UK: Student accommodation provider Unite Group has sold a portfolio of nine properties totalling 3,656 beds for £212 million to an affiliate of Lone Star Funds. Unite’s share of the proceeds is £140 million.
Located across Aberdeen, Leicester, Leeds, Nottingham and Sheffield, the assets have an average age of 19 years and nomination agreements in place for just 11 per cent of beds for the 2024/25 academic year.
Unite said the deal aligns with its strategy to focus on assets in cities with high-ranking universities and stronger rental growth prospects. Following the sale, Unite will fully exit the Aberdeen market.
The transaction, set to complete in August 2025, was priced at around a 1 per cent discount to the December 2024 book value and reflects a net operating income yield of 6.4 per cent based on 2025/26 income.
Proceeds will be reinvested in key markets, including the group’s partnership with Manchester Metropolitan University, and used to address remaining redemption requests in its USAF fund.
Unite has now sold 12,000 beds since 2022, recycling over £700 million into higher-performing assets.
The properties were classified as held for sale in the 2024 year-end accounts. The company’s full-year earnings guidance remains unchanged, with EPRA EPS forecast at 47.5–48.25p for 2025.
Highlights:
• Unite Students sells £212 million student housing portfolio to Lone Star affiliate
• Nine UK properties with 3,656 beds included in the deal
• Portfolio spans Aberdeen, Leicester, Leeds, Nottingham, and Sheffield
