Disposal of eight properties for Â£133 millionSource: RNS
30 March 2021
THE UNITE GROUP PLC
('Unite Students', 'Unite', the 'Group', or the 'Company')
DISPOSAL OF EIGHT PROPERTIES FOR £133 MILLION
Unite Students, the UK's leading owner, manager and developer of student accommodation, today announces the disposal of a portfolio of eight properties, comprising 2,284 beds for £133 million (Unite share: £90 million) to Aventicum Real Estate.
The disposal portfolio includes assets in Coventry, Wolverhampton, Birmingham, Exeter and Manchester and has nomination agreements covering 28% of beds on short-term contracts. The disposal is part of the Group's proactive portfolio management strategy and will see the Company exit a number of subscale markets, while improving alignment to high and mid-ranked Universities. The disposals are priced at an NOI yield of 6.5% and a 2% discount to prevailing book value.
Completion has now occurred for the disposal of seven of the eight properties in the portfolio for £120 million (Unite share: £77 million). The disposal of one remaining property in Manchester for £13 million (Unite share: £13 million) is expected to complete in H2 2021.
Richard Smith, Chief Executive of Unite Students, commented:
"This disposal forms part of our target to dispose of £200-300 million of assets in 2021. The sale is consistent with our strategy of increasing our exposure to high and mid-ranked Universities where demand is strongest, while delivering operational efficiencies that contribute towards our target for an improvement in our EBIT margin to 74% by the end of 2023."
For further information, please contact:
Joe Lister / Michael Burt Tel: +44 117 302 7005
Unite press office Tel: +44 117 450 6300
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, serving the country's world-leading Higher Education sector. We provide homes to 76,000 students across 180 properties in 27 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's accommodation is safe and secure, high quality and affordable. Students live predominantly in ensuite study bedrooms, with rents covering all bills, insurance, 24-hour security and high-speed Wi-Fi. We also hold a five-star British Safety Council audit rating.
Founded in 1991 in Bristol, Unite Group is an award-winning Real Estate Investment Trust (REIT), listed on the London Stock Exchange and a member of the FTSE 250 Index. Unite is invested in and operates two specialist funds and joint ventures with institutional investment partners: the £3 billion Unite UK Student Accommodation Fund (USAF) and the £1 billion London Student Accommodation Vehicle (LSAV).
For more information, visit:
Unite's corporate website www.unite-group.co.uk
The student site www.unitestudents.com