Unite Group has acquired Liberty Living, a student housing platform owned by Canada Pension Plan Investment Board (CPPIB) for 拢1.4bn (鈧�1.6bn), the companies have announced.
Last week, Unite, which trades under the name Unite Students, confirmed 鈥渁dvanced stage鈥� talks to buy Liberty Living in a cash and shares transaction.
In a statement today, CPPIB said it will receive C$1.3bn (鈧�880m) net proceeds from the disposal of the student accommodation business and will retain a 20% stake in the combined group.
Unite said it intends to raise 拢240m by way of a share placing to part fund the acquisition.
Thomas Jackson, managing director, real estate investments at CPPIB, said: 鈥淭hrough this transaction, we are able to continue our investment in the student housing sector within the UK across a broader, more diverse and stable portfolio and with additional development exposure, which fits well within our global real estate strategy.鈥�
CPPIB, which manages the C$368.3bn funds of the Canada Pension Plan, bought the student housing platform in 2015 for 拢1.1bn.
CPPIB said two European assets within Liberty Living (Valencia, Spain and Bremen, Germany) sit outside of the transaction perimeter and are in the process of being marketed for sale by Liberty Living.
Richard Smith, CEO of Unite, said: 鈥淏y combining two highly complementary portfolios, the enlarged group will be well positioned to meet the growing need for affordable, high-quality student accommodation in university towns and cities where demand is strong.鈥�
On completion, the combined group will manage a total of over 73,000 beds across 173 properties in 27 UK towns and cities.
