Student housing provider Unite has raised £300 million for two new developments, including one in Stratford, as its CEO warned students may not be able to find properties in the areas they would like as its accommodation fills up.
The group raised funds for a 952-bed property in Stratford, set to open in 2027 which will include a new entrance for Stratford tube station, and a 614-bed property in Bristol. CEO Richard Smith hopes those developments can help ease a shortage of student housing caused by HMO landlords exiting the sector amid new regulations and skyrocketing mortgage rates, which he has repeatedly warned of.
Today, he told the Standard that with Unite’s properties full for the 2023-24 academic year, some students might find themselves living much further away from their universities than they had planned.
“There will be cases where students will not be able to find a property they can live in in the locations they would like,” he said. “There were some reports last year of students having to secure housing in the next town over, and we think there’ll be more of that.
“We’re seeing increased urgency. You look at our reservation performance, we’ve been consistently ahead. That does indicate increased urgency. There’s an awareness that there’s some urgency.”
The fundraise for the two new developments included retail investors in a first for the business. The inclusion of retail investors was facilitated by investment platform PrimaryBid.
James Deal, PrimaryBid’s head of UK, said: "It is fantastic to see Unite Group offering new and existing shareholders the opportunity to participate in its fundraising. Rewarding investors for their long-standing support is obvious and part of pre-emption. With technology, we can facilitate such inclusion for issuers with ease."
Unite shares are down 15p, or 1.6%, to 930p.
