Unite Group PLC Acquisition (7496Z)
March 17 2017 - 3:00AM
UK Regulatory
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
This information is provided by RNS
The company news service from the London Stock Exchange
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