LONDON: Unite Students, the UK’s leading student accommodation business, announced that it has exchanged contracts to acquire a new 300-bed development site in central Edinburgh, which forms part of a wider mixed-use redevelopment.
The Company is targeting delivery of the direct-let development for the 2023/24 academic year however, subject to planning consent, this timetable may be accelerated. Total development costs are estimated to be £24 million, delivering a development yield in line with the Company’s enhanced 8.5% target for provincial markets.
The Edinburgh market is home to 55,000 full-time students and four high and medium-tariff Universities and has an under supply for purpose-built student accommodation. The development will add to Unite’s 2,200 operational beds in the city and support the Company’s strategic alignment to leading Universities, where student demand is strongest.
Richard Smith, Chief Executive of Unite Students, commented: “This acquisition represents one of three new development and forward funded schemes either contracted or under offer for a total development cost of c.£250 million. The scheme will be funded through the proceeds of our recent placing and delivers enhanced returns relative to pre-Covid-19 levels.”