REG - Unite Group PLC - ACQUISITION OF PILOT BTR INVESTMENT

UniteAnnouncement

10/10/2022 07:16

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RNS Number : 2530C  Unite Group PLC (The)  10 October 2022

PRESS RELEASE

10 October 2022

THE UNITE GROUP PLC

('Unite Students', 'Unite', the 'Group', or the 'Company')

ACQUISITION OF PILOT BTR INVESTMENT

 

Unite Students, the UK's leading owner, manager and developer of student
accommodation, has acquired 180 Stratford, a 178-unit purpose-built
build-to-rent ('BTR') property in Stratford, East London for £71m.

 

The acquisition will enable the Group to test its operational capability to
extend its accommodation offer to young professionals and retain them as
customers as they move on to the next stage in their lives. The property adds
to the Group's significant existing presence in the Stratford market, where
Unite already operates 1,700 student beds and has two further student
developments in its secured pipeline. The acquisition of 180 Stratford will
increase Unite's scale in the Stratford market to around 3,700 beds.

 

The property, which opened in 2013, is located on Stratford High Street
approximately 5 minutes walking time to Stratford station as well as a wide
range of local amenities. The property offers 319 beds across a mix of 1-bed,
2-bed and 3-bed units, as well as 11,000 sq ft of commercial space. The
residential units are currently 99% occupied at affordable average rents of
£28 per sq ft.

 

The property is expected to produce a yield on cost of 4.3% following a
planned refurbishment starting in 2023. The refurbishment will incorporate a
rolling upgrade of the existing residential units, the creation of new amenity
space and the addition of seven new residential units.

 

180 Stratford will be integrated onto Unite's operating platform and will
leverage the Company's existing operational capability for day-to-day
management of the building and its development team for delivery of the
planned refurbishment.

 

The acquisition and refurbishment will be funded from the proceeds of recent
disposals and does not impact Unite's 2022 earnings guidance of 40-41p.

 

Richard Smith, Unite Students Chief Executive Officer, commented:

"As previously outlined, we believe that there is an exciting opportunity to
grow our platform in the wider living sector by catering to the growing number
of young professional renters living in major UK cities. We already serve this
market through the 9,000 postgraduate students who live with us each year.
This pilot BTR investment offers the opportunity to test our operational
capability in the sector and understand the potential synergies with our
student business.

 

"This property has good redevelopment potential and benefits from Stratford's
growth as a major student, employment and leisure hub, as well as our
significant local presence. These factors de-risk our investment and make it
the ideal location to trial the extension of our Home for Success offer into
young professional living."

 

ENDS

 

 

For further information, please contact:

 

Unite Students

Joe Lister / Michael
Burt
Tel: +44 117 302 7005

Unite press
office
Tel: +44 117 450 6300

 

Powerscourt

Justin Griffiths / Victoria
Heslop
Tel: +44 20 7250 1446

 

About Unite Students

Unite Students is the UK's largest owner, manager and developer of
purpose-built student accommodation, serving the country's world-leading
Higher Education sector. We provide homes to 75,000 students across 169
properties in 25 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's accommodation is safe and secure, high
quality and affordable. Students live predominantly in ensuite study bedrooms,
with rents covering all bills, insurance, 24-hour security and high-speed
Wi-Fi. We also achieved a five-star British Safety Council rating in our last
audit.

 

We are committed to raising standards in the student accommodation sector for
our customers, investors and employees. This is why our new Sustainability
Strategy, launched in 2021, includes a commitment to become net zero carbon
across our operations and developments by 2030.

 

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 100 Index. Unite is invested in and operates two specialist funds and
joint ventures with institutional investment partners: the £3 billion Unite
UK Student Accommodation Fund (USAF) and the £2 billion London Student
Accommodation Vehicle (LSAV).

 

For more information, visit:

Unite's corporate website www.unitegroup.com (http://www.unitegroup.com)

The student site www.unitestudents.com (http://www.unitestudents.com/)

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