Unite Students, the UK’s leading manager and developer of student accommodation, has exchanged contracts to acquire a development site in Leeds on a subject to planning basis.
The site, located in the city centre near to the University of Leeds and Leeds Beckett University, will provide a home for over 1,000 students. The total development cost is expected to be c.£80 million and will be funded from internally generated sources. The new building is expected to be open for the 2020 academic year and deliver a yield on cost of 8%.
The transaction reflects Unite’s strategy of aligning its property portfolio with high-ranking universities where student numbers are growing whilst underpinning further earnings growth and visibility.
The University of Leeds achieved a gold TEF rating in 2017 and was named ‘University of the Year’ by The Times University Guide. The site would increase Unite’s Leeds portfolio to 4,470 beds, serving a student population of 58,000, and further enhancing Unite’s operating efficiency in the city. In the last five years, Unite’s occupancy in the city has been 99% with over 1,200 beds subject to nominations agreements with Leeds universities.