Student housing developer Unite Group has put a £70m portfolio of non-core assets up for sale.
The seven properties, in London and Manchester, comprise 680 beds and are being sold as part of the group’s ongoing strategy to sell £150m of assets by the end of 2012.
Proceeds from the sale will be used to fund future development. The group wants to concentrate its activity on large purpose-built student housing in the capital.
Lee McLean, director of asset management at Unite, said: “We have chosen to market these properties at this time due to the high-level of demand for prime assets within these cities. The buoyant and attractive student accommodation sector coupled with a restrictive planning environment for larger schemes, will allow us to realise asset value.”
The London properties, in King’s Cross, Haringey and Camden Lock, provide an annual income of £2.9m, while the Manchester properties provide £2.2m a year.
Unite will hand over the management of the properties with the sale.
Marcus Roberts, head of student accommodation investment at Savills, which is handling the disposal, said: “The student accommodation sector continues to deliver strong returns compared to other mainstream classes. Transaction activity in the sector has increased steadily.”
? Alhi United Bank’s shariah-compliant student fund has bought a 316-bed property from Berkeley Group for £30m – a 6.5% yield. The Dorset House scheme in Oxford is scheduled for completion in August next year. Jones Lang LaSalle advises AUB; Savills acted for Berkeley.
joanna.bourke@estatesgazette.com
