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Unite Students Sells Assets worth £88.4m

Posted by Richard Ward in

Image courtesy of Flickr, Creative Commons

Unite Students is set to sell 2 assets totalling 1,122 beds to UNITE Student Accommodation Fund (USAF) for £88.4m, representing a 9.3% yield on cost and a blended yield of 5.65%.

The 2 assets - Greetham Street, Portsmouth and Gosford Gate, Coventry - are both fully let for the '16/'17 academic year under nomination agreements with Portsmouth University and Coventry University respectively.

The purchase by USAF is to be funded by a new £100m 5-year debt facility with US bank Wells Fargo. The sale takes UNITE's disposals for the year to over £110m.

UNITE CFO Joe Lister said: "We are delighted to have sold two assets to USAF, recycling capital from our development programme providing capital to deploy into new development opportunities, while also enhancing USAF's portfolio and returns."

Unite Student Accommodation Fund is an open-ended non-listed real estate fund focused on the UK student accommodation sector. Unite holds a 23% stake in the fund.