Unite Group, the UK's largest student accommodation provider, aims to dispose of approximately 20,000 student beds in a strategic move to refocus its portfolio on top-tier universities. This amounts to about £1.4 billion ($1.8 billion) worth of properties. The company has already completed or placed under offer £130 million ($166 million) in property sales and is actively marketing an additional £500 million ($638 million) in assets.
This accelerated disposal plan targets proceeds of £300 million to £400 million ($383 million to $510 million) in 2026 alone, with a goal to release excess capital for reinvestment into development projects, university partnerships, and share buyback programs. The company has already committed to expanding its ongoing share buyback program by an additional £65 million, bringing the total to £165 million. A recent sale of its St Pancras Way property for £186 million ($237 million) contributed to this effort, boosting its stake in the Unite Students Accommodation Fund (USAF) to 32%.
Despite these strategic maneuvers, Unite faces some challenges, including a slight decrease in occupancy rates for the 2026/27 academic year. Bookings for the 2026/27 academic year are at 74%, down from 76% at the same time last year. The company anticipates an occupancy rate at the lower end of its 93-96% forecast, with rent growth projected at 2-3%. To mitigate this, Unite has started offering discounted rents to some students to boost reservations for the upcoming academic year. The company's investment funds also saw a decline in valuations, with the Unite UK Student Accommodation Fund experiencing a 1.7% like-for-like capital decrease and the London Student Accommodation Joint Venture portfolio dropping 2.6% in the first quarter of 2026.
