Unite Group PLC Acquisition (7496Z)

TIDMUTG

RNS Number : 7496Z

Unite Group PLC

17 March 2017

 
 Press release 
 
  17 March 2017 
 

THE UNITE GROUP PLC

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

UNITE STUDENTS ACCOMMODATION FUND ('USAF') ACQUIRES PROPERTY UNDER DEVELOPMENT IN DURHAM

Unite Students, the UK's leading manager and developer of student accommodation, announces that USAF has acquired an asset under development in Durham. The 'forward funded' asset will be opened in September 2018 and will provide a home for 363 students.

USAF is acquiring the asset for GBP34 million and it is expected to deliver a yield on cost of 6.4% in its first year of operation. Based on current valuations, the asset will be valued at a yield of 5.5%, resulting in a profit on cost of approximately GBP5 million (Unite share GBP1.1 million). The acquisition will be funded with USAF's share of proceeds from recent disposals.

Durham is a world-class University with a growing student population. The acquisition grows our presence in this highly attractive University city and provides Unite Students with scale efficiencies enabling us to drive further value from our PRISM operating platform.

Richard Simpson, Group Property Director, said:

"This latest acquisition further extends our high-quality development programme in a strong regional location where there is strong demand for purpose built student accommodation. Our strategy remains focused on high quality Universities like Durham, where we see sustainable growth."

-ENDS-

For further information, please contact:

 
 Unite Students 
  Joe Lister, Chief Financial Officer     Tel: +44 117 
  Paul Richmond, Corporate Affairs        302 7005 
  Director 
 Bell Pottinger 
  Victoria Geoghegan                      Tel: +44 20 
  Nick Lambert                            3772 2562 
  Elizabeth Snow 
 

Notes to editors:

About Unite Students

Unite Students is the UK's largest and most established manager and developer of purpose-built student accommodation. It provides a home for around 50,000 students, in more than 140 properties, across 28 leading university cities in England and Scotland. Unite works in partnership with more than 60 Higher Education institutions and also lets rooms directly to students.

Unite's purpose is to provide a home to its culturally-diverse customers, offering them a strong foundation for academic and personal success. The accommodation is high quality, safe and close to university campuses, transport links and local amenities. Students live in ensuite study bedrooms with rents covering all bills, insurance, 24-hour security, fortnightly cleaning of communal kitchens and bathrooms and high speed Wi-Fi.

Founded in 1991 in Bristol, The Unite Group plc is a FTSE250 company, listed on the London Stock Exchange, employing more than 1,250 people. It pursues a sustainable growth strategy, designed to make the most of the resilient nature of the student accommodation sector. Unite is focused on maintaining its position as the leading provider of student accommodation in the UK, by having the best brand, operating the highest quality portfolio and maintaining the strongest capital structure in the sector. This is achieved with consistent investment in, and improvement to, the operating platform; highly selective development activity and asset management initiatives.

Unite is invested in and operates a two specialist funds and joint ventures with institutional investment partners, the GBP2 billion Unite UK Student Accommodation Fund (USAF) and the GBP1 billion London Student Accommodation Vehicle (LSAV).

Unite is the founder and major donor of the Unite Foundation. Since 2012 this has provided free student accommodation and financial support to 160 young people in the UK who lack family support.

For more information you can visit Unite's corporate website www.unite-group.co.uk, the student site www.unite-students.com or the Unite Foundation www.unitefoundation.co.uk.

LEI: 213800BBUUWVDH9YI827

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March 17, 2017 03:00 ET (07:00 GMT)