UK student housing developer The Unite Group has sold 13 properties to its own real estate fund for £171.3 million ($262 million; €189 million) in cash.
The Unite UK Student Accommodation Fund, which the London-based company established in 2006 to release capital tied up in its more mature assets, will acquire 13 properties and 2,625 beds across the UK.
The properties, which are 99 percent let for the 2008-2009 year, are located in London, Reading, Manchester, Liverpool, Sheffield, Bristol, Exeter, Plymouth, Leicester, Coventry and Nottingham.
Unite achieved a net initial yield of 6.15 percent through the sale to its sister fund, according to a statement from the company. The cash payment will also release equity capital for Unite of £36 million net of Unite co-investment in the fund and the repayment of associated senior debt. Unite co-investment stake in the fund now stands at approximately 19 percent, according to the statement.