Unite Students to dispose of 11 properties
Unite Students, the UK’s leading owner, manager and developer of student accommodation, today announces the disposal of a portfolio of 11 properties, comprising 4,488 beds for £306 million (Unite share: £236 million) to an affiliate of Lone Star Funds.
The disposal portfolio includes assets in Sheffield (1,700 beds), Reading (703 beds), Leicester (665 beds), Bedford (517 beds), Liverpool (390 beds), Birmingham (337 beds), Bristol (99 beds) and Leeds (77 beds), and has nomination agreements covering 46% of beds on short-term contracts. The disposal is part of the Group’s proactive portfolio management strategy, resulting in increased alignment to high and mid-ranked universities that deliver the greatest quality and value to students. It also sees the Group exit certain smaller, less operationally efficient assets in cities such as Bristol and Leeds.
The disposals are priced in line with prevailing book value, which reflects an NOI yield of 5.7%. The properties were treated as held for sale in the balance sheet as at 31 December 2021 and the disposal is incorporated into the Company’s guidance for EPRA EPS of 41-43p for the 2022 financial year, which remains unchanged …