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Unite Group PLC on Wednesday said entered an option agreement to buy a new 800-bed development scheme in Central Glasgow, focused on tackling the acute shortage of student accommodation. The Bristol-based owner, manager and developer of purpose-built student accommodation said the new development will increase its portfolio in Glasgow to 3,000 beds, with at least half of the beds to be let on a multi-year nominations agreement to a leading university. The scheme has a development cost of £95 million, with Unite eyeing a yield on cost of around 7.5%. The company targets planning approval in the first half of next year, aiming at delivery for the 2026/27 academic year. Meanwhile, Unite announced progress on Morriss House in Nottingham, which reached practical completion last month and is fully let for the 2023/24 academic year. Regarding the Meridian Square development in Stratford, planning is progressing in line with expectations with approval aimed for the fourth quarter of 2023. Unite Students Group Investment Director Michael Burt said: ‘Our development pipeline now totals 5,600 beds in the strongest university cities, as we work to address the urgent need for new student housing at a time when the private rental sector is in retreat.’ Unite shares were 0.1% higher at 925.11 pence each on Wednesday morning in London. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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