Unite Students sells 8 properties for £133m

Accommodation provider Unite Students said it had sold eight properties to Aventicum Real Estate for £133m.

The company on Tuesday said the portfolio comprised 2,284 beds and its disposal was part of the group's management strategy which would see it exit “a number of subscale markets, while improving alignment to high and mid-ranked universities”.

The disposals are priced at a net operating income yield of 6.5% and a 2% discount to prevailing book value.

Chief executive Richard Smith said the sale was part of Unite’s plan to dispose of £200m - £300m of assets in 2021.

“The sale is consistent with our strategy of increasing our exposure to high and mid-ranked Universities where demand is strongest, while delivering operational efficiencies that contribute towards our target for an improvement in our EBIT margin to 74% by the end of 2023," he added.