23rd May 2014 10:46
LONDON (Alliance News) - The Unite Group PLC said Friday its Oasis Capital joint venture has sold its three assets for GBP174 million and, as part of the transaction, Unite has invested GBP26 million into its London-focused Unite Capital Cities joint venture with GIC Real Estate, increasing its stake to 50% from 30%.
Unite did not name the buyer of the Oasis Capital assets.
The Oasis Capital joint venture was formed in 2009 to develop and manage three London properties. The three developments within the portfolio, Woodland Court, Wedgwood Court and Great Suffolk Street, total 1,129 beds, and Unite holds a 25% stake. It won't have any operational involvement with the venture once the assets have been sold.
Unite said that by having a 50% stake in Unite Capital Cities it will be able to merge it with its London Student Accommodation Vehicle later this year, thereby forming a single investment vehicle.
"The sale of the Oasis Capital joint venture assets and the subsequent merger of the group's two GIC joint ventures will deliver UNITE's plan to simplify its co-investment vehicles by reducing the number from four to two," the company said in a statement.
Unite shares were quoted down 1.6% at 407.20 pence Friday morning.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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