Unite raises £447m to fuel growth

Student accommodation company Unite has raised £447m through a share placing. The group said the capital raise would help it ”continue to invest in its market-leading platform and enhance future earnings growth”. Proceeds from the share placing will be used to buy seven income-producing assets from the Unite Student Accommodation Fund in Bristol, Liverpool and Cardiff for £243m; fund its £70m equity commitment to its Newcastle University joint venture; commit to two secured development schemes with a combined GDV of £200m; and to two new development opportunities – a £170m, 444-bed Zone 1 London scheme and a £110m project in a “prime regional market”. Unite said the fresh funds would give it combined firepower of more than £700m, which it expects to have allocated before the end of the year. Chief executive Joe Lister said: “This successful completion of our capital raise reflects the significant investor support for Unite Students and our growth prospects as well as recognition of the continued strong fundamentals of the student accommodation sector. “The proceeds will support a doubling of our committed pipeline by year end to over £1bn and see us acquiring assets with asset management potential from USAF to enhance our future returns. This capital raise enables us to accelerate the delivery of new, high-quality, affordable student accommodation where it is needed most and support the growth ambitions of our university partners.” Lister said Unite was “uniquely positioned” to take advantage of a significant market opportunity to support the growth of the UK higher education sector. The capital raise enables the group to accelerate £700m of investment into its strongest markets, said Lister, allowing it to “continue to play a major role in creating new supply of high-quality, affordable accommodation while simultaneously supporting the growth of our university partners”.