Unite student fund raises £250m
Student accommodation manager Unite Group said its Unite UK Student Accommodation Fund (USAF) had raised £250m of new equity from external investors.
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The proceeds represent 17% of USAF's NAV at March 2019. Unite is selling three assets to USAF for £111m, representing a net initial yield of 5.5%.
Unite said it was not participating in raising in order to retain funding capacity for its secured development and partnerships pipeline and future investment opportunities.
Unite's stake in USAF will reduce to 23% from 25% when the equity is fully drawn. These sales form part of planned disposals of £100m - £150 million during 2019.
“Following the acquisition, USAF has significant further investment capacity of £250m - £300m and has a number of further investment assets that are currently under offer from third parties that it expects to acquire over the coming few months," Unite said.