New London Development

RNS Number : 2491O

Unite Group PLC

18 September 2013

 



Press Release 18 September 2013

UNITE ANNOUNCES NEW LONDON DEVELOPMENT

- c.700 new beds to be developed in well located London site

- Achieves 65% of LSAV target development pipeline

The UNITE Group plc, the UK's leading developer and manager of student accommodation, today announces that it has exchanged contracts with Schroders Real Estate Investment Trust (SREIT) for the acquisition of a one acre development site in Wembley, North West London. The site has been acquired for £7.4 million, subject to planning consent, with an estimated total development cost of £47 million and is projected to deliver a 9% development yield in line with the Group's target levels. The site is currently occupied by a car park and will provide a home for circa 700 students along with 10,000 sq ft of retail space, targeted to open in 2016.

The property will be developed by the London Student Accommodation Vehicle (LSAV), UNITE's 50:50 joint venture with GIC. Wembley Park is the third scheme to be secured within the LSAV joint venture following the acquisition of sites in Stratford and Islington, and achieves 65% of LSAV's target pipeline. The remaining schemes within the joint venture are on track to be secured by mid-2014.

The well-located site is close to Wembley Park Underground Station (Zone 4) just 13 minutes from Central London and within easy access to the Capital's universities via the Jubilee and Metropolitan Lines. The site sits within the Wembley Park regeneration area which will see new homes, offices and shops built around the landmark Wembley Stadium to create a dynamic new neighbourhood and community. It is in a prominent location close to the new 350,000 sq ft London Designer Outlet (due to open in 2013) and the student accommodation will be marketed at a very competitive price point within the area when it opens.

The property will include communal space designed to enhance students' living and learning experience, UNITE's new specification en-suite cluster rooms, WiFi internet and environmental features, such as LED lighting, throughout.

Richard Simpson, Managing Director of Property for UNITE, commented:

"This development is the third scheme to be secured as part of our LSAV joint venture, representing 65% of our target, and demonstrates UNITE's knowledge and experience in sourcing the best locations for student accommodation. As well as being a key milestone in the Group's development strategy, this site is close to the shops, entertainment and excellent transport links of Wembley Park, including the London Designer Outlet, and will strongly appeal to students."

ENDS

For further information, please contact:

The UNITE Group plc Sally Quigg, Head of Corporate Communications	Tel: [phone]
Bell Pottinger Victoria Geoghegan Nick Lambert Elizabeth Snow	Tel: [phone]

About The UNITE Group 

UNITE is the UK's leading developer and manager of student accommodation, with a business model that focuses on two core areas:

1.       Development and Asset Management: UNITE undertakes the acquisition, planning and development of purpose-built student accommodation in the UK. Through the continuous assessment of quality and location of its investment portfolio, UNITE is well positioned to deliver value-adding strategies to those assets where further opportunities are identified. Working on behalf of its partners, UNITE acts as Fund Manager for the UNITE UK Student Accommodation Fund in which it owns a 16.3% share. UNITE also manages a number of Joint Venture partnerships.

2.       Professional property management: UNITE is home to 42,000 students in over 120 properties across 23 of the UK's strongest university cities, and has consistently proven high occupancy levels across its portfolio.

UNITE works closely with higher education institutions in order to deliver high quality, well-located student accommodation at affordable prices in strong higher education markets. In May 2013 UNITE was awarded Student Accommodation Provider of the Year at Property Week's RESI Awards. UNITE has also been recognised by the Global Real Estate Sustainability Benchmark (GRESB) as a regional sector leader for sustainability.

Founded in 1991, UNITE is a FTSE 250 company listed on the London Stock Exchange (UTG). For more information, please visit www.unite-group.co.uk  or www.unite-students.com   

About LSAV

The London Student Accommodation Venture (LSAV) is a 50:50 joint venture between UNITE Group plc and GIC. It was established in September 2012 and has a maturity date of September 2022. The vehicle plans to invest approximately £330 million in London development activity by 2017 with all sites secured by mid-2014. LSAV is the primary vehicle through which UNITE will undertake development activity in London and will have a right of first refusal over UNITE's London development projects until such time as its capital investment targets are met. UNITE and GIC can agree to extend the development programme by a further £200 million once the existing capital has been committed.

 

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