REG - Unite Group PLC - Disposal update and extension of share buyback

UniteAnnouncement

Mon 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260511:nRSK6798Da&default-theme=true

RNS Number : 6798D  Unite Group PLC (The)  11 May 2026

PRESS RELEASE

11 May 2026

THE UNITE GROUP PLC

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

DISPOSAL UPDATE AND EXTENSION OF SHARE BUYBACK

 

Unite Group, the UK's leading owner, manager and developer of student
accommodation, today announces that it has completed the disposal of St
Pancras Way to USAF and extended its share buyback programme.

 

Disposal of St Pancras Way

Further to the announcement on 24 February 2026, Unite has now completed the
sale of St Pancras Way to USAF for £186 million (Unite share: £126 million).
The disposal price represents a 1% discount to December 2025 book value. Unite
will receive approximately £115 million in cash consideration and the balance
in new USAF units net of retentions for committed capex. The new USAF units
will increase Unite's ownership of USAF to 32% (December 2025: 30%).

 

The disposal to USAF means the Group remains invested in a high-quality London
asset, while enhancing management fee income and releasing capital.

 

Use of proceeds and share buyback programme

The Board has approved the return of up to an additional £65 million of
surplus capital to shareholders through an extension of the share buyback
programme of the Company's ordinary shares of 25 pence each announced in
January (the 'Buyback Programme'). In aggregate the Buyback Programme is now
£165 million.

 

To date, we have acquired 19.3 million shares at an average cost of 504p and
in total repurchased £98 million out of the initial £100 million Buyback
Programme.

 

This reflects confidence in Unite's long-term prospects and high-quality
balance sheet and represents a highly attractive investment opportunity for
the Company. This tranche will be funded through proceeds from the disposal of
St Pancras Way with the balance of proceeds allocated to funding capex for
existing on-site developments and university partnerships. Future capital
allocation will be kept under review as we continue to progress with our
accelerated disposal programme, which is on track to deliver £300-400 million
(Unite share) of proceeds in 2026.

 

 

ENDS

 

 

For further information, please contact:

 

Unite Group

Joe Lister / Mike Burt / Saxon Ridley
                     Tel: +44 117 302 7005

Press office
                                             Tel: +44
117 450 6300

 

Sodali & Co

Ben Foster / Pete Lambie / Sam Austrums
                 Tel: +44 20 7250 1446

 

Share buyback programme

The Company has entered into non-discretionary arrangements with Deutsche
Bank AG, London branch ('Deutsche Bank') and J.P. Morgan Securities plc ('JP
Morgan') to conduct the extension of the Buyback Programme on its behalf. JP
Morgan will conduct the first half of the extension of the Buyback Programme
and Deutsche Bank will conduct the latter half. Under the arrangements,
Deutsche Bank and JP Morgan will act as riskless principals and make trading
decisions independently from the Company in accordance with certain pre-set
parameters.

 

The purpose of the Buyback Programme is to reduce the Company's issued share
capital. As such, all ordinary shares repurchased by the Company under the
Buyback Programme will be cancelled. The Company has agreed that the extension
of the Buyback Programme will commence following completion of the initial
£100 million tranche and will run until the earlier of its completion or 31
October 2026 (assuming the authority to repurchase shares is approved at the
Company's upcoming AGM).

 

Share purchases under the Buyback Programme will take place in open market
transactions and may be made from time to time depending on market conditions,
share price and trading volumes. The Buyback Programme will be effected under
the authority granted by shareholders from time to time. At the Company's 2025
Annual General Meeting held on 15 May 2025, shareholders gave the Company
authority to purchase a maximum of 48,879,255 ordinary shares, of which
29,546,586 remains available. At our upcoming AGM, we are seeking authority to
repurchase a maximum of 80,179,399 ordinary shares, representing up to 14.99%
of share capital as at 31 March 2026, in anticipation of progressing
disposals.

 

The Buyback Programme will be conducted in accordance with the UK Market Abuse
Regulation and the UK Listing Rules. The Company will make announcements and
publish on its website details of any share repurchases under the Buyback
Programme.

 

About Unite Group

Unite Group 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 72,000 students across 208 properties in
29 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. Our 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.

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 www.unitegroup.com (http://www.unitegroup.com) ,
www.unitestudents.com (http://www.unitestudents.com) or www.hellostudent.co.uk
(http://www.hellostudent.co.uk) .

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  DISUWSBRNWUVRAR



            Copyright 2019 Regulatory News Service, all rights reserved