Unite Group PLC (LSE:UTG) has sold six student accommodation blocks for a net £76 million as it refocuses its portfolio around what it says are the UK’s strongest universities.
Student accommodation is a booming market currently, with rents soaring and a shortage of properties throughout the country.
Unite, which houses 70,000 students across 23 UK cities, said the sites being sold are in Birmingham, Cardiff, Leicester, Nottingham, Liverpool and Sheffield and comprise 2,948 beds.
One of the sites (Liverpool) is wholly owned with the others owned in partnership with the Unite UK Student Accommodation Fund (USAF).
The total sale price is £186 million with the average age of the properties 18 years.
Unite said 31% were being let on short-term deals, compared to its 53% average.
Joe Lister, Unite Students chief executive, commented: “These disposals continue our disciplined approach of recycling capital for reinvestment and further increases our alignment to the strongest universities.
“The growth outlook for purpose-built student accommodation remains compelling and we are tracking a number of new investment opportunities at attractive returns.”
Shares in Unite eased 0.6% to 957p.