7th Apr 2014 11:22
LONDON (Alliance News) - Student accommodation developer Unite Group PLC Monday said its Oasis Capital joint venture has exchanged contracts to sell its three assets for GBP174 million, and it will use its GBP18 million share of the net proceeds to raises its stake in another joint venture to 50%.
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.
It will raise its stake in its London-focused Unite Capital Cities joint venture with GIC to 50%. The equalisation of the shareholding in the venture is a pre-condition to the merger of Unite Capital Cities and with London Student Accommodation Vehicle, a development joint venture with GIC, to form 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.
By Steve McGrath; [email protected]; @stevemcgrath1
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