Unite Group PLC (LSE:UTG) has agreed to buy Empiric Student Property PLC (LSE:ESP) in a recommended cash-and-share deal valuing the student accommodation provider at up to £723 million, including dividends payable before completion.
Empiric shareholders will receive 32p in cash and 0.085 new Unite shares for each Empiric share, which is the equivalent of 107.5p.
The deal will create a £10.5 billion portfolio with around 75,000 beds, 92% of which are in Russell Group cities.
Unite said Empiric’s focus on returner and postgraduate students through its Hello Student brand complements its own network and opens up growth in a segment it has largely not targeted before.
Around 11% of the combined portfolio value will be in this category, with scope to increase to up to 20%.
Unite expects annual cost synergies of £13.7 million and said the acquisition should be earnings-accretive.
Pro forma net loan-to-value will be 29%, with £570 million of undrawn debt facilities.
Both boards are backing the deal. Empiric’s chair Mark Pain called the offer “highly compelling”, while Unite chair Richard Huntingford said it would “unlock significant synergies” and create a new driver of growth alongside its development pipeline.
The transaction is expected to complete in the second quarter of 2026, subject to shareholder and regulatory approvals.