms are let under multi-year, 'nomination agreements' providing high visibility of forward occupancy and rental growth.
Unite is invested in and operates two specialist funds and joint ventures with institutional investment partners: the £2 billion Unite UK Student Accommodation Fund (USAF), and the £1 billion London Student Accommodation Vehicle (LSAV).
Unite is the founder of and major donor to the Unite Foundation, a charitable trust established to support talented students facing challenging financial circumstances through the provision of free accommodation annual scholarships. The Foundation has so far provided scholarships for 250 young people working in close collaboration with 28 universities.
Founded in 1991 in Bristol, Unite Group is an award-winning Real Estate Investment Trust (REIT), listed on the London Stock Exchange and a member of the FTSE 250 Index.
For more information, please visit Unite's corporate website www.unite-group.co.uk, the student site www.unite-students.com or the Unite Foundation www.unitefoundation.co.uk.