UK PBSA merger to create €12b group

UK student accommodation specialist Unite Group is set to acquire rival Empiric Student Property in a deal that will create a combined portfolio valued at £10.5 bn (€12.2 bn).

London Haylfoft

Empiric shareholders will receive 0.085 new Unite shares and  £0.32 in cash for each share, valuing Empiric at £634 mln (€736 mln), rising to £723 mln (€840 mln) including dividends.
Following the acquisition, Empiric shareholders will hold a 10% stake in the merged company and will also receive dividends for the second, third, and fourth quarters. 
The deal, expected to be completed in Q2 2026, requires approval from at least 75% of Empiric shareholders and clearance from the UK Competition & Markets Authority (CMA).
Empiric's board of directors plans to unanimously recommend that shareholders approve the takeover, which will be implemented through a court-approved scheme of arrangement.
The merged company will be present in the UK's strongest universities, with around 75,000 beds on a combined basis, of which 92% are located in Russell Group cities.
Unite's acquisition of Empiric's portfolio offers significant scale and enhanced growth potential, particularly within the UK's top university markets. The deal is projected to boost earnings and dividends, providing improved returns for shareholders of both companies, while preserving financial stability through substantial cost synergies of £13.7 mln (€15.9 mln).
Mark Pain, chair of Empiric, stated: "Unite has identified Empiric's differentiated proposition through its Hello Student brand, as well as its focus on returner and post-graduate students, as clear strategic pillars through which to grow its business. The Board of Empiric believes the firm and recommended offer from Unite is highly compelling for Empiric's shareholders as it will deliver material accretion to earnings and dividends per share, deliver synergy benefits, and provide superior access to capital to drive growth, whilst enabling shareholders to remain invested in a portfolio of highly attractive UK student accommodation assets."
Richard Huntingford, chair of Unite, added: "Acquiring Empiric's high-quality and complementary portfolio accelerates our growth into the attractive returner student segment, enabling us to better serve students throughout their academic journey. Unite is uniquely positioned to unlock significant synergies and accelerate earnings growth for both sets of shareholders. Alongside university partnerships and our significant development pipeline, the acquisition provides a new growth driver to deliver enhanced scale and long-term value for shareholders."