Student housing provider Unite Group has struck a deal worth more than £700m to snap up rival Empiric Student Property.
Shareholders were notified on Thursday (August 14) that the boards of Bristol-headquartered Unite and London-based Empiric had reached agreement on the terms of a recommended cash and share offer.
Under the agreement, Unite will purchase Empiric’s entire issued and anticipated ordinary share capital. The deal is anticipated to complete by the second quarter of 2026.
Following the acquisition, Unite’s enlarged portfolio will reach £10.5bn, climbing from £7.4bn, encompassing roughly 75,000 beds collectively.
The business will be positioned to attract a broader spectrum of students, particularly within the “returner” and postgraduate markets, which formed Empiric’s core focus, as reported by City AM.
The transaction is projected to generate £13.7m in substantial cost synergies, boost earnings and dividends, whilst delivering improved returns for Unite’s investors.
Meanwhile, Empiric shareholders will benefit from a premium on their holdings, spanning 10% to 24%.
Richard Huntingford, chair of Unite said: “Acquiring Empiric’s high-quality and complementary portfolio accelerates our growth into the attractive returner student segment, enabling us to better serve students throughout their academic journey.”
Mark Pain, chair of Empiric added: “The board of Empiric believes the firm and recommended offer from Unite is highly compelling for Empiric’s shareholders as it will deliver material accretion to earnings and dividends per share, deliver synergy benefits and provide superior access to capital to drive growth, whilst enabling shareholders to remain invested in a portfolio of highly attractive UK student accommodation assets.”
In July, Unite reported growing demand for its accommodation across the UK as university applications continue to pick up
It said there was a rise in the valuation of its dual property portfolios, with its nationwide UK holdings climbing 0.6% to £2.9bn, whilst its London assets increased 0.7% to £2bn.
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