UNITE hits 2012 disposal targets

published 5 December 2012

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%.

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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."