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UK: Unite Group has completed the disposal of the St Pancras Way purpose-built student accommodation (PBSA) scheme in London, and is selling a development site in Bristol.
The buyer is the Unite UK Student Accommodation Fund (USAF). The disposal price of £186 million represents a one per cent discount to the asset’s December 2025 book value. Unite received approximately £115 million in cash consideration and the balance in new USAF units net of retentions for committed capex.
The new USAF units will increase Unite’s ownership of USAF to 32 per cent and the disposal means the group remains invested in a high quality London asset, while enhancing management fee income and releasing capital.
The 571-bed scheme was developed by Unite in 2014 and is fully nominated to University College London for the 2026/27 academic year.
Joe Lister, chief executive of Unite Students, said: “The disposal of St Pancras Way is part of the group’s strategy to accelerate disposals to £300 million to £400 million per annum. The sale to USAF means we remain invested in a high quality London asset, while enhancing management fee income and releasing capital for reinvestment into higher-returning opportunities in accordance with our capital allocation priorities.”
Unite’s board has also approved the return of up to an additional £65 million of surplus capital to shareholders through an extension of the share buyback programme of the company’s ordinary shares of 25p each, which was announced in January.
The buyback programme now stands at £165 million. To date, Unite has acquired 19.3 million shares at an average cost of 504p and in total repurchased £98 million out of the initial £100 million buyback programme.
In line with its plans to scale back on development, Unite also plans to dispose of the Freestone Island development site in Bristol.
CBRE has been appointed to market the build-ready student accommodation site opposite the University of Bristol’s new Temple Quarter campus. The Freestone Island freehold site is demolition complete and fully remediated, meaning a buyer can break ground immediately. Just over an acre in size, the site has planning consent for six self-contained studios and 494 en-suite cluster rooms across three blocks, along with approximately 4,800 square feet of ground floor commercial space.
Highlights:
- Unite Group has completed the disposal of the St Pancras Way purpose-built student accommodation (PBSA) scheme in London for £186 million
- The 571-bed scheme was developed by Unite in 2014 and is fully nominated to University College London for the 2026/27 academic year
- The buyer is the Unite UK Student Accommodation Fund (USAF)
- In line with its plans to scale back on development, Unite also plans to dispose of the Freestone Island development site in Bristol
