Unite Students Sells Six Properties for £184 Million to PGIM Real Estate

Unite Students has confirmed the sale of six properties for £184 million, with the Unite share amounting to £76 million. These properties, totalling 2,948 beds, are situated in Birmingham (Jennens Court), Cardiff (North Court), Leicester (The Grange), Liverpool (Prospect Point), Nottingham (St Peter's Court), and Sheffield (Exchange Works), with an average age of 18 years.

Approximately 31% of the beds are let on short-term nomination agreements. The sale aligns with the company's strategy to focus on high and mid-ranked universities with strong projected student demand. The transaction is priced in line with the book value, reflecting an NOI yield of 6.2%.

Proceeds from the sale will be reinvested into asset management activities and to meet redemption requests in USAF. This sale was already factored into the company's guidance for adjusted earnings in the 2024 financial year.

Joe Lister, Unite Students Chief Executive, stated, "These disposals continue our disciplined approach of recycling capital for reinvestment and further increases our alignment to the strongest universities. The growth outlook for purpose-built student accommodation remains compelling, and we are tracking a number of new investment opportunities at attractive returns."