Unite's student accomodation fund acquires another 2,904 beds

9th Jul 2014 07:59

The Unite UK Student Accommodation Fund (USAF), which is 21%-owned by FTSE 250-listed Unite Group, has acquired a 2,904 bed student accommodation portfolio for £137m.The deal, which was funded through a combination of cash resources and existing debt facilities, equates to a net initial yield of 6.3%.The acquisition increases the fund's property portfolio value by 10% from £1.375bn to £1.512bn, comprising 24,577 beds in 68 properties across 22 UK towns and cities.Two of the acquired properties, namely in Bath and Portsmouth, are already operated by Unite under sale and leaseback arrangements so the group's operational portfolio will increase by a net 1,862 bed spaces. These represent approximately 35% of the value of the acquired portfolio.In the 2014/15 academic year, Unite will now be operating 43,953 beds, up from 41,072 the previous year. The acquisition will be immediately accretive to USAF's earnings and marginally accretive to its net asset value.Unite Chief Executive Mark Allan said: "We are delighted that USAF has been able to complete this important acquisition from Cordea Savills. "The combination of Unite's existing operational presence across the country, USAF's financial capacity and the group's position as lessee on two highly reversionary assets means that a combination of Unite and USAF is uniquely well placed to unlock the potential of an excellent regional portfolio." NR