Unite Students has exchanged contracts for the disposal of 14 student accommodation properties in the United Kingdom, comprising 3,436 beds for €202 million ($235 million), of which Unite’s share is €94.7 million ($110 million).
The properties are being sold to Singapore Press Holdings (SPH).
The portfolio is made up of a combination of wholly owned, USAF and LSAV properties located in Plymouth, Huddersfield, Sheffield, Birmingham, Bristol and London. The properties include 10 freehold assets and four leasehold assets. The properties include the 767-bed Central Quay in Sheffield, the 427-bed Snow Island in Huddersfield, and the 378-bed Saw Mill also in Huddersfield.
SPH noted that student accommodation in the United Kingdom stands at the national average of 2.8 students to each bed, with demand expected from both domestic and international students.
As a result of the disposal, Unite is exiting the Plymouth and Huddersfield markets. The transaction is in line with Unite’s strategy to recycle capital through the disposal of assets with lower than average growth prospects and reinvest into developments increasingly focusing on high- and mid-ranked universities, which have the best long-term growth prospects.
Upon completion of the pipeline, high- and mid-ranked universities will account for 90 percent of Unite’s portfolio.
The transaction is expected to be completed this month.
SPH’s core business is publishing of newspapers, magazines and books in both print and digital editions. The acquisition is part of the firm’s expansion into the real estate management market in the United Kingdom, specifically education-related assets, to diversify its income streams.
