Unite Group has completed the disposal of the St Pancras Way purpose-built student accommodation (PBSA) scheme in London to USAF for £186m.
The disposal price represents a 1% discount to the asset’s December 2025 book value with Unite receiving approximately £115m in cash consideration and the balance in new USAF units net of retentions for committed capex.
The new USAF units will increase Unite’s ownership of USAF to 32% and the disposal means the group remains invested in a high quality London asset, while enhancing management fee income and releasing capital.
The 571-bed scheme was developed by Unite in 2014 and is fully nominated to University College London for the 2026/27 academic year.
Speaking about the deal earlier this year, Joe Lister, chief executive of Unite Students, said: “The disposal of St Pancras Way is part of the group’s strategy to accelerate disposals to £300m to £400m per annum. The sale to USAF means we remain invested in a high quality London asset, while enhancing management fee income and releasing capital for reinvestment into higher-returning opportunities in accordance with our capital allocation priorities.”
Unite’s board has also approved the return of up to an additional £65m of surplus capital to shareholders through an extension of the share buyback programme of the company’s ordinary shares of 25p each, which was announced in January.
In aggregate, the buyback programme now stands at £165m. To date, Unite has acquired 19.3 million shares at an average cost of 504p and in total repurchased £98m out of the initial £100m buyback programme.
