Scape secures seal of approval for Guildford co-living scheme
Scape Student Living has won planning permission for a 110-unit co-living development in Surrey …
Unite posts half year profit fall but hikes dividend
Student accommodation giant Unite posted a 12% fall in first-half profit owing to lower property valuation gains, though its underlying earnings rose and it boosted its dividend.
Pre-tax profit for the six months to the end of June fell to £125.5m, down from £142.5m on-year …
Fusion Student plans overseas expansion ahead of Brexit
Student accommodation provider Fusion Students is preparing to expand overseas to combat a possible drop in student volume following Brexit …
The Unite Group Plc: Acquistion of Liberty Living Group Plc
The Unite Group plc (together with its subsidiary undertakings, the “Group”) today announces that it has agreed to acquire Liberty Living Group Plc (together with its subsidiary undertakings, “Liberty Living”) from Liberty Living Holdings Inc. (“CPPIB Holdco”), a wholly owned subsidiary of Canada Pension Plan Investment Board (“CPPIB”) (the “Acquisition”). The Liberty Living portfolio (defined below) is a high quality portfolio of purpose built student accommodation comprising 24,021 beds and was independently valued at £2.2 billion as at 31 May 2019.
The Acquisition has been priced on a NAV-for-NAV basis (subject to certain adjustments) for a total consideration of £1.4 billion. The consideration is comprised of a combination of cash and shares that will result in CPPIB Holdco receiving a stake of 20% in the Enlarged Group upon Completion.
Unite also today announces a proposed placing of 26,353,664 new ordinary shares (the “Placing”) to part fund the cash component of the Acquisition consideration.
Transaction highlights …..
TPG Real Estate Partners and Round Hill Capital acquire a portfolio of 13 student accommodation assets in Germany
TPG Real Estate Partners (“TREP”) the dedicated real estate equity investment platform of global alternative asset firm TPG, and Round Hill Capital, a leading real estate investment, development and asset management firm, announced today that they have acquired, through a newly-formed strategic venture (“The Venture”), a portfolio of 13 student accommodation assets in Germany. The assets, which were formerly owned by student housing platform Deutsche Real Estate Funds, were acquired through a mutual agreement with all stakeholders. Financial terms of the transaction were not disclosed.
The assets acquired by the Venture consist of c.2,100 units across nine cities in Germany (Berlin (3), Bochum, Bremen, Essen, Halle, Kiel (2), Ludwigsburg, Siegen and Stuttgart (3)). The assets are generally situated within easy commuting distance to some of Germany’s major universities and key amenities across each city. The Venture will leverage TREP and Round Hill Capital’s experience managing and investing in European real estate portfolios to enhance the properties through refurbishments and operational improvements. TREP and Round Hill Capital will continue to target opportunities in line with the Venture’s strategy to acquire and reposition existing assets as well as develop new purpose-built properties across select university cities and towns in Germany where there is a strong and increasing demand for high-quality, well-managed student housing but persisting supply constraints …
Client visit to Nairobi
We had a fantastic visit to Nairobi to assess the student accommodation being delivered by Acorn Management Services Ltd, on behalf of our client OPIC. Acorn operate their schemes under the Qwetu brand.
AXA swoops on Copenhagen PRS schemes for 174M euros: Denmark
Investment giant AXA Investment Managers – Real Assets (AXA IMRA) has acquired a 396 unite residential portfolio in Copenhagen, Denmark
Ex-Addison Lee HQ snapped up for student accommodation scheme: London
Taxi company Addison Lee’s former headquarters in Euston has been acquired by MBU Capital, which has plans to develop a mixed-use scheme including student accommodation …
TSH expands Italian job with green lit Florence
Hybrid co-living and c0-working firm The Student Hotel (TSH) has received a key zoning permit for it’s landmark mixed used development in the Italian city of Florence …
Unite UK Student Accommodation Fund £250M Equity Raise and £111M Acquistion
The Unite Group plc, the UK’s leading manager and developer of student accommodation, announces the Unite UK Student Accommodation Fund (‘USAF’) has successfully raised £250 million of new equity from external investors. The proceeds represent 17% of USAF’s NAV as of March 2019.
Unite has agreed to sell three assets to USAF for a total consideration of £111 million (Unite share £83 million), representing a net initial yield of 5.5%. The assets are located in Portsmouth and Leeds and total 1,223 beds. On a pro forma basis Unite Group’s LTV falls to 25%.
Unite is not participating in this equity raise in order to retain funding capacity for its secured development and partnerships pipeline and future investment opportunities. Unite’s stake in USAF will reduce from 25% to 23% when the equity is fully drawn. These sales form part of planned disposals of £100-150 million (Unite share) during 2019 …