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Unite Group Announces Placing of New Shares

Posted by Richard Ward in

Image courtesy of Flickr, Creative Commons

Unite Group has announced a placing of new ordinary shares, as the company looks to raise approximately £300 million.

According to Unite, the funds will enable the business to invest in its market-leading platform and drive future earnings growth. The company intends to use the net proceeds to grow its development pipeline by targeting three new schemes which are currently under offer for a total development cost of c. £250 million. Unite will also look to capitalise on new University partnerships and development opportunities in key cities to enhance future returns.

Richard Smith, Chief Executive Officer of Unite, commented: "This Placing will enable us to continue to invest in our market-leading platform and accelerate growth opportunities. In addition, our decisive actions during the lockdown period have enhanced our reputation with Universities - we were the first PBSA provider to forgo summer term rents - and we expect this to create new partnership opportunities."

"Universities will be open for business this Autumn, supporting an encouraging outlook for student demand for 2020/21. We know that students hugely value the contact time they receive at University as well as the life experience it provides. We see continued structural demand for higher education, driven by our expectations for a significant recovery in international student numbers, a return to demographic growth of 18-year olds, and underpinned by a return to the full campus experience. Our high-quality, value for money offer is also an attractive alternative for many of the c. 855,000 UK students who live in traditional shared houses and we are well-positioned to gain market share in this area."