Disposal of Orient House and Greenview Court

RNS Number : 8247J

Unite Group PLC

10 August 2012

 



10 August 2012

 

UNITE MAKES FURTHER NON-CORE ASSET DISPOSALS,

SELLING ORIENT HOUSE AND GREENVIEW COURT

- Both deals demonstrate further success in selective disposal programme -

UNITE, the UK's leading developer and manager of student accommodation, today announces the sale of Orient House, its 158-bed property at Imperial Wharf, West London, to Imperial College London for £20.6 million. The sale price reflects a net initial yield of 5.6%.

Orient House is a non-core asset for UNITE as it is a significant distance from the UNITE Group's other London properties and was sold on behalf of UNITE's joint venture with GIC Real Estate, UNITE Capital Cities. The property was previously leased to Imperial College London and Imperial now intends to use Orient House to extend their graduate accommodation service, GradPad.

UNITE has also sold Greenview Court, an 87-bed property in North London to a private investor for £6 million. This wholly-owned asset does not have en-suite bathrooms and has been leased to a third party for ten years.

Together, these transactions demonstrate further success in UNITE's selective disposal programme.  This is a key element of the Group's strategy to improve the commercial quality of its portfolio, allowing UNITE to focus investment on larger developments in London, such as the 951-bed scheme adjacent to the Olympic Park in Stratford on which it secured planning in December 2011.

Richard Simpson, Managing Director of Property at UNITE, commented: "The completion of these sales marks further good progress in our disposal programme of non-core assets and enables us to recycle our capital to support our focus on our London development pipeline."

Jane Neary, Director of Commercial Services at Imperial College London, said: "We have been developing Imperial's Gradpad portfolio to improve the choice of student accommodation available to postgraduates studying in London. The acquisition of Orient House is an important addition and will provide postgraduates with accommodation in an area we know to be popular with students, within 30 minutes' of two of our campuses." 

- Ends -

Notes to Editors

For more information please contact:

UNITE Sally Quigg, [e-mail] Sophie Joyce, [e-mail]	0117 302 7070 0117 302 7326
FTI Consulting Stephanie Highett Dido Laurimore Toyah Simpson [e-mail]	020 7831 3113

About UNITE

UNITE is the UK's leading operator of purpose built student accommodation with 41,000 beds in over 130 properties across 23 of the UK's strongest university cities. We work in partnership with over 30 higher education providers, as well as renting rooms directly to students.

The foundation for our success is providing high quality, well-located, safe accommodation that is close to university campuses, transport and local amenities. Our rent includes all bills including insurance, heating, electricity and broadband internet.

Founded in 1991, a key factor of our success has been the careful development and management of our building assets. We also operate the UNITE Student Accommodation Fund (USAF) for institutional investors. We employ nearly 1,000 people and our mission is to deliver the best accommodation experience for students, with passion and pride.

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

About UNITE Capital Cities Joint Venture

UCC is a joint venture with GIC Real Estate, the real estate investment arm of the Government of Singapore Investment Corporation (GIC). Established in 2005 to develop new properties, UCC holds a portfolio of 14 properties located in London and Edinburgh valued at over £387 million at 31 December 2011. UNITE has a 30% holding in UCC, with GIC holding the remaining 70%.

 

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