Oasis Capital Bank takes 75% stake in venture to build three student housing schemes across London

Student accommodation developer UNITE has announced a joint venture worth 拢194m with Oasis Capital Bank to develop three schemes in London.

Oasis has bought a 75% stake in the venture. The estimated value of the three properties on completion is expected to be 拢194m, with the anticipated costs to complete them 拢69m. Unite will record a loss on disposal of 拢400,000 as a result of the transaction.

The joint venture has appointed UNITE to undertake the development of:

  • Lavington Street, a 230-bed development on the South Bank
  • James Leicester Hall, a 573-bed development in an established student area next to Caledonian Road tube station
  • 301 Holloway Road, a 316-bed development in Islington.

All three schemes are due for completion by August 2010.

Student housing block
Unite develops student housing across the country

Mark Allan, UNITE's chief executive, said: 鈥淭he creation of joint ventures is a very effective way for the company to maximise returns for shareholders whilst managing the company's development exposure. London is a particularly attractive market because of its acute demand/supply imbalance; over 250,000 full time students, but only 46,000 purpose-built bed spaces.

鈥淭he sale of three properties to the joint venture, at robust valuations, reduces our net debt position by 拢75m and releases a significant amount of cash to the group. This will provide us with greater flexibility to manage our balance sheet and explore new opportunities as they arise.鈥�

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