Unite Students has sold two student accommodation blocks to USAF for £88.4m.
Both properties, Greetham Street, Portsmouth and Gosford Gate, Coventry, were completed in this year. They are fully let for the 2016-17 academic year on nomination agreements to Portsmouth University and Coventry University respectively, at a yield of 9.3%. Together they provide 1,122 beds.
The disposals increase Unite’s sales in the year to more than £110m on a see-through basis and support Unite’s strategy to recycle capital and maintain leverage at around 30% .
USAF’s acquisition has been funded by a new £100m, five-year facility provided by Wells Fargo.
Unite retains a stake of 23% in USAF.
Joe Lister, chief financial officer of Unite Students, said: “Selling two assets to USAF recycles capital from our development programme to provide capital to deploy into new development opportunities, while also enhancing USAF’s portfolio and returns.”
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