Student housing developer UNITE Group has exchanged contracts on a 120,000 sq ft development site in Aberdeen for £20m.
The site is expected to deliver a development yield of 9.5% – a 10% yield on cost.
The wholly owned scheme is the second project to be funded with the proceeds of UNITE’s share placing in June last year, which raised £51.2m.
The site will house 400 students and is slated for completion for the start of the 2016-17 academic year. UNITE is in exclusive negotiations to buy two more regional development sites.
Richard Simpson, managing director of property for UNITE, said: “This acquisition marks further progress with UNITE’s selective regional development programme and is a prime example of how we are investing the proceeds from our 2013 share placing. This site is in an excellent central location, in a market with favourable supply/demand dynamics and in a city we expect to experience continued growth. By renovating and bringing back into use a listed building, we are pleased to contribute to the regeneration of this city centre location.”
sophia.furber@estatesgazette.com
