Unite Group buys Sheffield site to build student housing

The site, which is close to the University of Sheffield in the city centre, will house around 570 students, with total development costs, including land, to be around £35m.

The development, which is expected to be completed by the start of the 2019/20 academic year, is anticipated to achieve a return on cost of eight to 8.5%, which is in line with the company's target for regional development.

The acquisition has increased the FTSE 250 company's development pipeline to over 5,500 beds and contributes to its earnings growth outlook.

Richard Simpson, group property director, said the acquisition extends its high-quality, development programme in a 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."