No. of Recommendations: 3
As I've mentioned previously a few times, most of Unite Group's PBSA portfolio is actually performing surprisingly well if you ignore media narratives and look at results e.g. see FY2025 results back in February [1]
"The majority of our portfolio performed strongly, with 19 of 22 cities averaging 97% occupancy. Vacancies were concentrated in three regional cities (Leicester, Nottingham and Sheffield)"
Unite don't seem to have issued an announcement yet but BENews & other local news report that Unite has just offloaded about 1200 beds in one of those cities, Sheffield. [2,3]
The acquirer, MCR Property Group, already operates PBSA in Sheffield, and this doubles their footprint there.
Hopefully a good price has been achieved; you can see the logic for both sides.
Unite Group frees up time/money/attention/staff for other things, hopefully redeploys the money into buybacks while the opportunity is still there.
MCR gets better local operational scale / marketing scale and less competition. Win/win.
This transaction solves about 1/6 of the occupancy problems.
Unite still has, I think:
around 1500 beds in Sheffield?
around 1500 beds in Leicester?
around 2500 beds in Nottingham?
TRS
[1]
londonstockexchange.com - Results for the year ended december[2]
benews.co.uk - Mcr acquires sheffield pbsa portfolio from unite[3]
placeyorkshire.co.uk - Mcr acquires sheffield pbsa portfolio