LONDON (dpa-AFX) - Unite Group PLC (UTG.L), a U.K.-based Real Estate Investment Trust on Thursday said that its unit Unite Students has entered into a joint venture framework agreement with Manchester Metropolitan University for the development of 2,300 new student beds.
The long-term deal is to develop 2,300 beds at the University's Cambridge Halls site in Manchester city centre for delivery in 2029 and 2030.
Total development costs for the project are approx. 390 million pounds in which Unite's share would be approx. 275 million pounds.
Unite would act as developer, asset manager and operator to the JV with a 70 percent ownership share. Unite's equity commitment is expected to be around 125 million pounds for a 70 percent stake, which would be funded from internally generated sources. The remaining funding would be from the debt secured against the JV.
Manchester Metropolitan University will own a 30 percent stake in the JV, reflecting the contribution of the Cambridge Halls site.
Submission of the planning application for the development is expected later in the second quarter, which would support formation of the JV around the end of 2025. The construction is expected to commence in 2026.
To support the University's accommodation requirements during the development phase, the Company has separately entered into a five-year nomination agreement for 2,550 beds in other Unite Students' properties in Manchester.
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