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UK: Unite Group has appointed Goldman Sachs to accelerate the disposal of PBSA assets as it repositions towards a higher-quality portfolio.
The Bristol-based group, which is the UK’s largest owner and manager of purpose-built student accommodation (PBSA), is on track to deliver £300 to £400 million of asset disposals in 2026.
It has completed or placed under offer £130 million of assets and is marketing a further £500 million worth of properties for disposal in the next six to 12 months on a Unite share basis.
Chief executive Joe Lister said: “Our strategy is focused on increasing our alignment to the UK’s leading universities where we see the strongest prospects for housing demand and future rental growth. To achieve this, we have already increased our disposal programme and the Board is exploring options to further accelerate our transition to a more focused, higher-quality portfolio, which would release surplus capital for reinvestment into share buybacks or University Partnerships consistent with our capital allocation framework.”
The planned disposals include a portfolio of around 7,000 beds in cities Unite wants to exit and lower-growth locations, which has attracted strong initial interest from investors. The portfolio has a lower level of occupancy, nomination agreements and operating margins than the wider estate.
Unite provides accommodation for 72,000 students in 29 university towns and cities and partners with more than 60 universities across the UK.
Unite said 74 per cent of beds are now reserved for the 2026/27 academic year, compared with 76 per cent at the same time last year.
The company reiterated guidance for occupancy and rental growth at the lower end of 93 to 96 per cent and two to three per cent ranges for the 2026/27 academic year.
It has deployed £85 million of a £100 million share buyback programme, with further capital expected to be deployed as disposals complete.
Highlights:
- Unite Group has appointed Goldman Sachs to accelerate the disposal of PBSA assets as it repositions towards a higher-quality portfolio
- The planned disposals include a portfolio of around 7,000 beds in cities Unite wants to exit and lower-growth locations
- Unite provides homes to 72,000 students in 29 university towns and cities and partners with more than 60 universities across the UK
