Unite Group gets planning permission resolution for London development

Student accommodation developer and manager the Unite Group has received resolution to grant planning permission for its 913-bed student accommodation development in Middlesex Street in London, it announced on Thursday.

The FTSE 250 company said the consent remained subject to approval from the Greater London Authority, which was anticipated in the next few weeks.

It said the site occupied a “prime location” in central London, and would provide “much-needed accommodation” for students.

The scheme would generate a development yield in line with Unite's target returns for university partnership schemes in London, the board said, and was expected to be delivered for the start of the 2021-2022 academic year.

Unite said the development would be funded from net proceeds of the February 2018 placing and committed banking facilities.

The application was supported through planning by King’s College London, with both parties working towards a long-term nomination agreement.

Unite said the development reflected its strategy of aligning its property portfolio to the best locations and high-ranking universities, where student numbers were growing the fastest.

“London is the UK's largest student market but also one of the most difficult in which to deliver new supply,” said Unite Students group property director Nick Hayes.

“Middlesex Street creates new supply in a strategically important location where there is a shortage of affordable, high quality accommodation.

“The scheme adds to our London pipeline, which already includes the 678-bed forward fund development at First Way in Wembley, due for completion in 2020.”