Unite Group exchanges contracts on £80m Leeds development

Developer and manager of student accommodation, Unite Group, has exchanged contracts to acquire a development site in Leeds on a subject to planning basis, it announced on Friday.

The FTSE 250 firm said the site, located in the city centre near to the University of Leeds and Leeds Beckett University, will provide a home for more than 1,000 students.

It said total development cost is expected to be around £80m, and would be funded from internally generated sources with the new building expected to be open for the 2020 academic year and deliver a yield on cost of 8%.

The transaction reflects Unite's strategy of aligning its property portfolio with high-ranking universities, the board said, where student numbers were growing whilst underpinning further earnings growth and visibility.

It added that the University of Leeds achieved a gold TEF rating in 2017 and was named 'University of the Year' by The Times University Guide.

The site would increase Unite's Leeds portfolio to 4,470 beds, serving a student population of 58,000, and further enhancing Unite's operating efficiency in the city.

In the last five years, Unite's occupancy in the city has been 99% with over 1,200 beds subject to nominations agreements with Leeds universities.

“Leeds is a strong performing market with two high quality universities,” said Unite Group property director Richard Simpson.

“Unite has maintained a 99% occupancy rate in the city over the past five years, signalling we have room to expand and there is demand for the quality, affordable student accommodation we provide.

“We are confident the site in Leeds - subject to planning approvals - will be a great addition for Leeds' growing number of students.”