Student accommodation provider reports third quarter figures as it awaits regulatory approval for £700m acquisition of Empiric
Unite Students has reported rental growth of 4% for the year to 30 September.
The student accommodation specialist, in an unaudited trading update this morning, said the growth, which is half the 8.2% reported the previous year, was “slightly below” its target.
The £400m-turnover business had 95.2% of beds sold as of 30 September, down from 97.5% in the same period last year.
Despite the lower-than-expected rental growth, the company, which is awaiting approval for its £723m acquisition of rival Empiric, is confident of future demand.
Joe Lister, chief executive of Unite, said the group saw a strong university clearing period.
He said: “Looking ahead, the outlook remains robust, underpinned by growing demand from school leavers and stabilising international admissions. Our income is also underpinned by nomination agreements with long-term university partners, which now cover 59% of our beds.”
>>See also: Plans being drawn up for 22-storey student accommodation tower on London Met School of Architecture site
Unite said Empiric shareholders on Monday formally approved the group’s offer to buy its rival.
Watchdog the Competition and Markets Authority (CMA) last month announced it is seeking views on the acquisition. The CMA’s ‘invitation to comment’ ran from 16 to 30 September.
The CMA will now decide whether to open a 40-day ‘phase one’ merger inquiry which could then be followed by a longer ‘phase 2’ query if concerns about the deal remain.
Unite posted turnover of nearly £400m last year, while Empiric’s most recent turnover was £84m.
No comments yet