Unite Group, a student-accommodation developer, has announced its intention to raise approximately £300 million ($385.6 million) through a share placing and retail offer. The funds will be used to accelerate the company’s growth.
The specific details regarding the number of shares and price will be determined following the completion of the accelerated bookbuild, which has already been initiated.
In addition to the share placing, Unite Group has also launched a separate offer for retail investors, with the same terms and conditions as the placing.
Unite Group plans to allocate the proceeds towards two new developments, increasing its committed pipeline to over £600 million. Furthermore, the company intends to invest more into its existing estate through asset-management projects.
According to Chief Executive Richard Smith, the outlook for the U.K. higher education sector is promising. The strong demand is bolstered by demographic growth, high application rates, and a rise in international student numbers. Additionally, the private rental sector is experiencing a decline, creating a supply shortage. These factors contribute to a positive outlook for Unite Group, presenting numerous appealing investment opportunities.