Student accommodation group completes £184m disposal

Student accommodation provider The Unite Group is disposing of six of its UK properties, for a combined total of £184m.

The Bristol-based group is selling sites in Birmingham, Cardiff, Leicester, Liverpool, Nottingham and Sheffield to the global PGIM Real Estate business, with some proceeds set to fuel new investment opportunities.

Unite will receive £76m from the deal, with the rest attributable to Unite Students Accommodation Fund (USAF).

The six properties comprise 2,948 beds across Jennens Court in Birmingham (596 beds); North Court, Cardiff (253 beds); The Grange, in Leicester (219 beds); Prospect Point in Liverpool, which is wholly owned by Unite Group (635 beds); St Peter’s Court, Nottingham (808 beds); and Exchange Works, in Sheffield (437 beds).

The disposal is part of the group’s portfolio management strategy to increase alignment with high and mid-ranked universities which have the strongest outlook for student demand and support sustainable rental growth.

Unite Students CEO, Joe Lister, said: “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.”