Acquisition

RNS Number : 9246T

Unite Group PLC

10 October 2014

 

Press release 10 October 2014

       THE UNITE GROUP PLC

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

Unite Students progresses regional development pipeline in Aberdeen and Liverpool

Unite Students, the UK's leading developer and manager of student accommodation has acquired two new development sites. One site is in Aberdeen and the other in Liverpool, and together the projects will add c. 1,250 new beds, scheduled to be open in time for the 2017/18 academic year.

The two schemes are expected to achieve returns in line with Unite's targets for regional development of 9.5 to 10% yield on cost and have a combined total development cost of c. £80 million, representing approximately 60% of the Group's planned development activity for 2017 delivery.  On completion, the schemes are expected to add c. 12 pence to NAV per share and c. 2.5 pence per annum to EPRA earnings per share.

The sites are in excellent, central locations and will complement Unite's existing properties in each city very well. Aberdeen and Liverpool are both cities with large and growing student populations which underpin market fundamentals.

Richard Simpson, Managing Director of Property for Unite Students, said: "We are delighted to have secured two more excellent sites in strong regional locations in line with our development strategy. The new schemes will enhance our presence in two of our best performing markets and provide much needed accommodation capacity for the growing student populations. The acquisition of these sites means that we have now secured approximately 60% of our target 2017 pipeline, providing greater visibility of our future earnings growth."

For further information, please contact:

Unite Students Rebecca Murch, Corporate Communications Manager	Tel: [phone]
Bell Pottinger Victoria Geoghegan Nick Lambert Elizabeth Snow	Tel: [phone]

Notes to editors:

About Unite Students

Unite Students is the UK's leading manager and developer of student accommodation. We provide a home for over 43,000 students in 130 purpose built properties across 23 of the UK's strongest university towns and cities. We have over 1,000 employees and work in partnership with over 50 higher education providers, as well as renting rooms directly to students.

Our culturally-diverse customers are at the heart of our business and we aim to provide a home for students that supports their success, whether defined as academic achievement, personal growth or employability. Our properties provide high quality, well-located, safe accommodation that is close to university campuses, transport and local amenities. Our rent includes a study bedroom, all bills, insurance, 24-hour security and high speed Wi-Fi throughout our buildings.

Founded in 1991, Unite Group is a FTSE 250 company listed on the London Stock Exchange. We are pursuing a sustainable growth strategy designed to make the most of the resilient nature of the student accommodation sector. We aim to maintain the strongest brand in the sector and operate the highest quality portfolio through consistent investment in and improvement to our operating platform, highly selective development activity, asset management initiatives and portfolio recycling.

In addition to our wholly owned properties, we are also invested in and operate a small number of specialist funds and joint ventures with institutional investment partners, the largest of which is the £1.5 billion Unite UK Student Accommodation Fund (USAF).

The Group's charitable trust, the Unite Foundation, supports widening access to higher education, integrating students into the community and employability. It provides scholarships for disadvantaged students at seven universities and volunteering opportunities for our students and employees through partner organisations.

For more information visit our corporate website: www.unite-group.co.uk or www.unite-students.com.

 

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