The Unite Group (LSE:UTG) completed the disposal of St Pancras Way to USAF for £186 million, with Unite's share of the consideration £126 million.
Unite, the UK's largest owner, manager and developer of purpose-built student accommodation, will receive approximately £115 million in cash and the balance in new USAF units net of retentions for committed capex, with the disposal price at a 1% discount to December 2025 book value and increasing Unite's holding in USAF to 32% from 30%.
"This reflects confidence in Unite's long‑term prospects and high‑quality balance sheet and represents a highly attractive investment opportunity for the Company," the company said.
The board has approved an additional return of up to £65 million to shareholders through an extension of the share buyback programme, taking the aggregate programme to £165 million.
To date, Unite has acquired 19.3 million shares at an average cost of 504p, having repurchased £98 million of the initial £100 million tranche.
Unite said the disposal proceeds will fund this tranche of buybacks with the balance allocated to capex for existing on‑site developments and university partnerships, and that its accelerated disposal programme remains on track to deliver £300-400 million (Unite share) of proceeds in 2026.
The buyback extension will commence after completion of the initial £100 million tranche and will run until the earlier of completion or 31 October, subject to shareholder authority to be sought at the upcoming AGM.
