Unite Group PLC Disposal (8013Y)
March 08 2017 - 2:00AM
UK Regulatory
TIDMUTG
RNS Number : 8013Y
Unite Group PLC
08 March 2017
Press release
8 March 2017
THE UNITE GROUP PLC
("Unite Students", "Unite", the "Group", or the "Company")
UNITE DISPOSES OF WOBURN PLACE, LONDON FOR GBP135 MILLION
Unite Students, the UK's leading manager and developer of
student accommodation, announces that it has exchanged contracts
for the disposal of Woburn Place in London for GBP135 million
(Unite share: GBP67.5 million) to GCP Student Living PLC. The
property is owned in its LSAV joint venture, and the price reflects
a value per bedroom of GBP316,000, a net initial yield of 4.5% and
a 6% premium to book value.
Woburn Place is a direct let building located in Bloomsbury and
comprises 427 bedrooms that are principally studios. The disposal
forms part of Unite's strategy to take advantage of the ongoing
strength in the investment market and substantially completes plans
to recycle GBP150-GBP200 million of assets (Unite share) during
2017. The receipts will be used to fund the development pipeline
and further investment into higher quality investments such as the
recently acquired on-campus accommodation at Aston University. The
Group LTV will fall to 32% following the disposal.
Richard Simpson, Group Property Director, said:
"We will continue to invest in our highly accretive development
pipeline and to target further acquisitions that enhance the
quality of our portfolio and support earnings growth. Our strategy
remains focused on high quality Universities, where we see the most
long-term 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
This information is provided by RNS
The company news service from the London Stock Exchange
END
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