REG - Unite Group PLC - Unite Students to dispose of 11 properties

UniteAnnouncement

08/03/2022 07:00

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RNS Number : 9899D  Unite Group PLC (The)  08 March 2022

PRESS RELEASE

8 March 2022

THE UNITE GROUP PLC

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

UNITE STUDENTS TO DISPOSE OF ELEVEN PROPERTIES FOR £306 MILLION

 

Unite Students, the UK's leading owner, manager and developer of student
accommodation, today announces the disposal of a portfolio of 11 properties,
comprising 4,488 beds for £306 million (Unite share: £236 million) to an
affiliate of Lone Star Funds.

 

The disposal portfolio includes assets in Sheffield (1,700 beds), Reading (703
beds), Leicester (665 beds), Bedford (517 beds), Liverpool (390 beds),
Birmingham (337 beds), Bristol (99 beds) and Leeds (77 beds), and has
nomination agreements covering 46% of beds on short-term contracts. The
disposal is part of the Group's proactive portfolio management strategy,
resulting in increased alignment to high and mid-ranked universities that
deliver the greatest quality and value to students. It also sees the Group
exit certain smaller, less operationally efficient assets in cities such as
Bristol and Leeds.

 

The disposals are priced in line with prevailing book value, which reflects an
NOI yield of 5.7%. The properties were treated as held for sale in the balance
sheet as at 31 December 2021 and the disposal is incorporated into the
Company's guidance for EPRA EPS of 41-43p for the 2022 financial year, which
remains unchanged.

 

Completion will occur on 15 March on four of the properties in the portfolio
for £51 million (Unite share: £11 million). The completion of the remaining
properties will occur on 31 August 2022. The disposals reduce see-through LTV
to 25% on a pro forma basis, providing the Group with capacity to fund its £1
billion development pipeline and explore additional growth opportunities.

 

Richard Smith, Chief Executive of Unite Students, commented:

"We have now completed the disposal programme set out at the time of our
acquisition of Liberty Living in 2019. These disposals have increased the
focus of our portfolio in the strongest university cities and ensure our
ability to sustain rental growth over a longer time horizon. Our balance sheet
is also positioned for growth with the investment capacity to deliver our
biggest ever secured development pipeline of £1 billion and pursue further
opportunities to extend our best-in-class platform"

 

ENDS

 

 

List of disposal properties

 

 Property               Town/city   Fund          Beds
 Polhill Park           Bedford     Wholly owned  517
 Calthorpe Court        Birmingham  Wholly owned  337
 Studio 58              Bristol     USAF          99
 The Priory             Leeds       USAF          77
 Filbert Village        Leicester   USAF          665
 Paddington Park House  Liverpool   Wholly owned  390
 Crown House            Reading     USAF          99
 Kendrick Hall          Reading     Wholly owned  604
 Devonshire Courtyard   Sheffield   USAF          319
 The Forge 2            Sheffield   Wholly owned  224
 The Forge              Sheffield   Wholly owned  1,157
 Total                                            4,488

 

 

 

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 (PBSA) serving the country's world-leading
higher education sector. We provide homes to 74,000 students across 172
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 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. 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, the Unite Group is an award-winning Real Estate
Investment Trust (REIT), listed on the London Stock Exchange.

 

For more information, visit:

Unite's corporate website www.unite-group.co.uk (http://www.unite-group.co.uk)

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

 

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