Unite Students has sold a portfolio of nine student accommodation properties, comprising 3,656 beds, for £212m (Unite share: £140m) to an affiliate of Lone Star Funds.
The disposal is part of the group’s strategy to increase alignment to high and mid-ranked universities and properties with the strongest prospects for sustainable long-term rental growth. The disposal will see the group fully exit the Aberdeen market, with other assets in Leicester, Leeds, Nottingham and Sheffield.
The disposals price is a c.1% discount to the December 2024 book value and reflects a net operating income yield of 6.4% based on 2025/26 income. The sale is expected to complete in August 2025.
Proceeds will be recycled into investment activity in markets the company has identified as the strongest, including its recently announced university partnership with Manchester Metropolitan University, and used to satisfy the remaining redemption requests in USAF.
Since 2022, the group has now sold 12,000 beds, recycling over £700m into its strongest markets and new investment opportunities.
Joe Lister, Unite Students chief executive, commented: “These disposals increase the alignment of our portfolio to the strongest university cities and continues our disciplined approach to recycling capital. Purpose-built student accommodation continues to attract institutional capital as the growing UK 18-year-old population and improving trends in international recruitment underpin demand for high-quality student accommodation.”
