The Unite Group plc, a UK leading developer and manager of student accommodation, has exchanged contracts with Portsmouth City Council, on a subject to planning basis, to acquire a new development site in Portsmouth.
It is envisaged that the Chaucer House site on Isambard Brunel Road will provide a home for around 480 students.
The development is expected to achieve returns in line with Unite’s targets for regional development and is anticipated to be delivered by 2018. Total development costs, including the cost of the land, are expected to be around £30 million.
The acquisition further strengthens Unite’s long standing relationship with the University of Portsmouth, currently ranked 59th according to The Times Higher Education Rankings. In 2016, all 2,200 of Unite’s beds in the city will be operated under nominations agreements demonstrating the strength of the partnership that extends back over 15 years.
Richard Simpson, Managing Director of Property for Unite Students, commented:
“The acquisition demonstrates our ability to continue to secure high quality sites in line with our target returns.”
“Unite has a strong understanding of the market in Portsmouth and a very positive working relationship with the City Council which has been built over a number of years. Students continue to be important contributors to the local economy and this new development will help to meet the high demand for student accommodation in the city.”
Leader of Portsmouth City Council Cllr Donna Jones said:
“Providing high quality managed student accommodation in the city is key to assisting Portsmouth’s housing shortage. The more student accommodation we have in the city, the more private family homes will come into the rental market easing overcrowding in the city. Unite are a long term established student accommodation provider and I welcome the development in the city.”