Unite Group, the biggest developer and manager of student accommodation in the UK, has sold 13 properties to a fund managed by Northern American asset manager Brookfield for a total £295 mln (€346 mln).
The price is in line with the book value of the properties and reflects a yield of around 5.5%. The properties total 4,175 beds and are located in Aberdeen, Birmingham, Bournemouth, Edinburgh, Glasgow, Liverpool and York.
The deal comes a week after Unite teamed up with Singapore's GIC to acquire Aston Student Village in Birmingham for £227 mln (€266 mln).
In a note on the transaction, analyst Robert Duncan of stockbroking and advisory firm Numis said Unite Group is actively managing its exposure to Scotland, which it says has potential to be most impacted by Brexit. 'In our view, this is a sensible transaction which proves the valuation of its assets and frees up capital for investment into future growth of the business while also increasing focus on its target university cities where it sees the strongest prospects for growth.'
