Student accommodation group Unite sell 99 per cent of beds and makes £71m Stratford acquisition
Student accommodation group Unite has sold 99 per cent of beds for the academic year, as it makes a major acquisition in Stratford for £71m.
The company reported an increase in the number of beds bought up from 94 per cent in 2021/22 to almost 100 per cent this year, as university returns to being fully in-person.
It reported rental growth of 3/5 per cent and its outlook improved for 2023/4, expecting it to grow to 4.5 per cent.
It also announced the acquisition of 180 Stratford, a 178-unit purpose-built build-to-rent property in Stratford, East London for £71m.
The purchase will allow Unite to expand its offering to young professionals, and adds to its portfolio in the area, where it already has 1.700 beds and two additional developments.
“We have delivered a very strong operational performance for the 2022/23 academic year, reflecting the appeal of our high-quality portfolio and affordable rents”, said Richard Smith, Chief Executive of Unite Students.
“Despite the challenging economic environment, the business remains well positioned thanks to increasing student numbers and a growing shortage of high-quality, purpose-built student accommodation across our markets.
On the acquisition. which will be funded from recent disposals, Smith said “there is an exciting opportunity to grow our platform in the wider living sector by catering to the growing number of young professional renters living in major UK cities.”
“This pilot built to rent investment offers the opportunity to test our operational capability in the sector and understand the potential synergies with our student business.
“This property has good redevelopment potential and benefits from Stratford’s growth as a major student, employment and leisure hub, as well as our significant local presence. These factors de-risk our investment and make it the ideal location to trial the extension of our Home for Success offer into young professional living.”