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Aventicum Acquires Portfolio for £133m

Posted by Richard Ward

Image courtesy of Flickr, Creative Commons

Unite Students has confirmed the disposal of eight properties containing 2,284 beds for £133 million to Aventicum.

The assets are located in Coventry, Wolverhampton, Birmingham, Exeter and Manchester, with nomination agreements in place for 28% of the beds on short-term contracts.

The disposals come in at a NOI yield of 6.5% and a 2% discount to the prevailing book value. The disposal forms part of the group's strategy to proactively manage its portfolio and will see the company leave a number of markets as it aligns itself to high and mid-ranked universities.

Completion has now occurred on seven of the eight properties (Unite share: £77 million), with the final scheme in Manchester expected to complete in H2 2021.

Commenting on the deal, Richard Smith, Chief Executive of Unite Students, said: "This disposal forms part of our target to dispose of £200-300 million of assets in 2021. The sale is consistent with our strategy of increasing our exposure to high and mid-ranked Universities where demand is strongest, while delivering operational efficiencies that contribute towards our target for an improvement in our EBIT margin to 74% by the end of 2023."