Unite Group secures planning consent on two new developments

Developer and manager of student accommodation, Unite Group, announced on Thursday it has secured planning consent for two city centre developments in Birmingham and Sheffield totalling 1,186 student bedrooms.

The FTSE 250 company said the consents take the total development pipeline to be delivered in the next three years to 6,500 beds, providing further visibility to its earnings growth outlook.

It said the new scheme at International House in Birmingham is located alongside Unite Students' existing development 'The Heights', which is fully let for the 2016/17 academic year.

Its board said the new scheme will help increase its presence in a key market.

In Sheffield, the company described St Vincent's Church as a dilapidated former church located next to the University of Sheffield's main city centre campus.

The approved development will include the full refurbishment of the former church and its grounds into a new common room and accommodation for 600 new student beds.

Both schemes are expected to be open for the 2018/19 academic year, Unite confirmed, and have a combined £75m development cost, including land.

The schemes will be funded by internally generated sources and are expected to achieve a yield on cost of 8% in line with targets, and to contribute 2p per share to EPRA earnings once complete.

Unite said the schemes will continue to drive the group's earnings visibility and NAV growth.

“We are delighted to have secured planning consent for these important sites in two of the UK's most popular university cities,” said group property director Richard Simpson.

“These cluster-led developments will help to meet the strong demand for student accommodation in these cities and provide a safe and secure home for students.

“We will continue to progress our secured pipeline which remains focused on regional locations with strong student markets.”