£5.25m Manchester Acquisition
Unite Group PLC
21 February 2000
Unite steps-up geographical expansion with £5.25
million Manchester acquisition
The Unite Group plc ('Unite'), the specialist provider
of multi-occupancy accommodation for the student sector
and NHS trusts, is pleased to announce the acquisition
of two properties in Manchester, for a total cash
consideration of £5.25 million.
The properties, which were purpose-built in 1996/7,
comprise two halls of residence with a total of 193
bedrooms, close to Manchester Metropolitan University.
Unitefm+, the Group's facilities management arm, will
manage the properties, which are let direct to
students.
The market value of the two properties immediately
following acquisition is £5.6 million, providing an
enhancement to Unite's net assets of £350,000. The
accommodation is expected to generate an initial net
rental income of £500,000 per annum, providing an
initial net yield of 8.9%, which is earnings enhancing
in the current financial year.
NatWest Bank plc provided the senior debt finance for
the purchase, representing a new and important
relationship in the Group's funding strategy.
The Manchester acquisition represents several
milestones in the Group's development: it is Unite's
first purchase of a completed development from a third
party; its first direct let scheme; and the first
scheme implemented by the Group's Leeds office. This
office, Unite's third after Bristol and London, was
opened last September.
The acquisition builds upon Unite's regional expansion
in the South of England, where the Group has recently
acquired two further sites for redevelopment. In
Portsmouth, Unite has acquired Chaucer House, a 1970's
office building for £2.75m, which it intends to
redevelop to provide modern, high quality accommodation
for over 400 students. Completion is expected for
September 2001.
In Exeter, Unite has acquired Northernhay House, a
prominent building in the city centre, for £2.25m,
which it will redevelop to provide a student hall of
residence for the Exeter campus of the University of
Plymouth. Unitefm+ will be responsible for all aspects
of property management after completion, which is
scheduled for September 2000.
Nick Porter, Managing Director of Unite, commented:
'We are delighted to announce this significant
acquisition. In line with our stated strategy, we
continue to focus on our core marketplace whilst
expanding nationally.'
For further information, please contact:
The Unite Group plc 0117 907 8100
Nicholas Porter, Managing Director
Teather & Greenwood Limited 0171 426 9516
Martin Lampshire
Ludgate Communications 0171 253 2252
Tim Davis/Denise Peplow
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