Unite Students acquires new site in Sheffield – 24 October 2016
Unite Students, the UK’s leading developer and manager of student accommodation, has exchanged contracts to acquire a development site in Sheffield, on a subject to planning basis. The site, in Sheffield city centre, is very close to the University of Sheffield and will provide a home for around 570 students.
Total development costs, including the cost of the land, are expected to be £35 million, which will be funded internally and is anticipated to be delivered for the 2019/2020 academic year. The project is expected to achieve a return on cost of 8.0 – 8.5%, in line with Unite’s target for regional development. The acquisition increases the development pipeline to over 5,500 beds and contributes to Unite’s ongoing earnings growth outlook.
Sheffield is a thriving University city with a large and growing student population of 48,000 and is home to two strong Universities. The new development will increase the number of Unite beds in Sheffield to around 4,300, across nine properties, providing an opportunity to deliver further operational efficiencies and to strengthen our relationships with local Universities.
Richard Simpson, Group Property Director for Unite Students, commented:
“This acquisition extends our high-quality, development programme in a strong regional location where there is growing demand for purpose built student accommodation.
“Sheffield is a key city for Unite and we will be able to drive efficiencies from our scale and enhance services to our customers and university partners.
“We continue to see good opportunities to secure land alongside leading regional Universities to supplement our development pipeline for delivery in 2019 and 2020.”