Contracts exchanged on £80m student housing site
Unite Students has exchanged contracts to acquire a development site near to the University of Leeds and Leeds Beckett University to provide accomodation for 1,000 students.
The scheme is still subject to planning and total development cost is expected to be £80m , funded from Unite’s internally generated sources. The new building is expected to be open for the 2020 academic year and deliver a yield on cost of 8%.
Unite, a manager and developer of student accommodation, said the transaction reflected the firm’s strategy of aligning its property portfolio with high-ranking universities where student numbers are growing whilst underpinning further earnings growth and visibility.
Richard Simpson, group property director at Unite Students, said: “Leeds is a strong performing market with two high quality Universities. Unite has maintained a 99% occupancy rate in the city over the past five years, signalling we have room to expand and there is demand for the quality, affordable student accommodation we provide. We are confident the site in Leeds – subject to planning approvals – will be a great addition for Leeds’ growing number of students.”
The site would increase Unite’s Leeds portfolio to 4,470 beds, serving a student population of 58,000, and further enhancing Unite’s operating efficiency in the city. In the last five years, Unite’s occupancy in the city has been 99% with over 1,200 beds subject to nominations agreements with Leeds universities.
