Unite Students has sold one of its most expensive properties in London – Woburn Place, WC1 – to GCP Student Living for £135m – a 4.5% yield.
The Bloomsbury residence has 427 bedrooms, most of which are studios. It was converted from an office in 2007 and is also one of Unite’s most expensive in terms of room rates, with bedrooms costing £300-£330 per week.
The disposal forms part of Unite’s strategy to take advantage of the ongoing strength in the investment market and substantially completes plans to recycle £150m-£200m of assets during 2017.
The receipts will be used to fund the development pipeline and further investment into higher quality investments, such as the recently acquired on-campus accommodation at Aston University in Birmingham. The group’s LTV ratio will fall to 32% following the disposal.
Richard Simpson, group property director, said: “We will continue to invest in our highly accretive development pipeline and to target further acquisitions that enhance the quality of our portfolio and support earnings growth. Our strategy remains focused on high quality universities, where we see the most long-term growth.”
Huw Forrest, director in JLL’s student housing team, said: “The student housing market continues to show robust liquidity. The sale of Woburn Place attracted a number of global investors given its unique location in the heart of Bloomsbury.”
JLL advised Unite Student.
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