Unite has exchanged contracts to buy a city centre site in Newcastle on which it plans to build a 600-bed student block.
The listed specialist plans to spend £31m developing the 200,000 sq ft scheme, using funds raised from a June 2013 share placing.
Subject to planning, the scheme will open in 2016.
Unite expects the development to deliver a 9.5-10% yield on cost.
The company is also in negotiations spend the remaining 75% of the share placing on three further projects in regional locations. These deals are expected to exchange in the first quarter.
Richard Simpson, Unite’s managing director for property, said: “This acquisition marks good progress with Unite’s selective regional development programme and is a prime example of how we are investing the proceeds from our 2013 share placing. It is in an excellent central location, well positioned for both Newcastle’s universities and in a market we expect to experience continued growth.”
Unite already has four properties comprising 1,000 beds in Newcastle.
jack.sidders@estatesgazette.com
