Unite Group PLC Acquisition (2251N)
24 October 2016 - 5:00PM
UK Regulatory
TIDMUTG
RNS Number : 2251N
Unite Group PLC
24 October 2016
Press release
24 October 2016
THE UNITE GROUP PLC
("Unite Students", "Unite", the "Group", or the "Company")
UNITE STUDENTS ACQUIRES NEW SITE IN SHEFFIELD
Unite Students, the UK's leading developer and manager of
student accommodation, has exchanged contracts to acquire a
development site in Sheffield, on a subject to planning basis. The
site, in Sheffield city centre, is very close to the University of
Sheffield and will provide a home for around 570 students.
Total development costs, including the cost of the land, are
expected to be GBP35 million, which will be funded internally and
is anticipated to be delivered for the 2019/2020 academic year. The
project is expected to achieve a return on cost of 8.0 - 8.5%, in
line with Unite's target for regional development. The acquisition
increases the development pipeline to over 5,500 beds and
contributes to Unite's ongoing earnings growth outlook.
Sheffield is a thriving University city with a large and growing
student population of 48,000 and is home to two strong
Universities. The new development will increase the number of Unite
beds in Sheffield to around 4,300, across nine properties,
providing an opportunity to deliver further operational
efficiencies and to strengthen our relationships with local
Universities.
Richard Simpson, Group Property Director for Unite Students,
commented: "This acquisition extends our high-quality, development
programme in a strong regional location where there is growing
demand for purpose built student accommodation.
"Sheffield is a key city for Unite and we will be able to drive
efficiencies from our scale and enhance services to our customers
and university partners.
"We continue to see good opportunities to secure land alongside
leading regional Universities to supplement our development
pipeline for delivery in 2019 and 2020."
ENDS
For further information, please contact:
Unite Students
Joe Lister, Chief Financial Officer Tel: +44 117
302 7005
Bell Pottinger
Victoria Geoghegan Tel: +44 20
Nick Lambert 3772 2562
Elizabeth Snow
Notes to editors:
About Unite Students
Unite Students is the UK's largest and most established manager
and developer of purpose-built student accommodation. It provides a
home for around 50,000 students, in more than 140 properties,
across 28 leading university cities in England and Scotland. Unite
works in partnership with more than 60 Higher Education
institutions and also lets rooms directly to students.
Unite's purpose is to provide a home to its culturally-diverse
customers, offering them a strong foundation for academic and
personal success. The accommodation is high quality, safe and close
to university campuses, transport links and local amenities.
Students live in ensuite study bedrooms with rents covering all
bills, insurance, 24-hour security, fortnightly cleaning of
communal kitchens and bathrooms and high speed Wi-Fi.
Founded in 1991 in Bristol, The Unite Group plc is a FTSE250
company, listed on the London Stock Exchange, employing more than
1,250 people. It pursues a sustainable growth strategy, designed to
make the most of the resilient nature of the student accommodation
sector. Unite is focused on maintaining its position as the leading
provider of student accommodation in the UK, by having the best
brand, operating the highest quality portfolio and maintaining the
strongest capital structure in the sector. This is achieved with
consistent investment in, and improvement to, the operating
platform; highly selective development activity and asset
management initiatives.
Unite is invested in and operates a small number of specialist
funds and joint ventures with institutional investment partners,
the largest of which is the GBP2 billion Unite UK Student
Accommodation Fund (USAF).
Unite is the founder and major donor of the Unite Foundation.
Since 2012 this has provided free student accommodation and
financial support to 160 young people in the UK who lack family
support.
For more information you can visit Unite's corporate website
www.unite-group.co.uk, the student site www.unite-students.com or
the Unite Foundation site www.unitefoundation.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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