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UK: Unite and Empiric have agreed terms on a cash and shares deal which values the latter at £723 million.
Immediately following completion of the deal – expected to be in Q2 2026 once the necessary approvals are secured – Empiric shareholders will hold approximately 10 per cent of the issued share capital of the enlarged group, with existing Unite shareholders holding 90%.
Unite said that the acquisition of Empiric’s “high quality, complementary portfolio provides Unite with greater scale and enhanced growth opportunities aligned to the UK’s strongest universities”.
The firm added that Empiric’s differentiated customer proposition will enable Unite to appeal to a broader customer base “at pace and at scale” and at a discount to estimated replacement cost, through increased exposure to the attractive segment for “returner” students – non-first year undergraduates and postgraduate students – which is largely unaddressed by the conventional PBSA operated by itself.
Completion of the deal would result in a £10.5 billion combined portfolio, of which Unite’s share would be £7.4 billion, with around 75,000 beds, 92 per cent of them located in Russell Group university cities. Unite said the deal will unlock £13.7 million of cost saving synergies.
Mark Pain, chair of Empiric, said: “Over the last few years, the Board and management of Empiric has implemented a successful transformation strategy, aligning the company’s portfolio to the best locations in the UK’s strongest university cities. Unite has identified Empiric’s differentiated proposition through its Hello Student brand, as well as its focus on returner and post graduate students, as clear strategic pillars through which to grow its business.
“The board of Empiric believes the firm and recommended offer from Unite is highly compelling for Empiric’s shareholders as it will deliver material accretion to earnings and dividends per share, deliver synergy benefits and provide superior access to capital to drive growth, whilst enabling shareholders to remain invested in a portfolio of highly attractive UK student accommodation assets, he added.
Richard Huntingford, chair of Unite, said: “Acquiring Empiric’s high-quality and complementary portfolio accelerates our growth into the attractive returner student segment, enabling us to better serve students throughout their academic journey. Unite is uniquely positioned to unlock significant synergies and accelerate earnings growth for both sets of shareholders. Alongside university partnerships and our significant development pipeline, the acquisition provides a new growth driver to deliver enhanced scale and long-term value for shareholders.”
Highlights:
• Unite and Empiric have agreed terms on a cash and shares deal which values the latter at £723 million
• Completion of the deal is expected to be in Q2 2026
• The compbined group will have around 75,000 student beds under management
