Unite Group PLC (The) Unite announces GBP342 million disposal (3067C)
18 Junio 2021 - 01:00AM
UK Regulatory
TIDMUTG
RNS Number : 3067C
Unite Group PLC (The)
18 June 2021
18 June 2021
THE UNITE GROUP PLC
('Unite Students', 'Unite', the 'Group', or the ' Company ')
UNITE ANNOUNCES GBP342 MILLION DISPOSAL TO LSAV JOINT
VENTURE
Unite Students, the UK's leading owner, manager, and developer
of student accommodation, today announces the disposal of two
London properties to its London Student Accommodation joint venture
('LSAV') with GIC for GBP342 million (Unite share GBP171 million),
in line with book values and reflecting an average net initial
yield of 4.0%.
The properties are located in Wembley and Whitechapel and offer
1,358 bed spaces, of which the majority are direct-let to students.
The Wembley property, Arch View House, was completed for the
2020/21 academic year under a forward fund contract. The two
properties had a gross asset value of GBP338 million as at 31
December 2020 and are valued based on stabilised net operating
income of GBP14.2 million for the 2020/21 academic year. The
disposal to LSAV follows the extension of LSAV to 2032 announced on
4 May 2021.
LSAV will fund the acquisition through GBP208 million of equity
from Unite and GIC and a GBP140 million 8-year loan facility
provided by Barings. Upon completion, the Group's see-through LTV
reduces to 30% on a pro forma basis after also adjusting for the
GBP90 million of disposals announced on 30 March 2021. The net
disposal proceeds will initially be used to repay Group debt ahead
of reinvestment into the development pipeline and further growth
opportunities over time. The transaction will result in a small
dilution to 2021 EPRA earnings of 0.4 pence per share. Accordingly,
the Group retains its EPRA EPS guidance of 27-30 pence for
2021.
Unite will continue to manage and operate the properties under
its management agreement with LSAV. Following the transaction LSAV
will hold gross property assets valued at GBP1,677 million and net
assets of GBP1,041 million on a pro forma basis.
Richard Smith, Unite Students Chief Executive, commented:
"I am delighted to announce further growth of our LSAV joint
venture with GIC. This follows our announcement of LSAV's 10-year
extension in May and reflects a strong endorsement of both our
sector-leading operating platform and the purpose-built student
accommodation sector from GIC. The transaction means we have now
delivered over GBP260 million of disposals in the year to date on a
Unite share basis. This provides us with significant capacity to
reinvest in our development pipeline, including opportunities in
London."
ENDS
For further information, please contact:
Unite Students
Richard Smith / Joe Lister / Michael Burt Tel: +44 117 302 7005
Unite press office Tel: +44 117 450 6300
Powerscourt
Justin Griffiths / Victoria Heslop Tel: +44 20 7250 1446
About Unite Students
Unite Students is the UK's largest owner, manager and developer
of purpose-built student accommodation, serving the country's
world-leading Higher Education sector. We provide homes to 73,000
students across 173 properties in 25 leading University towns and
cities. We currently partner with over 60 Universities across the
UK.
Our people are driven by a common purpose: to provide a 'Home
for Success' for the students who live with us. Unite's
accommodation is safe and secure, high quality and affordable.
Students live predominantly in ensuite study bedrooms, with rents
covering all bills, insurance, 24-hour security and high-speed
Wi-Fi. We also hold a five-star British Safety Council audit
rating.
Founded in 1991 in Bristol, Unite Group is an award-winning Real
Estate Investment Trust (REIT), listed on the London Stock Exchange
and a member of the FTSE 250 Index. Unite is invested in and
operates two specialist funds and joint ventures with institutional
investment partners: the GBP3 billion Unite UK Student
Accommodation Fund (USAF) and the GBP2 billion London Student
Accommodation Vehicle (LSAV).
For more information, visit:
Unite's corporate website www.unite-group.co.uk
The student site www.unitestudents.com
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