The student housing provider targets 55,000-60,000 beds and £300M-£400M in disposals this year amid strong demand.
Unite Group reported first-half results in line with expectations as it accelerates a strategy to focus on high-demand university markets. The company plans to reduce its portfolio to 55,000-60,000 beds across 20 cities, down from 72,000 beds in 29 markets, by selling £300 million to £400 million of assets this year.
Applications to high-tariff universities rose 7%, the fastest growth in over a decade, with those institutions receiving twice as many applicants per place. Unite expects occupancy of 95%-97% and rental growth above inflation, supported by demand outpacing supply. It has already sold £130 million of assets in H1 and has £500 million being marketed, with £100 million under offer.
The broader portfolio transition is expected to complete within 12-24 months, with surplus capital earmarked for development, partnerships, and share buybacks.