Completion of assets sale and UCC JV investment

RNS Number : 9011H

Unite Group PLC

23 May 2014

 



Press release 23 May 2014

THE UNITE GROUP PLC

("Unite Students", the "Group", or the "Company")

UNITE STUDENTS ANNOUNCES COMPLETION OF OCB ASSETS SALE AND INVESTMENT INTO UCC JOINT VENTURE

Unite Students, the UK's leading developer and manager of student accommodation, announces that following last month's exchange of unconditional contracts to sell its three Oasis Capital (OCB) joint venture assets, the sale has now been formally completed. The sale price of £174 million is supportive of the existing book value and is in line with expectations. Unite Students will have no operational involvement in the assets with immediate effect.

As previously announced the joint venture has used the proceeds to repay outstanding debt and distributed the net proceeds to Unite Students and its joint venture partner, OCB. As part of the transaction, Unite has recycled its share of the net proceeds of £18 million, together with the investment of a further £8 million, into its London-focused Unite Capital Cities (UCC) joint venture with GIC, in order to increase its share to a 50:50 holding. This equalisation process will enable the merger of UCC and LSAV (London Student Accommodation Vehicle) later this year thereby forming a single investment vehicle.

The sale of the OCB joint venture assets and the subsequent merger of the Group's two GIC joint ventures will deliver Unite Students' plan to simplify its co-investment vehicles by reducing the number from four to two.

Richard Simpson, Managing Director of Property for Unite Students, said: "We are pleased to announce the completion of this asset disposal, which is line with our longer term plan to simplify our investment vehicles by using the proceeds to equalise our share in UCC.

The strength and depth of interest in this portfolio demonstrates the continued growth in investor appetite in the purpose built student accommodation sector, with the volume of transactions almost doubling since 2011."

ENDS

For further information, please contact:

Unite Students Sally Quigg, Head of Corporate Communications Rebecca Murch, Corporate Communications Manager	Tel: [phone] Tel: [phone]
Bell Pottinger Victoria Geoghegan Nick Lambert Elizabeth Snow	Tel: [phone]

Notes to editors:

About Unite Students

Unite Students is the UK's leading manager and developer of student accommodation. We provide a home for 41,000 students in over 120 purpose built properties across 23 of the UK's strongest university towns and cities. We have nearly 1,000 employees and work in partnership with over 50 higher education providers, as well as renting rooms directly to students. In May 2013 Unite Students was awarded Student Accommodation Provider of the Year at Property Week's RESI Awards.

Our culturally-diverse customers are at the heart of our business and we aim to provide a home for students that supports their success, whether defined as academic achievement, personal growth or employability. Our properties provide high quality, well-located, safe accommodation that is close to university campuses, transport and local amenities. Our rent includes a study bedroom, all bills, insurance, 24-hour security and high speed Wi-Fi throughout our buildings.

Founded in 1991, Unite Group is a FTSE 250 company listed on the London Stock Exchange. We are pursuing a sustainable growth strategy designed to make the most of the resilient nature of the student accommodation sector. We aim to maintain the strongest brand in the sector and operate the highest quality portfolio through consistent investment in and improvement to our operating platform, highly selective development activity, asset management initiatives and portfolio recycling.

In addition to our wholly owned properties, we are also invested in and operate a small number of specialist funds and joint ventures with institutional investment partners, the largest of which is the £1.35 billion Unite UK Student Accommodation Fund (USAF).

The Group's charitable trust, the Unite Foundation, supports widening access to higher education, integrating students into the community and employability. It provides scholarships for disadvantaged students at seven universities and volunteering opportunities for our students and employees through partner organisations.

For more information visit our corporate website: www.unite-group.co.uk or www.unite-students.com.

 

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