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Unite Students has announced the exchange of contracts for the sale of a portfolio of nine properties to an affiliate of Lone Star Funds in a deal worth £212 million (Unite share: £140 million).
The portfolio includes 3,656 student beds located in Aberdeen, Leicester, Leeds, Nottingham, and Sheffield. The assets, which have an average age of 19 years compared to Unite’s average of 13 years, are currently subject to nomination agreements covering 11% of beds for the 2024/25 academic year (Unite: 57%).
This disposal forms part of Unite's ongoing strategy to sharpen its focus on high and mid-ranked universities and invest in properties with the strongest long-term rental growth potential. The transaction will also mark Unite's full exit from the Aberdeen market.
The assets are being sold at a modest 1% discount to their December 2024 book value and reflect a Net Operating Income yield of 6.4% based on projected 2025/26 income. Completion of the sale is scheduled for August 2025.
Proceeds from the disposal will be reinvested into key growth markets, including the company’s recently announced partnership with Manchester Metropolitan University. The funds will also be used to satisfy the remaining redemption requests in the Unite UK Student Accommodation Fund (USAF).
Since 2022, Unite Students has disposed of 12,000 beds, recycling over £700 million into its core markets and new development opportunities.
The properties were classified as held for sale in the company’s balance sheet as of 31 December 2024. The disposal has already been factored into Unite’s financial guidance, with EPRA EPS for the 2025 financial year remaining unchanged at 47.5–48.25p.
Joe Lister, Unite Students Chief Executive, said: "These disposals increase the alignment of our portfolio to the strongest university cities and continues our disciplined approach to recycling capital. Purpose-built student accommodation continues to attract institutional capital as the growing UK 18-year-old population and improving trends in international recruitment underpin demand for high-quality student accommodation."
