10th Oct 2014 06:39
LONDON (Alliance News) - Unite Group PLC Friday said it has acquired two developments sites in Aberdeen and Liverpool, which together once opened will add around 12 pence to its net asset valuer per share, and around 2.5 pence per share to its annual EPRA earnings per share.
EPRA is the European Public Real Estate Association, the industry body for European REITs.
The student accommodation provider said the two new development projects will add a total of around 1,250 new beds and are scheduled to be open in time for the 2017/18 academic year.
Unite said the two projects are expected to achieve returns in line with its targets for regional development of 9.5% to 10% yield on cost, and have a combined total development cost of around GBP80 million. It said those costs represent around 60% of the group's planned development activity for 2017 delivery.
"The sites are in excellent, central locations and will complement Unite's existing properties in each city very well. Aberdeen and Liverpool are both cities with large and growing student populations which underpin market fundamentals," the company said in a statement.
Richard Simpson, managing director of property for Unite Students, said the two new projects will enhance Unite's presence in two of the company's best performing markets and provide much needed accommodation capacity for the growing student populations.
"The acquisition of these sites means that we have now secured approximately 60% of our target 2017 pipeline, providing greater visibility of our future earnings growth," he said.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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