Student accommodation developer Unite Group PLC (LON:UTG) has agreed the sale of two properties in Coventry to a Singapore-based investor as it looks to dispose of around £150-200mln of assets per year over the next three years.
Mapletree Investments will acquire Unite’s two wholly-owned blocks, comprising a total of 1,127 beds, for £96mln, a price tag said to be in line with book value.
The two buildings, Callice Court and Millennium Court, offer rooms of up to £710 per month, while private housing can be as little as £320 per month without bills according to Coventry University’s website.
The FTSE 250-listed developer, which still owns two properties in the Warwickshire city, said the transaction was in line with its strategy to re-invest capital into its development pipeline.
“This transaction takes Unite's share of disposals in the year to date to £250mln and supports our ongoing strategy of recycling assets to enhance our portfolio quality and maintain financial discipline,” said chief executive Richard Smith.
Shares were down 0.65% to 1,076p in the early morning.