Broker snap: Unite raises funds for London expansion

17th Sep 2009 13:01

Highly geared student accommodation firm Unite has eased its debt position through an £82m fund raising exercise, giving it more scope to take advantage of depressed property prices in London.The company said the proceeds from the firm placing and open offer will be used to fund the acquisition of new development sites between now and the early part of 2011 in London, with the sites coming on stream in 2012.Broker KBC Peel Hunt has reiterated its 'hold' recommendation on the shares. 'Operationally Unite has proven resilient with anticipated rental growth of 10% for the 2009/2010 academic year. Demand for student beds in London remains strong and well in excess of supply, the broker notes.