Lone Star Funds has purchased a portfolio of nine purpose-built student accommodation (PBSA) assets from Unite Students for £212m.
The 3,656-bed portfolio comprises assets in Aberdeen, Leicester, Leeds, Nottingham and Sheffield.
The disposals are priced at a circa 1% discount to December 2024 book value and reflect a net operating income yield of 6.4% based on 2025/26 income. Contracts have been exchanged with completion due in August 2025.
Unite intends to recycle the proceeds of the sale into investment activity in its strongest markets, including its recently announced university partnership with Manchester Metropolitan University. The proceeds will also be used to satisfy the remaining redemption requests in USAF.
Joe Lister, chief executive of Unite Students, said: “These disposals increase the alignment of our portfolio to the strongest university cities and continues our disciplined approach to recycling capital. Purpose-built student accommodation continues to attract institutional capital as the growing UK 18-year-old population and improving trends in international recruitment underpin demand for high quality student accommodation.”
