Unite Group is in talks to buy student housing provider Liberty Living from the Canada Pension Plan Investment Board, its sole shareholder.
Liberty Living’s net asset value was £1.4bn as at 28 February. It has more than 23,500 beds under management across 51 residences in the UK.
Unite said that talks for a cash and shares deal are at “an advanced stage”.
In the event of a purchase, CPPIB would become a significant shareholder in the enlarged group upon completion.
Part of the cash consideration would be funded through an equity placing, representing no more than 10% of Unite’s current issued share capital.
Unite’s board said it believed the proposed deal will leverage Unite’s “scalable and best-in-class operating platform”. Additionally, it would sustain Unite’s medium-term rental growth outlook and deliver “material” earnings accretion.
It added: “There can be no certainty that any transaction will be agreed and a further announcement will be made if and when appropriate.”
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