Publications

Unite Group announces €398m disposal of student housing assets to GIC venture
Transactions - JUNE 18, 2021

To read this full article you need to be subscribed to Newsline.

Sign in Sign up for a FREE subscription

Unite Group announces €398m disposal of student housing assets to GIC venture

by Andrea Zander

Unite Students has announced the disposal of two London properties to its London Student Accommodation joint venture (LSAV) with GIC for £342 million (€398 million/$472 million).

The properties are located in Wembley and Whitechapel and offer 1,358 bed spaces, of which the majority are leased directly to students. The Wembley property, Arch View House, was completed for the 2020/2021 academic year under a forward-fund contract.

The two properties had a gross asset value of £338 million (€393 million/$466 million) as of Dec. 31, 2020, and are valued based on stabilized net operating income of £14.2 million (€16.5 million/$19.6 million) for the 2020/2021 academic year.

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. Unite will continue to manage and operate the properties under its management agreement with LSAV.

 

Richar

Forgot your username or password?