Unite Students has exchanged contracts to acquire a new 800-bed development site in Paddington, central London from Travis Perkins plc ('Travis Perkins') on a subject to planning basis.

Total development costs are estimated to be c.£150 million, to be funded from the proceeds of the recent equity issue. The Company is only committed to limited development costs at this stage and has optionality over a development start date, subject to market conditions.

The scheme is targeted for delivery for the 2023/24 academic year, subject to planning approval, and will deliver a development yield in line with the Company's enhanced targets for University partnerships in central London.

Discussions are already underway with University partners to support the scheme through planning, with a view to agreeing on a long-term nomination agreement.

The development will target a BREEAM Excellent rating and incorporate a range of design features to reduce its embodied and operational carbon, supporting the Company's transition to net-zero development and operations.

The acquisition is Unite's second partnership with Travis Perkins following the successful delivery of St Pancras Way in 2014 and, like St Pancras Way, the development will incorporate a new ground floor retail unit for Travis Perkins.

Richard Smith, Chief Executive of Unite Students, said:

"Our latest land acquisition means we have now secured c.£175 million of new development opportunities since our recent placing. This is a rare opportunity to acquire a zone 1 central London site in an excellent location, which will help to meet the growing accommodation needs of our London-based University partners. We remain confident in the growth outlook for London over the next decade, reflecting the global reputation of its Universities and a positive outlook for growth in UK and international student numbers.

"We have continued to welcome students to our properties over the past month, reflecting the value they place on the learning, socialising and independence that University provides. We know from our recent student survey1 that the majority of students are committed to continuing their studies and returning to their current student accommodation in the New Year and we look forward to welcoming them back in January. For those students that want to stay over the Christmas period, we will be fully operational. We will continue doing all we can to help keep students and our staff safe throughout this challenging period."