Unite, the largest provider of student accommodation in the UK, has announced the completion of the sale of 13 properties in key student markets across the UK for just over £171 mln (EUR 190 mln). The buyer was Unite's UK Student Accommodation Fund (USAF).
Unite, the largest provider of student accommodation in the UK, has announced the completion of the sale of 13 properties in key student markets across the UK for just over £171 mln (EUR 190 mln). The buyer was Unite's UK Student Accommodation Fund (USAF).
The assets sold comprise 2,625 bed spaces across 13 properties in London, Reading, Manchester, Liverpool, Sheffield, Bristol, Exeter, Plymouth, Leicester, Coventry and Nottingham. The properties are 99% let for the 2008/09 academic year.
Based on an independent valuation by CB Richard Ellis the transaction volume represents a net initial yield of 6.15%.
Joe Lister, Unite's chief financial officer, said: 'The sale demonstrates both the continued appetite amongst investors for student accommodation and the sector's resilient characteristics within this period of wider economic decline. The net proceeds from the sale will be used to strengthen the group’s balance sheet and will be deployed into development activities when appropriate opportunities emerge.'
