UNITE hits 2012 disposal targets

Student accommodation group UNITE has hit its disposal targets for 2012 after completing the sale of two assets in London and Glasgow.

Student accommodation group UNITE has hit its disposal targets for 2012 after completing the sale of two assets in London and Glasgow.

The company and its co-investment vehicles has make £127m of non-core asset sales in the year to date, in line with book value, meaning that it is on track to hit its target to cut leverage to around 50% loan-to-value by the end of the year.

This total includes today's £77m of sales to co-investment vehicles, which comprise the sale of the 528-bed North London, Tottenham Hale, to the London Student Accommodation Venture for £46m and the £31m sale of the 477-bed Kelvin Court in Glasgow. The prices achieved represent an average net initial yield of 6.5%.

The company also announced the sale of the 520-bed property, New Carnegie Court, in Aberdeen the 34-bed Camden Road property in London to third-party purchasers for a combined £39m.

"These four transactions secure completion of our targeted disposals of both non-core assets to third party purchasers in 2012 and planned sales to co-investment vehicles, and mean that we are on track to reduce leverage in line with plan," said UNITE's Managing Director of Property, Richard Simpson.

"The cumulative sales value is in excess of £200m and is supportive of current valuations demonstrating the continued attractiveness of the purpose built, student accommodation sector to a growing number of UK and international investors."

Recommended

Broker safety – your questions answered
Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
How demographics affects stock valuations
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Do you own shares in Sirius Minerals? Here’s what you need to do now
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020
Why investors should be “cautiously bullish” for 2020
Stockmarkets

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

Will a second wave of Covid lead to another stockmarket crash?
Stockmarkets

Will a second wave of Covid lead to another stockmarket crash?

Can we expect to see another lockdown like in March, and what will that mean for your money? John Stepek explains.
18 Sep 2020
Here’s why you really should own at least some bitcoin
Bitcoin

Here’s why you really should own at least some bitcoin

While bitcoin is having a quiet year – at least in relative terms – its potential to become the default cash system for the internet is undiminished, …
16 Sep 2020
James Ferguson: How bad data is driving fear of a second wave of Covid-19
UK Economy

James Ferguson: How bad data is driving fear of a second wave of Covid-19

Merryn and John talk to MoneyWeek regular James Ferguson about the rise in infections in coronavirus and what the data is really telling us.
17 Sep 2020