Unite Students has sold a portfolio, comprising nine properties with 3,656 beds, for £212m to an affiliate of Lone Star Funds. Unite’s share of the deal amounts to £140m.
The portfolio, which includes sites in Aberdeen, Leicester, Leeds, Nottingham and Sheffield, marks a strategic disposal as Unite sharpens its focus on high and mid-ranked university markets with stronger long-term rental growth prospects.
The assets have an average age of 19 years and limited nomination agreements (11% vs Unite’s average of 57%). Completion is expected in August 2025.
The sale, at a modest 1% discount to December 2024 book value and a 6.4% NOI yield (based on 2025/26 income), will see Unite fully exit the Aberdeen market.
Proceeds will be reinvested into priority locations, including a new university partnership with Manchester Metropolitan University, and help meet outstanding redemption requests in its USAF fund.
Since 2022, Unite has sold 12,000 beds, recycling over £700m into its strongest-performing markets.
Joe Lister, chief executive of Unite Students, said: “These disposals increase the alignment of our portfolio to the strongest university cities and continue our disciplined approach to recycling capital.”
The sale is reflected in Unite’s guidance for 2025 EPRA EPS of 47.5–48.25p, which remains unchanged.
Image: Unite Students
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