Unite Students divests nine PBSA assets for €252m

UK student housing provider Unite Students is selling nine of its properties, totalling 3,656 beds, for £212 mln (€252 mln) to a Lone Star Funds affiliate. 

Causeway View

Of the total amount, £140 mln (€166 mln) will go to Unite
The properties, located in Aberdeen, Leicester, Leeds, Nottingham, and Sheffield, are older (average age 19 years) than Unite's typical holdings and have fewer pre-booked beds for the 2024/25 academic year. 
This sale aligns with Unite's strategy to focus on high and mid-ranking universities and properties with strong growth potential, leading to a full exit from the Aberdeen market. 
The sale price is slightly below the properties' book value and represents a 6.4% yield. Contracts have been exchanged with completion due in August 2025.
Unite plans to reinvest the proceeds in key markets like Manchester, where it recently partnered with a university, and to cover outstanding requests from its USAF fund. 
This sale, expected to close in August 2025, adds to Unite's ongoing portfolio reshaping, with 12,000 beds sold and over £700 mln (€831 mln) reinvested since 2022. 
Joe Lister, Unite Students CEO, commented: “These disposals increase the alignment of our portfolio to the strongest university cities and continues our disciplined approach to recycling capital. Purpose-built student accommodation continues to attract institutional capital as the growing UK 18-year-old population and improving trends in international recruitment underpin demand for high-quality student accommodation“.
Unite Students manages over 150 properties in 23 major university UK cities, housing approximately 70,000 students.