UNITE in £178.6m student property deal

UNITE – the UK’s largest student accommodation provider – has sold two properties in Yorkshire in a deal worth more than £26m.

The group has sold two properties in Huddersfield comprising 627 beds to Swanbourne for a cash price £26.6m.

In this morning’s announcement the group said it had sold a number of its sites for £178.6m – 2.8% above the assets December 2007 valuations.

In the larger of the two transactions, UNITE Group is selling nine purpose-built student accommodation properties, comprising 3,810 beds in four markets (Southampton, Cardiff, Preston and Stoke), for £152m to Liberty Living, the student accommodation arm of Brandeaux Fund Management.

Of the nine properties, four are owned by UNITE Group outright and five are owned by UNITE UK Student Accommodation Fund (‘USAF’).

UNITE said it would use the funds from the sale to finance further sites.

Following completion of these sales, UNITE Group will no longer have an operational presence in any of the five cities mentioned – and will follow the group’s strategy of focusing its capital and operations in larger and high-growth markets, notably London.

Unite chief executive Mark Allan said: “These sales, at prices above the December 2007 valuations, provide strong evidence of the resilience of the student accommodation sector at a time when more general property values are under significant downward pressure. The sales are consistent with our stated strategy of focusing our capital on higher growth markets and they provide the group with significant additional funds at a time when we expect attractive opportunities to emerge.”

UNITE provides accommodation for 36,700 students in more than 125 properties across the United Kingdom located in most major British cities.

More than 4,000 students stay in UNITE housing in the Yorkshire region.