Unite Group PLC Disposal of two assets for £100 million to USAF (5450N)
September 25 2019 - 2:01AM
UK Regulatory
TIDMUTG
RNS Number : 5450N
Unite Group PLC
25 September 2019
PRESS RELEASE
25 September 2019
THE UNITE GROUP PLC
("Unite Students", "Unite", the "Group", or the "Company")
UNITE DISPOSES OF TWO ASSETS FOR GBP100 MILLION TO USAF
The Unite Group plc, one of the UK's leading owners, developers
and managers of student accommodation, today announces the disposal
of two assets for GBP100 million (Unite share GBP75 million) to the
Unite UK Student Accommodation Fund ("USAF"), representing a net
initial yield of 5.5%. The assets are located in Birmingham and
Newcastle and comprise a total of 1,155 beds.
In addition, USAF announces the launch and pricing of GBP85
million of bonds issued under its existing debt funding platform,
the 3.921% bond due June 2025. The new issue is being placed at a
premium to par generating total proceeds to USAF of GBP95 million,
reflecting an implied yield of 1.83%. The proceeds will be used to
fund further growth in the fund.
Unite's share of the new debt represents approximately 2% of the
Group's total borrowings, on a see-through basis, as at 30 June
2019. The issue supports a further marginal reduction in the
Group's cost of debt.
Joe Lister, Chief Financial Officer of the Unite Group plc,
commented:
"The disposals by Unite to USAF form part of our plan to dispose
of GBP150-200 million of assets per annum during the next three
years following the acquisition of Liberty Living. These planned
disposals will fund our development activity and support our target
to reduce LTV to 35% by 2021."
ENDS
For further information, please contact:
Unite Students
Richard Smith / Joe Lister / Paul Richmond Tel: +44 117 302
7005
Powerscourt
Justin Griffiths / Victoria Heslop Tel: +44 20 7250 1446
About Unite Students
Unite Students is one of the UK's largest owners, managers and
developers of purpose-built student accommodation serving the
country's world-leading higher education sector. We currently
provide homes for over 50,000 students in circa 130 properties
across 22 leading university towns and cities in England and
Scotland. Unite also has a strong development pipeline, which will
deliver around 5,000 beds in the next three years.
Our 1,400 people are driven by a common purpose: to provide the
students who live with us a 'Home for Success' and to be the most
trusted brand in the sector. We do this through quality service,
quality people and quality properties, all designed on the basis of
an excellent insight into students' needs and preferences.
Unite's accommodation is high quality, safe and secure, and
located where students want to live. Students live predominantly in
en-suite study bedrooms with rents covering all bills, insurance,
24-hour security, fortnightly cleaning services and high-speed
Wi-Fi. MyUnite, our mobile app, provides practical support such as
instant messaging and maintenance requests.
Our commitment to customer service is powered by an innovative,
in-house operating platform. It provides a wide range of benefits
to our students, such as an optimised online booking process, as
well as providing us with a unique ability to drive value from our
portfolio through scale efficiencies and revenue management.
Alongside delivering quality service, our other strategic
priority is delivering growing and sustainable earnings,
underpinned by a strong capital structure. A key part of this
strategy is growing the number of beds let through partnerships
with mid and high tariff universities which are experiencing record
levels of student demand. We currently partner with 60 higher
education institutions, guaranteeing that approximately 60% of our
rooms are let under 'nomination agreements' providing high
visibility of forward occupancy and rental growth.
Unite is invested in and operates 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 of and major donor to the Unite Foundation,
a charitable trust established to support talented students facing
challenging financial circumstances through the provision of free
accommodation annual scholarships. The Foundation has so far
provided scholarships for 250 young people working in close
collaboration with 29 partner universities.
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.
For more information, please 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
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END
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