REG - Unite Group PLC - New University Partnership with Manchester Met

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RNS Number : 9051G  Unite Group PLC (The)  01 May 2025

PRESS RELEASE

1 May 2025

THE UNITE GROUP PLC

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

NEW UNIVERSITY PARTNERSHIP WITH MANCHESTER METROPOLITAN UNIVERSITY TO DEVELOP
2,300 BEDS

 

Unite Students, the UK's leading owner, manager and developer of student
accommodation, today announces that it has entered into a joint venture ('JV')
framework agreement with Manchester Metropolitan University for the
development of 2,300 new student beds.

 

Highlights

·    Long-term strategic partnership with a leading university

·    Total development costs of c.£390 million (Unite share: c.£275
million)

·    Unite to act as developer, asset manager and operator to the JV with
70% ownership share

 

Unite Students and Manchester Metropolitan University have contracted to form
a JV to develop 2,300 beds at the University's Cambridge Halls site in
Manchester city centre for delivery in 2029 and 2030. Cambridge Halls, which
was constructed in the 1990s, provides 770 beds which no longer meet the needs
of students. Manchester Metropolitan University has committed to close the
existing accommodation on the site, with work due to commence on-site later
this year.

 

Having celebrated its 200-year anniversary in 2024, Manchester Metropolitan
University is the UK's seventh largest university by student numbers and the
fourth largest educator of undergraduate students. The university is ranked
46(th) in Times UK University Guide and 85% of full-time students come from
the UK, significantly above the 70% sector average. The JV will deepen Unite
Students' longstanding relationship with Manchester Metropolitan University,
where we have provided beds under nomination agreements for over 20 years.

 

Manchester is the UK's second-largest university city with over 100,000
full-time students studying at four universities. There is a shortage of
purpose-built student accommodation in Manchester with 3.6 full-time students
per bed, driving demand for new accommodation (national average: 3.2). The JV
development, which sits at the heart of the City's university quarter, will
increase Unite's operational platform in the city to almost 8,000 beds at
completion, helping to deliver operational efficiencies.

 

Andrew Fallon, Chief Property Officer, Manchester Metropolitan University,
commented:

"We are delighted to announce our partnership with Unite Students for the
redevelopment of Cambridge Halls. This joint venture will provide much needed
additional purpose-built student accommodation in Manchester, right on the
doorstep of our University. The project will not only enhance the quality of
housing for students, but also benefit the surrounding community through new
health, wellbeing, and retail offerings."

 

Joe Lister, Unite Students Chief Executive Officer, commented:

"Partnering with Manchester Metropolitan University to redevelop Cambridge
Halls and deliver much needed, high-quality and affordable accommodation for
2,300 students is a hugely exciting step for Unite Students. Our joint-venture
partnership will provide further support to Manchester Metropolitan University
in meeting their accommodation needs at a time of real housing shortage, so
they can focus on providing a world-class experience for their students.

 

"Unite Students is uniquely positioned to help address the shortage of student
homes. Our second university partnership underlines the growing attractiveness
of our offer to university partners as they seek to unlock the potential of
their campuses to deliver new accommodation and access funding. This has the
added benefit of freeing up privately rented houses in the community for
families."

 

Joint venture framework agreement

Total development costs for the project are c.£390 million and construction
is expected to commence in 2026. Manchester Metropolitan University will own a
30% stake in the JV, reflecting the contribution of the Cambridge Halls site.
Unite's equity commitment is expected to be around £125 million for a 70%
stake, which will be funded from internally generated sources, with the
remaining funding coming from debt secured against the JV.

 

The project is expected to deliver returns comparable with developments in
regional cities, which also reflects the fees Unite will receive as
development and asset manager to the JV.

 

To support the University's accommodation requirements during the development
phase, the Company has separately entered into a five-year nomination
agreement for 2,550 beds in other Unite Students' properties in Manchester.

 

Submission of the planning application for the development is expected later
in the second quarter, which would support formation of the JV around the end
of 2025.

 

ENDS

 

For further information, please contact:

Unite Students

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

Unite press office
                   Tel: +44 117 450 6300

 

Sodali & Co

Justin Griffiths / Victoria Heslop / Louisa Henry            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 68,000 students across 153
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 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. It includes our Sustainable Construction Framework, which outlines
our approach for reducing embodied carbon.

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/) .

 

About Manchester Metropolitan University

Manchester Metropolitan University is making an impact on Manchester, the UK
and beyond, with a driving ambition to discover and disseminate knowledge, and
make higher education accessible and beneficial to all those with the passion
and ability to succeed.

The University, which celebrated its 200th anniversary in 2024, is home to
43,000 students with an alumni network of more than 340,000 graduates.

90% of its research is rated as 'internationally excellent' and it has been
rated in the top five most sustainable universities in the UK for the past 12
years.

 

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