Unite Group PLC have announced that the Unite UK Student Accommodation Fund has today issued £125 million in bonds.
Unite Group own a 23% stake in the fund (making it the largest stakeholder) and the new issuance is due to bring returns of £137 million (an implied yield of 2.744%). The funds raised form the issuance will be used to repay secured debt, as well as to help fund further growth.
Unite UK Student currently hold a portfolio of 78 properties valued at £2.1 billion. The properties are distributed across 24 university towns and cities in the UK, and at capacity can house 26,800 students. Today's bonds will surely help those numbers swell in the coming years.