Unite Group up as it announces acquisition

Specialist real estate firm Unite Group (LON:UTG) has seen its share price climb by 3.96% to 1,037p (as of 14:40 BST) after it announced the acquisition of a purpose built 24,000 bed student housing portfolio. The Liberty Living portfolio was independently valued at £2.2 billion at the end of May and the consideration for the deal is £1.4 billion payable in cash and shares.

CEO Richard Smith commented: “This is a transformative acquisition which brings together the best of two companies with a wealth of expertise and experience in delivering for students and university partners. By combining two highly complementary portfolios, the enlarged group will be well positioned to meet the growing need for affordable, high quality student accommodation in university towns and cities where demand is strong.

“This, combined with our best-in-class operating platform, will mean more choice for universities and an enhanced service and welfare offer for students.

“Backed by a conservative capital structure, this acquisition accelerates and extends our earnings growth and provides opportunities to further enhance total shareholder returns“.