19th May 2016 07:08
LONDON (Alliance News) - Unite Group PLC on Thursday said it has exchanged contracts to buy a new development site in central Birmingham which is to house 600 students once developed.
The developer and manager of student accommodation said it has exchanged the contracts on a subject to planning basis.
Total development costs of the site, including the cost of the land, are expected to come in around GBP40.0 million, and the project is expected to achieve returns in line with Unite's target for regional development.
Unite added that the project, which is expected to be delivered by 2019, will be funded from "internally generated sources".
The site is in Birmingham city centre, located "very close" to Ashton University and a "short walk" away from Birmingham City University, Unite said.
The development is adjacent to an operational Unite building and will increase the number of Unite beds in Birmingham to around 3,300 across five properties, Unite added.
"This central Birmingham site fulfils our criteria for growth and investment returns in a strong, regional location and we are delighted to have exchanged contracts to acquire it," said Property Managing Director Richard Simpson.
Shares in Unite were down 0.3% at 652.50 pence on Thursday morning.
By Hannah Boland; [email protected]; @Hannaheboland
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