Unite Students, the owner, manager and developer of student accommodation, is selling its assets in Aberdeen as part of a disposal of nine properties.

The company is offloading comprising 3,656 beds for £212 million to an affiliate of Lone Star Funds.

The disposal, which delivers a £140m return for Unite, includes assets in Aberdeen, Leeds, Leicester, Nottingham and Sheffield.

The group will fully exit the Aberdeen market where it provided accommodation in Causeway View and Spring Gardens.

It is part of the group’s strategy to increase alignment to high and mid-ranked universities and those properties with the strongest prospects for sustainable long-term rental growth.

The assets being sold are priced at a c.1% discount to December 2024 book value and reflects a net operating Income yield of 6.4% based on 2025/26 income.

Contracts have been exchanged with completion due in August. Proceeds will be recycled into investment activity in our strongest markets, including its recently announced university partnership with Manchester Metropolitan University.

Since 2022, the group has sold 12,000 beds, reinvesting over £700 million into its strongest markets and new investment opportunities.

Joe Lister, Unite Students chief executive, commented: “These disposals increase the alignment of our portfolio to the strongest university cities and continues our disciplined approach to recycling capital.

“Purpose-built student accommodation continues to attract institutional capital as the growing UK 18-year-old population and improving trends in international recruitment underpin demand for high-quality student accommodation”.

Unite tables proposal for smaller rival

The disposals were announced as Unite tabled a cash-and-shares proposal worth about £710 million to buy Empiric Student Property.

Empiric shares rose 5% on the announcement, topping 100p for the first time since 2021.

A deal would consolidate Unite’s position as the biggest student accommodation provider. It already has 68,000 beds; buying Empiric would give it about another 7,700.