TIDMUTG
RNS Number : 9431F
Unite Group PLC (The)
20 November 2020
PRESS RELEASE
20 November 2020
THE UNITE GROUP PLC
('Unite Students', 'Unite', the 'Group', or the ' Company ')
ACQUISITION OF NEW CENTRAL LONDON DEVELOPMENT SITE AND UPDATE ON
2020/21 CHECK-IN PERFORMANCE
Unite Students, the UK's leading owner, manager and developer of
student accommodation, today announces the acquisition of a new
800-bed development site in Paddington, central London on a subject
to planning basis and provides an update on check-in performance
for the 2020/21 academic year.
Acquisition of central London development site
The Company has exchanged contracts to acquire a new 800-bed
development site in Paddington, central London from Travis Perkins
plc ('Travis Perkins') on a subject to planning basis. Total
development costs are estimated to be c.GBP150 million, to be
funded from the proceeds of our recent equity issue. The Company is
only committed to limited development costs at this stage and has
optionality over a development start date, subject to market
conditions.
The scheme is targeted for delivery for the 2023/24 academic
year, subject to planning approval, and will deliver a development
yield in line with the Company's enhanced targets for University
partnerships in central London. Discussions are already underway
with University partners to support the scheme through planning,
with a view to agreeing a long-term nomination agreement.
The development will target a BREEAM Excellent rating and
incorporate a range of design features to reduce its embodied and
operational carbon, supporting the Company's transition to net zero
development and operations.
The acquisition is Unite's second partnership with Travis
Perkins following the successful delivery of St Pancras Way in 2014
and, like St Pancras Way, the development will incorporate a new
ground floor retail unit for Travis Perkins.
Update on 2020/21 check-ins
As previously disclosed, we have let 88% of bed spaces across
the whole portfolio for the 2020/21 academic year (2019/20: 98%).
Checked-in occupancy has increased to 80% (8 October: 70%),
reflecting those students who have now checked-in to their
accommodation and nomination agreements where Unite receives rent
directly from Universities.
Customers making up the remaining 8% of occupancy are expected
to check-in during January. Rental arrears for the first term are
broadly in line with previous years.
Our check-in performance and rent collection to date for 2020/21
is expected to result in a reduction in rental income of up to 20%
compared to 2019/20 (previously 10%-20%), excluding the impact of
cancellations in 2019/20 due to Covid-19.
We retain our guidance for EPRA EPS of 22-25 pence for FY2020,
reflecting progress on rent collection in the first term and
delivery of targeted cost savings in the year. Given current
uncertainty, it is too early to commit to the reinstatement of
dividends. However, the Board will review this decision early in
the New Year.
Richard Smith, Chief Executive of Unite Students, commented:
"Our latest land acquisition means we have now secured c.GBP175
million of new development opportunities since our recent placing.
This is a rare opportunity to acquire a zone 1 central London site
in an excellent location, which will help to meet the growing
accommodation needs of our London-based University partners. We
remain confident in the growth outlook for London over the next
decade, reflecting the global reputation of its Universities and a
positive outlook for growth in UK and international student
numbers.
"We have continued to welcome students to our properties over
the past month, reflecting the value they place on the learning,
socialising and independence that University provides. We know from
our recent student survey(1) that the majority of students are
committed to continuing their studies and returning to their
current student accommodation in the New Year and we look forward
to welcoming them back in January. For those students that want to
stay over the Christmas period, we will be fully operational. We
will continue doing all we can to help keep students and our staff
safe throughout this challenging period."
1. 93% of students intend to remain at university and continue
with their courses for the rest of this academic year and 85% said
it was likely they would stay in their accommodation to do this
(survey of 1,000 UK students for Unite Students by Opinium from
30(th) October to 6(th) November).
ENDS
For further information, please contact:
Unite Students
Richard Smith / Joe Lister / Michael Burt Tel: +44 117 302 7005
Unite press office Tel: +44 7754 749 301
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, 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 75,000 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 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 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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END
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