Student accommodation operator Unite Group is poised to buy rival Liberty Living in a deal worth a reported £1.4 bn (€1.53 bn).
Talks are at an ‘advanced’ stage, according to a statement issued by the Unite Group.
A company statement said: ‘If the transaction goes ahead, it will be priced on a NAV-for-NAV basis.’ Liberty’s net asset value stands at €1.53 bn.
Student housing provider Liberty is owned by the Canada Pension Plan Investment Board, with sites located across the UK.
Outlining the reasoning behind the ‘transformative’ acquisition, the Unite Group said it will create significant synergies by leveraging Unite’s scalable operating, sustain the company’s medium-term rental growth outlook and deliver material earnings accretion , while enhancing Unite’s earnings yield.
The cash consideration will be funded through an equity placing representing no more than 10% of Unite’s current issued share capital with Unite Group maintaining its existing leverage targets.
