Stock Market News
Unite Students to buy new site in Middlesex Street
Unite Students, a manager and developer of student accommodation, has exchanged contracts to buy a new development site in Middlesex Street, London, with around 1,000 beds.
The acquisition is subject to achieving a planning consent and is being supported through planning by Kings College London, with a view to securing a long-term nomination agreement.
The new building is planned to be completed for the 2021/22 academic year and will provide "much needed" accommodation options for students. Total development costs are estimated to be around £195m with a development yield of around 6.25%, which is in line with the company's target for University Partnership transactions.
Unite said the London student market remains "significantly" undersupplied with only 81,000 purpose-built beds currently in operation.
Chief executive officer Richard Smith said: "This is our first major development in London since 2013 and represents an important return to the City with the support of one of the UK's leading universities. This reflects our strategy of building long term partnerships with the UK's top universities in strategically important locations where there is a shortage of affordable, high-quality student accommodation."
Numis said the acquisition not only delivers a strong return and extends the earnings growth profile, but will also maintain the group's focus on delivering a high quality income stream.
"Unite has strong momentum and we believe the current share price is an attractive entry point despite the headline premium to NAV given the visibility over earnings growth and future NAV contribution from developments, plus the explicit support Unite enjoys from its university partners."
At 0845 GMT, the shares were up 1.3% to 795p.
The acquisition is subject to achieving a planning consent and is being supported through planning by Kings College London, with a view to securing a long-term nomination agreement.
The new building is planned to be completed for the 2021/22 academic year and will provide "much needed" accommodation options for students. Total development costs are estimated to be around £195m with a development yield of around 6.25%, which is in line with the company's target for University Partnership transactions.
Unite said the London student market remains "significantly" undersupplied with only 81,000 purpose-built beds currently in operation.
Chief executive officer Richard Smith said: "This is our first major development in London since 2013 and represents an important return to the City with the support of one of the UK's leading universities. This reflects our strategy of building long term partnerships with the UK's top universities in strategically important locations where there is a shortage of affordable, high-quality student accommodation."
Numis said the acquisition not only delivers a strong return and extends the earnings growth profile, but will also maintain the group's focus on delivering a high quality income stream.
"Unite has strong momentum and we believe the current share price is an attractive entry point despite the headline premium to NAV given the visibility over earnings growth and future NAV contribution from developments, plus the explicit support Unite enjoys from its university partners."
At 0845 GMT, the shares were up 1.3% to 795p.
Related share prices |
---|
Unite Group (UTG) share price |
Stock News headlines are gathered from financial news sources around the web. Views and opinions on each item are from their respective authors and website. They are not opinions of LiveCharts.co.uk
Get a free widget for your website with our latest headlines.
You can now add our live prices and new headlines to your website.The news widget features quotes for Oil prices, spot Gold price and Indices plus a choice of news channel for healines.
Top Shares pages
- Share price quotes
- Share charts
- Share watch list
- Company Results Calendar
- Top Large UK Shares
- UK Market Sectors
- Stock market news
- Company news
- Share tips
- A-Z company search
More share features
POPULAR Share Prices
- Royal Mail share price
- Lloyds share price
- HSBC share price
- Barclays share price
- Prudential share price
- Santander share price
- NEXT share price
- Diageo share price
- BP share price
- Vodafone share price
- British Airways
- Centrica share price
- Tesco share price
- Taylor Wimpey Share Price
- National Grid
- GKP Share Price
- Marks and Spencer
- Rolls Royce
- Rio Tinto
- THG Share Price
- Aviva Share Price
- Boil Share price
- Easyjet Share Price
- Genedrive Share Price
- SSE Share Price
- IAG Share Price
- Boohoo share price
- HE1 share price
- AVCT share price
- BOOM share price