Unite Students has sold its portfolio of 11 properties, including 4,488 beds, to an affiliate of Lone Star Funds for £306mln.
The deal includes assets in Sheffield (1,700 beds), Reading (703 beds), Leicester (665 beds), Bedford (517 beds), Liverpool (390 beds), Birmingham (337 beds), Bristol (99 beds) and Leeds (77 beds). The deal also has nomination agreements covering 46% of beds on short-term contracts.
The disposal is part of a portfolio management strategy for the UK-owner, manager and developer of student housing, which results in "an increased alignment with high and mid-ranked universities."
In addition, certain smaller, less efficient properties in cities suUnite Group PLC (LSE:UTG)ch as Bristol and Leeds will be offloaded.
Four properties will be completed by March 15, with the rest scheduled for completion by August 31, 2022.
Richard Smith, chief executive of Unite Students, said: "We have now completed the disposal programme set out at the time of our acquisition of Liberty Living in 2019. These disposals have increased the focus of our portfolio in the strongest university cities and ensure our ability to sustain rental growth over a longer time horizon."
Smith said the company's balance sheet is also positioned for growth, as the company has the investment capacity to secure the biggest ever development pipeline of £1bn and pursue new opportunities to extend its best-in-class platform.