Bristol student property firm announces £95m scheme

Student property firm Unite is looking to acquire a £95m scheme in Glasgow.

The Bristol firm has announced that it has entered an option agreement to acquire a new 800-bed development scheme in central Glasgow, subject to planning.

The new development will help address the acute shortage of student accommodation in Glasgow, which is home to three institutions within the UK’s top 75 universities, and increases Unite’s portfolio in the city to 3,000 beds.

The group expects to deliver the scheme as a university partnership with at least half of the beds to be let on a multi-year nominations agreement to a leading university.

The scheme has a total development cost of £95m and is expected to deliver a yield on cost of around 7.5 per cent.

Planning approval is targeted during the first quarter of next year and the scheme will be ready for the 2026/27 academic year.

The group expects to fund the project from capital recycling through disposals.

Unite says it has continued to make good progress on delivery of its committed development pipeline.

Morriss House in Nottingham reached practical completion in August and is fully let for the 2023/24 academic year.

Following a £300m equity issue, work has started on-site at the Temple Quarter development in Bristol.

The planning process for Meridian Square in Stratford is also progressing in line with expectations with approval expected by the end of the year.

Michael Burt, Unite Students Group Investment Director, said: “Our latest development will create new supply of high quality, affordable student accommodation in Glasgow to support the continued growth of our university partners.

“We are also making good progress in delivering the two new developments funded from the proceeds of our recent capital raise. Our development pipeline now totals 5,600 beds in the strongest university cities, as we work to address the urgent need for new student housing at a time when the private rental sector is in retreat.”