13th Jul 2020 08:26
(Alliance News) - Unite Group PLC on Monday said it has agreed to buy a 300-bed development site in central Edinburgh that is part of a wider mixed-use redevelopment.
The FTSE 250-listed student accommodation provider didn't provide the price it paid for the side, but said it expects the total cost of the development to be GBP24 million, with a development yield in line with its target for such schemes of 8.5%.
Unite said it plans to have accommodation ready for the 2023-24 academic year, but it may be done sooner depending on planning consent.
The development will add to the company's 2,200 operational beds in the Scottish city.
"This acquisition represents one of three new development and forward funded schemes either contracted or under offer for a total development cost of GBP250 million. The scheme will be funded through the proceeds of our recent placing and delivers enhanced returns relative to pre-Covid-19 levels," Chief Executive Richard Smith said.
Unite's shares were up 0.7% at 945.50 pence each early on Monday morning in London.
By Greg Roxburgh; [email protected]
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