REG - Unite Group PLC - DISPOSAL OF SIX PROPERTIES FOR £184 MILLION

UniteAnnouncement

13/05/2024 07:00

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RNS Number : 0458O  Unite Group PLC (The)  13 May 2024

PRESS RELEASE

13 May 2024

THE UNITE GROUP PLC

('Unite Students', 'Unite', the 'Group', or the 'Company')

DISPOSAL OF SIX PROPERTIES FOR £184 MILLION

 

Unite Students, the UK's leading owner, manager and developer of student
accommodation, today announces the sale of six properties to PGIM Real Estate
for £184 million (Unite share: £76 million).

 

The properties, comprising 2,948 beds, are located in Birmingham, Cardiff,
Leicester, Liverpool, Nottingham and Sheffield and have an average age of 18
years (Unite average: 13 years). 31% of beds are let on short-term nomination
agreements (Unite: 53%, 5.8 years average remaining term). The disposal is
part of the Group's portfolio management strategy to increase alignment to
high and mid-ranked universities which have the strongest outlook for student
demand and support sustainable rental growth.

 

The disposals are priced in line with book value, reflecting an NOI yield of
6.2%. Proceeds will be recycled into asset management activity and used to
meet redemption requests in USAF. The properties were held for sale at
December 2023 and the disposal was incorporated into the company's guidance
for adjusted earnings of 45.5-46.5p in the 2024 financial year, which remains
unchanged.

 

Joe Lister, Unite Students Chief Executive, commented:

"These disposals continue our disciplined approach of recycling capital for
reinvestment and further increases our alignment to the strongest
universities. The growth outlook for purpose-built student accommodation
remains compelling and we are tracking a number of new investment
opportunities at attractive returns."

 

ENDS

 

List of disposal properties

 

 Property          Town/city   Fund          Beds
 Jennens Court     Birmingham  USAF          596
 North Court       Cardiff     USAF          253
 The Grange        Leicester   USAF          219
 Prospect Point    Liverpool   Wholly Owned  635
 St Peter's Court  Nottingham  USAF          808
 Exchange Works    Sheffield   USAF          437
 Total                                       2,948

 

 

For further information, please contact:

 

Unite Students

Joe Lister / Mike Burt / Saxon Ridley
          Tel: +44 117 302 7005

Press office
                                         Tel:
+44 117 450 6300

 

Powerscourt

Justin Griffiths / Courtney Sanford
            Tel: +44 20 7250 1446

 

About Unite Students

Unite Students is the UK's largest owner, manager, and developer of
purpose-built student accommodation (PBSA) serving the country's world-leading
higher education sector. We provide homes to 70,000 students across 158
properties in 23 leading university towns and cities. We currently partner
with over 60 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 Students' accommodation is safe and
secure, high quality, and affordable. Students live predominantly in en-suite
study bedrooms with rents covering all bills, insurance, 24-hour security and
high-speed Wi-Fi.

We are committed to raising standards in the student accommodation sector for
our customers, investors, and employees. Our Sustainability Strategy includes
a commitment to become net zero carbon across our operations and developments
by 2030. It includes our Sustainable Construction Framework, which outlines
our approach for reducing embodied carbon.

Founded in 1991 in Bristol, the Unite Group is an award-winning Real Estate
Investment Trust (REIT), listed on the London Stock Exchange. For more
information, visit Unite Group's corporate website www.unitegroup.com
(http://www.unitegroup.com/) or the Unite Students'
site www.unitestudents.com (https://www.unitestudents.com/) .

 

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