Freeman News / AFX - December 19, 2005
UNITE Group plc has completed the sale of a property unit trust which owns three student accommodation buildings operated by UNITE, to Savills plc, for £64.1m in cash. The amount is equivalent to a 5.22% net initial yield. Under the terms of the deal, UNITE will retain full responsibility for the management of the buildings, as well as a share in the net income after management costs. UNITE will retain approximately 23% of the gross rents after paying rent of £3.4m per year to the fund under three long-term leases.
The properties, all purpose-built in the past three years, are located in Bournemouth, Bath and Portsmouth and provide 1,561 bed spaces, representing about 5% of UNITE's portfolio. UNITE said it will use most of the proceeds to repay borrowings, with the remaining capital of approximately £17m to be reinvested into the group's development activities.
Sphere: Related Content
Thursday, December 22, 2005
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment