Unite moves into BTR with £71m Stratford deal

Unite has moved into the build-to-rent market, buying a 178-flat block in Stratford, E15. The student accommodation specialist paid £71m for 180 Stratford. The deal is being seen as a test case for Unite’s plans to move into the BTR market, offering accommodation to young people after they leave university. Chief executive Richard Smith said: “We believe there is an exciting opportunity to grow our platform in the wider living sector by catering to the growing number of young professional renters living in major UK cities. We already serve this market through the 9,000 postgraduate students who live with us each year. This pilot BTR investment offers the opportunity to test our operational capability in the sector and understand the potential synergies with our student business.” Unite already has a significant presence in the Stratford market, with 1,700 student beds and has two further developments in the pipeline. 180 Stratford opened in 2013 and offers 319 beds across a mix of one-, two- and three-bed units, as well as 11,000 sq ft of office space. The residential units are currently 99% occupied at affordable average rents of £28 per sq ft. The property is expected to produce a yield on cost of 4.3% following a planned refurbishment starting in 2023. The acquisition and refurbishment will be funded from the proceeds of recent disposals and does not impact Unite’s 2022 earnings guidance.   To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews