USAF to buy 2,100 bed student accommodation portfolio for £271m

15th Jun 2015 07:03

Unite UK Student Accommodation Fund (USAF), in which Unite Group has a 22% stake, has reached an agreement to buy a 2,100 bed student accommodation portfolio for £271m.Unite Group said the acquisition will be funded in cash from the proceeds of USAF's recent equity raise, announced on 19 May, and will complete by 30 June.The deal increases USAF's property portfolio value by 16% to £1.91bn from £1.64bn, comprising 26,920 beds in 76 properties across 25 UK towns and cities.The acquisition will be immediately accretive to USAF's earnings per unit and accretive to its net asset value per unit within one year, the company said.Chief executive officer Mark Allan said: "Following its recent capital raising, we are delighted that USAF has been able to complete the acquisition of one of the highest quality portfolios in the market."The portfolio is highly complementary to USAF's existing portfolio and we see real opportunities to drive additional value through the introduction of our brand and operating platform as well as specific asset management opportunities."