REG - Unite Group PLC - New 800-bed development in Glasgow

UniteAnnouncement

13/09/2023 07:15

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RNS Number : 2161M  Unite Group PLC (The)  13 September 2023

PRESS RELEASE

13 September 2023

THE UNITE GROUP PLC

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

NEW 800-BED DEVELOPMENT IN GLASGOW

 

Unite Students, the UK's leading owner, manager and developer of student
accommodation, today announces that it has entered an option agreement to
acquire a new 800-bed development scheme in central Glasgow, subject to
planning.

The new development will help address the acute shortage of student
accommodation in Glasgow, which is home to three institutions within the UK's
top 75 universities, and increases Unite's portfolio in the city to 3,000
beds. The Group expects to deliver the scheme as a university partnership with
at least half of the beds to be let on a multi-year nominations agreement to a
leading university.

The scheme has a total development cost of £95 million and is expected to
deliver a yield on cost of around 7.5%. Planning approval is targeted during
H1 2024, enabling delivery for the 2026/27 academic year. The Group expects to
fund the project from capital recycling through disposals.

 

Development pipeline update

We have continued to make good progress on delivery of our committed
development pipeline since our interim results. Morriss House in Nottingham
reached practical completion in August and is fully let for the 2023/24
academic year.

 

Following our £300 million equity issue, work has started on-site at our
Temple Quarter development in Bristol. The planning process for Meridian
Square in Stratford is also progressing in line with expectations with
approval targeted in Q4 2023.

 

Michael Burt, Unite Students Group Investment Director, commented:

"Our latest development will create new supply of high quality, affordable
student accommodation in Glasgow to support the continued growth of our
university partners. We are also making good progress in delivering the two
new developments funded from the proceeds of our recent capital raise. Our
development pipeline now totals 5,600 beds in the strongest university cities,
as we work to address the urgent need for new student housing at a time when
the private rental sector is in retreat."

 

ENDS

 

 

For further information, please contact:

 

Unite Students

Richard Smith / Joe Lister / Mike
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 (PBSA) serving the country's world-leading
higher education sector. We provide homes to 70,000 students across 157
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 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 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, 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
(http://www.unitegroup.com/) or the Unite Students'
site www.unitestudents.com (https://www.unitestudents.com/)

 

 

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