Unite disposes of two assets for £100 million to USAF
The Unite Group plc, one of the UK’s leading owners, developers and managers of student accommodation, today announces the disposal of two assets for £100 million (Unite share £75 million) to the Unite UK Student Accommodation Fund (“USAF”), representing a net initial yield of 5.5%. The assets are located in Birmingham and Newcastle and comprise a total of 1,155 beds.
In addition, USAF announces the launch and pricing of £85 million of bonds issued under its existing debt funding platform, the 3.921% bond due June 2025. The new issue is being placed at a premium to par generating total proceeds to USAF of £95 million, reflecting an implied yield of 1.83%. The proceeds will be used to fund further growth in the fund.
Unite’s share of the new debt represents approximately 2% of the Group’s total borrowings, on a see-through basis, as at 30 June 2019. The issue supports a further marginal reduction in the Group’s cost of debt …