Student property developer Unite Group sells eight buildings for £133m

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Under chief executive Richard Smith Unite has grown significantly and joined the blue chip FTSE 100 last year

Student accommodation developer Unite Group has sold eight buildings for £133m, it announced this afternoon.

It has sold the blocks with 2,284 student beds in Coventry, Wolverhampton, Birmingham, Exeter and Manchester to Aventicum Real Estate. 

The deal is part of Unite’s disposal programme to cash in assets worth £200m to £300m. 

Unite has completed the sale of seven of the eight properties in the portfolio for £120m.

The disposal of one remaining property in Manchester for £13m is expected to complete later this year.

Chief executive Richard Smith said: “The sale is consistent with our strategy of increasing our exposure to high and mid-ranked universities where demand is strongest.”

In a trading update published in October, Unite said it had let 88 per cent of bed spaces across its portfolio, compared to 98 per cent in 2019/20. 

It said it had seen “healthy letting activity” since A Level results were announced in August, with new lettings partially offset by a higher level of cancellations due to rocketing Covid cases in the UK.