UK: Unite Students has extended its joint venture with Singapore sovereign wealth fund GIC to September 2032.
Both partners will retain a 50 per cent equity stake in the London Student Accommodation Joint Venture (LSAV), which had net assets of £814 million at the end of 2020. LSAV was established in September 2012 with a ten-year term, maturing in September 2022.
Unite has also announced an agreement to settle its performance fee from LSAV in cash during the fourth quarter of 2021. Unite’s share of the performance fee is expected to be between £30 million and £40 million, £9.2 million of which had already been recognised in Unite’s balance sheet.
As part of the extended relationship, Unite and GIC will explore opportunities to expand LSAV, through potential acquisitions of assets.
Richard Smith, chief executive of Unite, said: “I am delighted to agree a long-term extension of our LSAV joint venture with GIC. The transaction provides a strong endorsement of our sector-leading operating platform from GIC, a high calibre investment partner with whom Unite has enjoyed a successful relationship since 2005. The realisation of the LSAV performance fee in 2021 reflects a combination of strong development returns and rental growth by LSAV’s London portfolio since 2012.”
