Birmingham University

Unite Students exchanges contracts to acquire two schemes for £56m

Developer Unite Students has exchanged contracts for the acquisition of two property assets for the combined cost of £56m (Unite share £12.9m) via its Unite Students Accommodation Fund (USAF).

The sites are a 222-bed development in Durham and a 418-bed scheme in Selly Oak, Birmingham.

The acquisitions are expected to generate a yield on cost of 6.3% in their first full year of operation.

Richard Simpson, group property director at Unite Students, said: "These transactions demonstrate our strategy of investing in new, larger and more efficient properties with cluster flat accommodation available at a lower price point for students.

“We will continue to deploy funds from the disposals made at the start of the year to further improve the quality of the portfolio and to extend our highly accretive development programme in strong regional locations with top-ranked universities like Durham or Birmingham, where we see the most sustainable growth."

USAF has also sold a 128-bed studio scheme in central London for £42m (Unite share £9.7m).

Disposals in 2017 now total £180m, on a Unite share basis, against a target of £150-200m.

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