Unite Group in talks about acquisition of Liberty Living

"There can be no certainty that any transaction will be agreed and a further announcement will be made if and when appropriate," the company said on Thursday.

If a deal goes ahead, it will be price on a net asset value (NAV) for NAV basis. As at 28 February, Liberty Living's NAV was £1.4bn.

Unite said the transaction consideration will be a combination of cash and shares, with the CPPIB becoming a significant shareholder in the enlarged group.

The company said the acquisition would leverage its scalable and "best-in-class" operating platform, PRISM, to deliver "significant" synergies. In addition, it would sustain Unite's medium-term rental growth outlook and deliver "material" earnings accretion.

Unit expects to fund part of the consideration through an equity placing representing no more than 10% of its current issued share capital.

The CPPIB is the sole shareholder of Liberty Living, which offers student accommodation in 21 cities across the UK and Europe.

At 1555 BST, Unite share were down 2.5% at 948p.