Unite details three-year work pipeline

Student housing provider Unite has detailed its three-year work pipeline, which identifies 4,400 rooms in the regions and 2,320 rooms London for delivery over the next three years.

The figures come in its full-year results for 2014, which showed a 44% increase in operating profit from £23.1m in 2013 to £33.3m for the year to December 31 2014.

Unite said it expected to complete student developments at Trenchard Street, Bristol, and Angel Lane, in Stratford, east London, in time for September openings.

It said that in addition to Trenchard Street, the firm had secured a total of seven regional schemes that were expected to deliver approximately 3,900 beds with developments in Portsmouth (pictured), Aberdeen and Coventry set to complete in 2016. Further developments in Newcastle, Edinburgh, Liverpool and a second Aberdeen scheme were due to be delivered in 2017.

Unite said its London Student Accommodation Joint Venture (LSAV) with Singaporean government investment fund GIC Real Estate had not acquired any further development opportunities in the capital during 2014 because of “rapidly escalating” values for alternatives uses for suitable sites – particularly residential development.

However it said that in addition to Angel Lane, student developments in Wembley Park and Islington were due to complete in 2016.

Chief executive Mark Allan said the “strong results” for 2014 demonstrated Unite was delivering against its strategic plans.

“Market conditions remain supportive. Student numbers continue to grow steadily, interest rates are still low, development costs remain attractive and the investment market continues to strengthen,” he said.

“We are alert to the risks of rising interest rates, development cost inflation and the uncertainty of an impending general election but are managing the business in a disciplined way and continue to look forward with confidence.”

Unite added that it was setting up a “small operational presence” in Beijing to provide marketing and support to its “significant” Chinese customer population.