(Sharecast News) – Student accommodation manager and developer Unite is buying up a new 800-bed development scheme in central Glasgow, increasing its portfolio in the city to 3,000 beds.
The scheme which is still subject to planning approval some time in the first half of 2024, will cost £95m to develop and is expected to deliver a yield on cost of around 7.5%. It will be funded from capital recycling through disposals, the copmany said.
“The new development will help address the acute shortage of student accommodation in Glasgow, which is home to three institutions within the UK’s top 75 universities,” the company said in a statement.
“The group expects to deliver the scheme as a university partnership with at least half of the beds to be let on a multi-year nominations agreement to a leading university.”
Unite is targeting completion ready for the 2026//27 academic year.
Commenting on the acquisition, Unite’s 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.”