The projects £170m proceeds of the share placing will be used to fund two partnership transactions with Oxford Brookes University and Kings College London.
In partnership with Oxford Brookes University, Unite Group is planning a £73m residence for 887 students. Planning is in place and target opening is in 2019.
In addition a £195m development for approximately 1,000 students in Middlesex Street, London E1 is being supported through planning by Kings College London. Target opening here is in 2021.
The company says that the outlook for the student accommodation sector remains positive, with student numbers continuing to climb above 1.8 million across the UK. It has a pipeline of 9,400 beds to be delivered over the next four years.
Unite Group made £229.4m pre-tax profit in 2017 (2016: £201.4m). This includes property revaluations and disposal profits of £169.2m (2016: £201.4m and £136.3m respectively).
During 2017, the company ‘opened’ 2,150 new beds, added 3,067 beds to its portfolio through the acquisition of Aston Student Village and sold 4,800 beds. The value of Unite Group’s investment portfolio is £2.4bn as at 31st December 2017.