Unite Students buys Durham development

Manager and developer of student accommodation, Unite Students, has acquired an asset under development in Durham for £34m.

The 'forward funded' asset will be opened in September 2018 and will provide a home for 363 students. It is expected to deliver a yield on cost of 6.4% in its first year of operation and based on current valuations, it will be valued at a yield of 5.5%, resulting in a profit on cost of approximately £5m, £1.1m of which will be Unite’s share.

The acquisition, which is being made by Unite Students Accommodation Fund, will be funded with its share of proceeds from recent disposals.

Group property director Richard Simpson said: "This latest acquisition further extends our high-quality development programme in a strong regional location where there is strong demand for purpose built student accommodation. Our strategy remains focused on high quality Universities like Durham, where we see sustainable growth."