Unite Students, the listed UK manager and developer of student accommodation, has sold Woburn Place in London for £135 mln (€156 mln) to London-based investment advisory firm, GCP Student Living.
The property was owned by Unite's £1 bn London Student Accommodation Vehicle (LSAV), a joint venture with institutional investors. Unite's share was worth £67.5 mln (€78 mln) and the sale represents a net initial yield of 4.5% and a 6% premium to book value.
'We will continue to invest in our highly accretive development pipeline and to target further acquisitions that enhance the quality of our portfolio and support earnings growth. Our strategy remains focused on high quality Universities, where we see the most long-term growth,' commented Richard Simpson, group property director.
Woburn Place is a direct let building located in Bloomsbury comprising 427 bedrooms that are principally studios. Unite said it was continuing to take advantage of the ongoing strength of the investment market. The sale forms part of its strategy to recycle £150-£200 mln during 2017 and the price reflects a value per bedroom of £316,000 (€364,000).
Unite will use receipts to fund the development pipeline and other investments, including the recently acquired on-campus accommodation at Aston University.
