Unite Group Disposes Two London Properties To London Student Accommodation JV

Unite Group plc (UTG.L), on Friday, said is disposed two London properties to its London Student Accommodation joint venture or LSAV with GIC for £342 million, in line with book values and reflecting an average net initial yield of 4.0%.

The properties are located in Wembley and Whitechapel and offer 1,358 bed spaces, of which the majority are direct-let to students. The two properties had a gross asset value of £338 million as at 31 December 2020 and are valued based on stabilised net operating income of £14.2 million for the 2020/21 academic year.

The company further noted that LSAV would fund the acquisition through £208 million of equity from Unite and GIC and a £140 million 8-year loan facility provided by Barings.

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