REG - Unite Group PLC - University Joint Venture

UniteAnnouncement

19/02/2024 07:00

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RNS Number : 4452D  Unite Group PLC (The)  19 February 2024

PRESS RELEASE

19 February 2024

THE UNITE GROUP PLC

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

NEW UNIVERSITY PARTNERSHIP - UNITE STUDENTS ENTERS JOINT VENTURE FRAMEWORK
AGREEMENT WITH NEWCASTLE UNIVERSITY TO DEVELOP 2,000 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 Newcastle University for the development of 2,000 new
student beds.

 

Highlights

·    Long-term strategic partnership with a Russell Group university

·    Total development costs of c.£250 million (Unite share: £128
million)

·    Unite to act as development and asset manager to the JV with 51%
ownership share

 

Unite Students and Newcastle University have contracted to form a JV to
develop 2,000 beds at the University's Castle Leazes site in Newcastle for
delivery in 2027 and 2028. The Castle Leazes site currently provides c.1,250
beds and was built in 1969. Newcastle University has committed to close the
existing accommodation on the site and commence demolition in the summer of
2024.

 

Joe Lister, Unite Students Chief Executive Officer, commented:

"Partnering with Newcastle University to redevelop Castle Leazes and deliver
2,000 beds of high-quality, affordable accommodation for students is a hugely
exciting step for Unite Students. The partnership will provide further support
to Newcastle University in meeting their accommodation needs at a time of real
housing shortage, so that 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 through our long-standing and trusted university relationships,
best-in-class operating platform and in-house development capability. There is
a significant opportunity to become the partner-of-choice for universities as
they seek to unlock the potential of their campuses to deliver new
accommodation and access new funding."

 

Nick Collins, Executive Director of Finance, Newcastle University, commented:

"We are delighted to partner with Unite Students to redevelop Castle Leazes.
This joint venture will provide high-quality, affordable accommodation for our
students and help us continue to attract students from across the UK and
around the world to Newcastle University and our city."

 

Joint venture framework agreement

Newcastle University is a founding member of the research-led Russell Group of
Universities and was ranked 37(th) in the UK by the Times & Sunday Times
Good University Guide in 2024 and 110(th) in the QS World University Rankings
2024. The JV deepens our existing 20-year relationship with Newcastle
University. To support the University's accommodation requirements during the
development phase, the Company has separately entered into a four-year
nomination agreement for 1,600 beds in other Unite Students properties in the
city.

 

Total development costs are c.£250 million, with main construction expected
to commence in early 2025. Newcastle University will own a 49% stake in the JV
and contribute the Castle Leazes site on a 150-year lease. Unite's equity
commitment is expected to be c.£70 million for a 51% stake with the remaining
funding coming from debt secured against the JV. The project is expected to
deliver returns comparable with developments in regional cities. This also
reflects the fees Unite will receive as development and asset manager to the
JV.

 

Entry into the JV is subject to planning approval. Planning submission is
expected by the end of Q1 2024, which would support formation of the JV before
the end of 2024.

 

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

 

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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