Disposal

RNS Number : 5434O

Unite Group PLC

12 October 2012

 



Press Release 12 October 2012

THE UNITE GROUP PLC

("UNITE", the "Group", or the "Company")

UNITE SELLS DEVONSHIRE STREET PROPERTY FOR £15.25 MILLION AS PART OF

SELECTIVE DISPOSAL PROGRAMME

UNITE, the UK's leading developer and manager of student accommodation, today announces the completion of its sale of a wholly-owned 56-bed property in Devonshire Street, London W1, to a private client of Knight Frank for £15.25 million. The sale price is supportive of valuations for London assets.

The transaction, for which contracts were exchanged in June, demonstrates further progress in UNITE's selective disposal programme of non-core assets, and provides further confidence in achieving balance sheet asset sales firmly within UNITE's target range of £100 million to £150 million by December 2012.

The sale of smaller properties, such as Devonshire Street, is a core element of the Group's strategy to improve the quality and operational efficiency of its portfolio. It also allows UNITE to control leverage and recycle capital into larger, more efficient developments in London, such as the 951-bed scheme adjacent to the Olympic Park in Stratford.

Richard Simpson, Managing Director of Property for UNITE, said: "This sale marks further good progress in our disposal programme of non-core assets, and enables us to continue to concentrate our focus on our ongoing London development pipeline. The price achieved not only reflects the quality and location of this asset but also clearly demonstrates the continued buoyancy and appeal of the student accommodation sector for investors."

- Ends -

For more information please contact:

The UNITE Group plc Sophie Joyce, [e-mail] Sally Quigg, [e-mail] Paul Harris, [e-mail] FTI Consulting Stephanie Highett Dido Laurimore Faye Walters

Tel: [phone] Tel: [phone] Tel: [phone] Tel: [phone]

Notes to Editors

About The UNITE Group

The UNITE Group is the UK's leading developer and manager of student accommodation, with a business model that focuses on two core areas:

1.         Development and Asset Management: UNITE undertakes the acquisition, planning and development of purpose-built student accommodation in the UK. Through the continuous assessment of quality and location of its investment portfolio, UNITE is well positioned to deliver value-adding strategies to those assets where further opportunities are identified. Working on behalf of its partners, UNITE acts as Fund Manager for the UNITE UK Student Accommodation Fund in which it owns a 16.3% share. UNITE also manages a number of Joint Venture partnerships.

2.         Professional property management: UNITE is home to 42,000 students in over 130 properties across 23 of the UK's strongest university cities, and has consistently proven high occupancy levels across its portfolio.

The Group works closely with higher education institutions in order to deliver high quality, well-located student accommodation at affordable prices in strong higher education markets. In 2012 UNITE won the South West Business in the Community Carbon Reduction Award for its environmental initiatives and the Global Real Estate Sustainability Benchmark (GRESB) named UNITE as a regional sector leader for sustainability.

Founded in 1991, UNITE is a FTSE 250 company listed on the London Stock Exchange (UTG). For more information, please visit www.unite-group.co.uk or www.unite-students.com.  

 

END

 

 

DISFFEFMFFESEIS