Oasis Capital Bank takes 75% stake in venture to build three student housing schemes across London
Student accommodation developer UNITE has announced a joint venture worth £194m with Oasis Capital Bank to develop three schemes in London.
Oasis has bought a 75% stake in the venture. The estimated value of the three properties on completion is expected to be £194m, with the anticipated costs to complete them £69m. Unite will record a loss on disposal of £400,000 as a result of the transaction.
The joint venture has appointed UNITE to undertake the development of:
- Lavington Street, a 230-bed development on the South Bank
- James Leicester Hall, a 573-bed development in an established student area next to Caledonian Road tube station
- 301 Holloway Road, a 316-bed development in Islington.
All three schemes are due for completion by August 2010.
Mark Allan, UNITE's chief executive, said: “The creation of joint ventures is a very effective way for the company to maximise returns for shareholders whilst managing the company's development exposure. London is a particularly attractive market because of its acute demand/supply imbalance; over 250,000 full time students, but only 46,000 purpose-built bed spaces.
“The sale of three properties to the joint venture, at robust valuations, reduces our net debt position by £75m and releases a significant amount of cash to the group. This will provide us with greater flexibility to manage our balance sheet and explore new opportunities as they arise.”