UK: Student housing provider Unite has raised £300 million for two new developments as its CEO warned of a worsening shortage of student accommodation.
The group has raised funds for a 952-bed property in Stratford, east London, set to open in 2027 which will include a new entrance for Stratford tube station, and a 614-bed property in Bristol.
CEO Richard Smith has said he hopes the developments can help ease a shortage of student housing caused by HMO landlords exiting the sector amid new regulations and rising mortgage interest rates.
He added that, with Unite’s properties full for the 2023-24 academic year, some students might find themselves living much further away from their universities than they had planned.
“There will be cases where students will not be able to find a property they can live in in the locations they would like,” he said. “There were some reports last year of students having to secure housing in the next town over, and we think there’ll be more of that. We’re seeing increased urgency. You look at our reservation performance, we’ve been consistently ahead. That does indicate increased urgency. There’s an awareness that there’s some urgency.”
The fundraise for the two new developments included retail investors – a first for the business. The inclusion of retail investors was facilitated by investment platform PrimaryBid.
James Deal, PrimaryBid’s head of UK, said: “It is fantastic to see Unite Group offering new and existing shareholders the opportunity to participate in its fundraising. Rewarding investors for their long-standing support is obvious and part of pre-emption. With technology, we can facilitate such inclusion for issuers with ease.”
