Student accommodation provider makes £100m disposal

Student accommodation firm the Unite Group has disposed of two assets in a £100m deal.

The assets, located in Birmingham and Newcastle comprising 1,155 beds, have been sold to the Unite UK Student Accommodation Fund (USAF), representing a net initial yield of 5.5%.

Joe Lister, chief financial officer of the Unite Group, said: “The disposals by Unite to USAF form part of our plan to dispose of £150-200m of assets per annum during the next three years following the acquisition of Liberty Living.

“These planned disposals will fund our development activity and support our target to reduce LTV to 35% by 2021.”