Student accomodation developer launches bid to raise 拢50m on the stock exchange to help fund 拢125m spending on development opportunities
Student accomodation developer Unite has launched a bid to raise 拢50m on the stock exchange to help fund a proposed 拢125m spending spree on development opportunities outside of London.
The firm said it had identified a number of 鈥渃ompelling鈥� development sites within 鈥渉ighly targeted鈥� cities that could yield approximately 2,500 bed spaces.
Unite proposes to fund the acquisition of the development sites and build out through a 拢50m stock market placing and a further 拢75m of debt
It sid the sites would yield approximate profit margins of 9.5-10% on cost, which compares to current typical yields of 6.5-7% in regional cities.
The firm said it intends to issue 16,000 shares at 25p each to invited organisations, representing about 10% of the value of the company.
To demonstrate the opportunity Unite said its two most recent regional developments, both on site currently at Kingsmill Lane, Huddersfield (378 beds) and Trenchard Street, Bristol (442 beds) were now expected to deliver yield on cost in excess of 10%.
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