Unite Students has exchanged contracts to acquire a new c.1,000 bed development site in London. The acquisition is subject to achieving a planning consent and is being supported through planning by Kings College London, with a view to securing a long-term nomination agreement.
The site is located in Middlesex Street, London E1 and the new building is planned to be completed for the 2021/22 academic year. This is a prime location in London and will provide much-needed accommodation options for students. Total development costs are estimated to be around €221m (£195m) with a development yield of around 6.25%, which is in line with our target for University Partnership transactions.
London is home to over 300,000 students and has three of the world’s Top 25 Universities. The London student market remains significantly undersupplied with only 81,000 purpose-built beds currently in operation. Unite is the leading operator of purpose-built student accommodation in London with over 9,500 beds and partnerships with the leading universities covering over 5,500 beds.
Richard Smith, CEO of Unite Students, commented: “This is our first major development in London since 2013 and represents an important return to the City with the support of one of the UK’s leading Universities. This reflects our strategy of building long-term partnerships with the UK’s top universities in strategically important locations where there is a shortage of affordable, high-quality student accommodation.”