Unite Group disposes of 11 properties for £306.0m

Student accommodation provider Unite Group has disposed of a portfolio of 11 properties to an affiliate of Lone Star Funds for £306.0m.

Unite said on Tuesday that the disposal portfolio included a total of 4,488 beds across Sheffield, Reading, Leicester, Bedford, Liverpool, Birmingham, Bristol, and Leeds.

The FTSE 250-listed group, which will receive roughly £236.0m from the sale, added that the disposal was part of its "proactive portfolio management strategy", resulting in increased alignment to high and mid-ranked universities, and was also part of an effort to exit "smaller, less operationally efficient assets" in cities such as Bristol and Leeds.

Unite added that the disposals were priced in line with prevailing book value, which reflects a net operating income yield of 5.7%.

Chief executive Richard Smith said: "We have now completed the disposal programme set out at the time of our acquisition of Liberty Living in 2019. These disposals have increased the focus of our portfolio in the strongest university cities and ensure our ability to sustain rental growth over a longer time horizon.

"Our balance sheet is also positioned for growth with the investment capacity to deliver our biggest ever secured development pipeline of £1.0bn and pursue further opportunities to extend our best-in-class platform".