41061 Unite AR22 HI-RES WEB-READY - Flipbook - Page 40
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THE UNITE GROUP PLC | Annual Report and Financial Statements 2022
FINANCIAL REVIEW continued
PROPERTY REVIEW continued
Secured development and partnerships pipeline
Type1
£m
Target
delivery
Secured
beds/units
No.
Total
completed
value
£m
Total
development
costs
£m
Capex in
period
£m
Capex
remaining
£m
Forecast
NTA
remaining
£m
Forecast
yield on
cost
%
Committed development
Derby Road, Nottingham
DL
2023
705
88
60
28
18
14
8.2%
Lower Parliament Street,
Nottingham
DL
2025
271
44
36
8
28
9
7.3%
DL
2025
431
73
51
8
40
19
7.0%
UPT
2026
716
237
192
78
114
39
6.1%
2,123
442
339
122
200
81
6.7%
Abbey Lane, Edinburgh
Jubilee House, East London3
Total Committed
Uncommitted development
Temple Quarter, Bristol
Freestone Island, Bristol
2
Meridian Square, East London
UPT
2025
595
85
19
63
7.3%
UPT
2026
622
79
1
78
7.0%
UPT
2027
951
194
3
191
6.4%
UPT
2027
572
153
2
147
6.3%
Total Uncommitted
2,740
511
25
479
6.6%
Total pipeline
4,863
850
147
679
6.7%
2
TP Paddington, London2
1. Direct-let (DL), University partnership (UPT).
2. Subject to obtaining planning consent.
3. Yield on cost assumes sale of academic space for c.£65 million.
Asset management
In addition to our development activity, we see significant opportunities to create value through asset management projects
in our estate. These projects typically have shorter lead times than new developments, often carried out over the summer
period, and deliver attractive risk-adjusted returns.
In September, we completed three asset management schemes in Manchester. Investment across the three projects totalled
£46 million in aggregate and delivered a 7% yield on cost. The projects delivered new accommodation, refurbished existing
rooms and enhanced the environmental performance of the properties. The upgraded assets are fully let for the 2022/23
academic year and support our segmentation strategy, with the three buildings targeted at different market segments
according to their designs.
We have a pipeline of further asset management opportunities which support £35–50 million p.a. of future investment
activity (Unite share).