LONDON: Unite Students Group announced the disposal of a portfolio of eight properties, comprising 2,284 beds for £133 million (Unite share: £90 million) to Aventicum Real Estate.
The disposal portfolio includes assets in Coventry, Wolverhampton, Birmingham, Exeter and Manchester and has nomination agreements covering 28% of beds on short-term contracts.
The disposal is part of the Group’s proactive portfolio management strategy and will see the Company exit a number of subscale markets, while improving alignment to high and mid-ranked Universities. The disposals are priced at an NOI yield of 6.5% and a 2% discount to prevailing book value.
Completion has now occurred for the disposal of seven of the eight properties in the portfolio for £120 million (Unite share: £77 million). The disposal of one remaining property in Manchester for £13 million (Unite share: £13 million) is expected to complete in H2 2021.
Richard Smith, Chief Executive of Unite Students, commented: “This disposal forms part of our target to dispose of £200-300 million of assets in 2021. The sale is consistent with our strategy of increasing our exposure to high and mid-ranked Universities where demand is strongest, while delivering operational efficiencies that contribute towards our target for an improvement in our EBIT margin to 74% by the end of 2023.”
Unite Students is the UK’s largest owner, manager and developer of purpose-built student accommodation, serving the country’s world-leading Higher Education sector. We provide homes to 76,000 students across 180 properties in 27 leading University towns and cities. We currently partner with over 60 Universities across the UK. www.unite-group.co.uk