Unite Group PLC (The) Unite acquires new development site in Edinburgh (7343S)

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RNS Number : 7343S

Unite Group PLC (The)

13 July 2020

 
 
   Press release 
 

13 July 2020

THE UNITE GROUP PLC

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

UNITE ACQUIRES NEW DEVELOPMENT SITE IN EDINBURGH

Unite Students, the UK's leading owner, manager and developer of student accommodation, announces that it has exchanged contracts to acquire a new 300-bed development site in central Edinburgh, which forms part of a wider mixed-use redevelopment.

The Company is targeting delivery of the direct-let development for the 2023/24 academic year however, subject to planning consent, this timetable may be accelerated. Total development costs are estimated to be GBP24 million, delivering a development yield in line with the Company's enhanced 8.5% target for provincial markets.

The Edinburgh market is home to 55,000 full-time students and four high and medium-tariff Universities and has an undersupply for purpose-built student accommodation. The development will add to Unite's 2,200 operational beds in the city and support the Company's strategic alignment to leading Universities, where student demand is strongest.

Richard Smith, Chief Executive of Unite Students, commented:

"This acquisition represents one of three new development and forward funded schemes either contracted or under offer for a total development cost of c.GBP250 million. The scheme will be funded through the proceeds of our recent placing and delivers enhanced returns relative to pre-Covid-19 levels."

ENDS

For further information, please contact:

Unite Students

Richard Smith / Joe Lister / Michael Burt Tel: [phone]

Unite press office Tel: [phone]

Powerscourt

Victoria Heslop / Ben Harries Tel: [phone]

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. Following the GBP1.4bn acquisition of Liberty Living in November 2019, we now provide homes to 74,000 students across 177 properties in 27 leading university towns and cities. We currently partner with 45 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 en-suite 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 GBP3 billion Unite UK Student Accommodation Fund (USAF), and the GBP1 billion London Student Accommodation Vehicle (LSAV).

For more information, visit:

Unite's corporate website www.unite-group.co.uk ,

The student site www.unite-students.com ,

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July 13, 2020 02:00 ET (06:00 GMT)