1st May 2025 12:03
(Alliance News) - Unite Group PLC on Thursday said it has entered into a joint venture with Manchester Metropolitan University.
Unite Group is a Bristol, England-based student accommodation provider.
The joint venture is for the development of 2,300 beds at the university's Cambridge Halls to be delivered in 2029 and 2030. Construction is expected to commence next year.
Total development costs for the project are around GBP390 million, with Unite's share at roughly GBP275 million.
Unite will have a 70% stake in the joint venture, acting as developer, asset manager and operator. Its equity commitment is expected to be around GBP125 million, funded from internally generated sources, with the remaining funding coming from "debt secured against the joint venture".
Manchester Metropolitan University will own the remaining 30% stake.
"Manchester is the UK's second-largest university city, with over 100,000 full-time students studying at four universities. There is a shortage of purpose-built student accommodation in Manchester with 3.6 full-time students per bed, driving demand for new accommodation," Unite said, noting the national average for full-time students per bed is 3.2.
Furthermore, the development will increase Unite's operational platform in Manchester to almost 8,000 beds.
Cambridge Halls currently provides 770 beds, which "no longer meets the needs of students." The university has committed to close the existing accommodation and replace them with towers and blocks, commencing on-site work later this year.
Unite also entered into a five-year nomination agreement for 2,550 beds in other Unite properties in Manchester.
The company said that the planning application for the development is expected in the second quarter.
Chef Executive Officer Joe Lister said: "Our joint-venture partnership will provide further support to Manchester Metropolitan University in meeting their accommodation needs at a time of real housing shortage, so they can focus on providing a world-class experience for their students.
"Unite Students is uniquely positioned to help address the shortage of student homes. Our second university partnership underlines the growing attractiveness of our offer to university partners as they seek to unlock the potential of their campuses to deliver new accommodation and access funding. This has the added benefit of freeing up privately rented houses in the community for families."
In February 2024, Unite announced a joint venture with Newcastle University for the development of 2,000 beds, expected to be delivered in 2027 and 2028.
Unite shares rose 1.3% to 871.50 pence in London on Thursday afternoon.
By Olivia Mason-Myhill, Alliance News reporter
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