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Unite Group fund raises £250m; makes £111m acquisition
StockMarketWire.com
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Student accommodation developer Unite Group said its Unite UK Student Accommodation Fund had raised £250m of new equity from external investors.
Unite said it had also agreed to sell three assets to the fund for £111m, representing a net initial yield of 5.5%.
The assets were located in Portsmouth and Leeds and totaled 1,223 beds.
Proceeds from the raising represented 17% of the fund's net asset value as of March.
Unite is not participating in this equity raise in order to retain funding capacity for its secured development and partnerships pipeline and future investment opportunities.
Its stake in the fund would reduce from 25% to 23% when the equity was fully drawn.
The sales formed part of planned disposals of £100m-to-150m during 2019.
Demand for high quality investment opportunities in the purpose built student accommodation sector remains strong with the full allocation of new equity being taken up by investors,' chief financial officer Joe Lister said.
'The confidence shown in both the fund's ability to deliver consistent returns and Unite's ability to drive value from its operating platform has allowed USAF to raise £250m.'
'The equity raised will allow USAF to continue to improve the quality of the portfolio by continuing to invest in the strongest markets.'
Story provided by StockMarketWire.com
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