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Unite Group is planning to accelerate the sale of lower-yielding student housing assets as it sharpens focus on higher-return properties near top UK universities. The company has completed or initiated disposals worth GBP 130 million (USD 174.42 million) and is preparing an additional GBP 500 million pipeline for sale over the next 6 to 12 months. Despite softer international student demand due to visa changes and rising education costs, Unite expects occupancy and rental growth to remain within its projected range, supported by strong pre-bookings.
Unite Group said in the past week that it is evaluating options to accelerate the sale of certain assets while continuing to maintain its outlook on occupancy levels and rental growth. The move is part of a broader effort to improve portfolio returns by focusing on higher-performing properties. Advertisement
The company is actively selling lower-yielding assets and redirecting its investments towards accommodation linked to UK universities with stricter entry requirements. This shift comes at a time when demand from international postgraduate students has softened due to rising education costs and tighter visa regulations. These factors have impacted enrolments, particularly from overseas students, which has historically been an important demand segment for purpose-built student housing.
Unite confirmed that disposals worth GBP 130 million (USD 174.42 million) have either been completed or are currently in progress. In addition, assets valued at around GBP 500 million are being marketed or prepared for sale, with transactions expected to take place over the next six to 12 months. To support this plan, the company has appointed Goldman Sachs to advise on speeding up the disposal programme and improving execution.
On the operational front, demand visibility remains stable. Around 74% of Unite's beds have already been reserved for the 2026-27 academic year, indicating steady booking trends despite external challenges. The company continues to expect occupancy to remain at the lower end of its earlier guided 93% to 96% range. Rental growth is also expected to be modest, likely at the lower end of the projected 2% to 3% range, reflecting a cautious demand environment.
The company also addressed global uncertainties, stating that the ongoing Middle East conflict is not expected to materially affect its financial performance in 2026. It added that utility costs are fully hedged through 2026 and around 70% hedged for 2027, which provides cost visibility and limits exposure to volatility in energy prices.
Unite has been gradually refining its portfolio over the past few years by focusing on prime university cities and strengthening ties with institutions that attract consistent student demand. This approach has helped it maintain stable occupancy even during periods of policy changes and shifting international mobility trends. The current asset sale plan builds on this strategy by freeing up capital from underperforming assets and redeploying it into stronger locations.
Source Reuters
5th Jun, 2025
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