Unite Group PLC (The) Unite Students to dispose of 11 properties (9899D)
March 08 2022 - 2:01AM
UK Regulatory
TIDMUTG
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 GBP306
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 GBP306 million (Unite
share: GBP236 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 GBP51 million (Unite share: GBP11 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 GBP1 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 GBP1 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
The student site www.unitestudents.com
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END
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