REG - Unite Group PLC - Disposal of Nine Properties for £212 Million

UniteAnnouncement

05/06/2025 07:00

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RNS Number : 4127L  Unite Group PLC (The)  05 June 2025

PRESS RELEASE

5 June 2025

THE UNITE GROUP PLC

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

UNITE STUDENTS TO DISPOSE OF NINE PROPERTIES FOR £212 MILLION

 

Unite Students, the UK's leading owner, manager and developer of student
accommodation, today announces exchange of contracts for the disposal of a
portfolio of nine properties, comprising 3,656 beds for £212 million (Unite
share: £140 million) to an affiliate of Lone Star Funds.

 

The disposal portfolio includes assets in Aberdeen, Leicester, Leeds,
Nottingham and Sheffield.  The portfolio has nomination agreements covering
11% of beds for the 2024/25 academic year (Unite: 57%) and an average age of
19 years (Unite average: 13 years). The disposal is part of the Group's
strategy to increase alignment to high and mid-ranked universities and those
properties with the strongest prospects for sustainable long-term rental
growth. The disposal will see the Group fully exit the Aberdeen market.

 

The disposals are priced at a c.1% discount to December 2024 book value and
reflects an Net Operating Income yield of 6.4% based on 2025/26 income.
Contracts have been exchanged with completion due in August 2025. Proceeds
will be recycled into investment activity in our strongest markets, including
our recently announced university partnership with Manchester Metropolitan
University, and used to satisfy the remaining redemption requests in USAF.
Since 2022, the Group has now sold 12,000 beds, recycling over £700 million
into its strongest markets and new investment opportunities.

 

The properties were treated as held for sale in the balance sheet as at 31
December 2024 and the disposal is incorporated into the Company's guidance for
EPRA EPS of 47.5-48.25p for the 2025 financial year, which remains unchanged.

 

Joe Lister, Unite Students Chief Executive, commented:

"These disposals increase the alignment of our portfolio to the strongest
university cities and continues our disciplined approach to recycling capital.
Purpose-built student accommodation continues to attract institutional capital
as the growing UK 18-year-old population and improving trends in international
recruitment underpin demand for high-quality student accommodation".

 

 

 Property                City        Fund  Beds
 Spring Gardens          Aberdeen    USAF  512
 St. Martins House       Leicester   USAF  148
 Newarke Point           Leicester   USAF  648
 The Tannery             Leeds       USAF  497
 The Anvil               Sheffield   USAF  163
 Causeway View           Aberdeen    WO    399
 Clarence Dock Village   Leeds       WO    613
 Grange Lane Apartments  Leicester   WO    68
 Curzon House            Nottingham  WO    608
 Total                                     3,656

 

 

ENDS

 

 

 

For further information, please contact:

 

Unite Students

Joe Lister / Michael 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).

 

With more than 150 properties in 23 leading university towns and cities, Unite
Students is home to around 70,000 students, living predominantly in en-suite
study bedrooms with rents covering bills, insurance, and 24-hour security.

 

Driven by a common purpose: to provide a 'Home for Success' to live, work and
invest, Unite Students is committed to raising standards in the student
accommodation sector with the support of over 60 university partners.

 

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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