UNITE, the UK's leading developer and manager of student accommodation, today announces the completion of its sale of a wholly-owned 56-bed property in Devonshire Street, London W1, to a private client of Knight Frank for £15.25 million (approx. 18.9 million). The sale price is supportive of valuations for London assets.
The transaction, for which contracts were exchanged in June, demonstrates further progress in UNITE's selective disposal program of non-core assets, and provides further confidence in achieving balance sheet asset sales firmly within UNITE's target range of £100 million to £150 million (approx. 185 million) by December 2012.
The sale of smaller properties, such as Devonshire Street, is a core element of the Group's strategy to improve the quality and operational efficiency of its portfolio. It also allows UNITE to control leverage and recycle capital into larger, more efficient developments in London, such as the 951-bed scheme adjacent to the Olympic Park in Stratford.
Richard Simpson, Managing Director of Property for UNITE, said: "This sale marks further good progress in our disposal program of non-core assets, and enables us to continue to concentrate our focus on our ongoing London development pipeline. The price achieved not only reflects the quality and location of this asset but also clearly demonstrates the continued buoyancy and appeal of the student accommodation sector for investors."
Source: FTI Consulting