Unite, the student accommodation company, has sold £220.3m of assets into its own managed fund.
It has also sold £21.4m of leased assets to Morley for its Lime Property Fund.
The transactions follow the redemption of the Unite Finance One bonds announced in October.
Beds from Aberdeen to Plymouth
The assets sold to the Unite UK Student Accommodation Fund comprise 4,426 bed spaces in Manchester, Liverpool, Sheffield, Bristol, Plymouth and Aberdeen.
Most of the properties are fully let for the 2007-2008 academic year and are expected to produce an average net yield of 5.6% over the next twelve months.
Morley buys beds in Bath
Morley has bought 419 bed spaces across four properties in Bath leased to the University of Bath. The leases expire between 2023 and 2029 and the price achieved on the sale of these leased assets is 7% below the 30 June 2007 valuations and reflects an average net yield of 5.25%.
The transaction will deliver a £0.3m profit and Unite will also expense further costs of £4m, predominantly relating to the amortisation of costs associated with setting up the USAF fund in 2006.
USAF’s loan to value gearing is now 47% which, in line with stated strategy, it will reduce to 20%.
Mark Allan, chief executive of Unite, said: ‘In a challenging market environment, these disposals demonstrate investors’ continued appetite for the resilient characteristics of student accommodation and provide valuable transaction benchmarks for the sector.’