Unite Group and GIC extend LSAV joint venture
Unite Students has extended its joint venture with Singapore’s GIC by 10 years to September 2032. It also announces an agreement to settle its performance fee from the London Student Accommodation Joint Venture (LSAV) in cash during fourth quarter 2021.
LSAV was established in September 2012 with a 10-year term maturing in September 2022. Unite and GIC have agreed to a 10-year extension following a successful partnership that has delivered strong development returns and growth in rental income. Both Unite and GIC will retain a 50 percent equity stake in LSAV, which had net assets of £814 million (€941 million/$1.13 billion) as of Dec. 31, 2020 (Unite’s share: £407 million/€470 million/$565 million).
Unite’s performance fee will be paid in cash in fourth quarter 2021, based on valuations and cash flows to September 2021. Unite’s share of the performance fee is expected to be approximately £30 million to £40 million (€35 million to €46 million/$42 mil