On 14 August 2025, the boards of Unite Group Plc (LON:UTG) and Empiric Student Property Plc (LON:ESP) has announced that they had reached agreement on the terms of a recommended cash and share offer by Unite to acquire the entire issued and to be issued share capital of Empiric, to be effected by means of a scheme of arrangement under Part 26 of the Companies Act 2006 (the ‘Scheme’). Capitalised terms used in this announcement shall, unless otherwise defined, have the same meanings as set out in the Scheme Document (as defined below).
This announcement contains further details on the Scheme Document, including the update on Unite’s current trading contained therein, and the Acquisition timetable.
Publication of Scheme Document
Today, Unite notes the publication of a circular in relation to the Acquisition (the ‘Scheme Document’) by Empiric setting out, among other things, a letter from the Chair of Empiric, the full terms and conditions of the Scheme, an expected timetable of principal events and details of the action to be taken by Empiric’s shareholders. The Scheme Document will be available on Empiric’s website at www.empiric.co.uk/investors/unite-offer and on Unite’s website at www.unitegroup.com/investors/possible-offer-for-empiric-student-property-plc.
A copy of the Scheme Document will also be submitted to the National Storage Mechanism and available for inspection at: https://data.fca.org.uk/#/nsm/nationalstoragemechanism.
The Court Meeting and the General Meeting will be held on 6 October 2025 at the offices of Gowling WLG (UK) LLP, 4 More London Riverside, London SE1 2AU.
Current trading
The Scheme Document contains the following updates on Unite’s current trading:
2025/26 lettings performance
Across our operational portfolio 94% of rooms have been sold for the 2025/26 academic year as at 7 September 2025. This reflects a strong sales performance in the period since A-level results in mid-August (90% sold as at 12 August 2025) with sales to international and postgraduate students expected to continue through September. Our sales to date support rental growth of 4-5% and we continue to target occupancy of at least 97%.
Undergraduate acceptances for the 2025/26 academic year are 3% higher year-on-year. This reflects record demand from UK 18-year-olds driven by demographic growth and strong participation rates. Acceptances from non-EU international students are also up 5% year-on-year with particularly strong growth from China (+16% year-on-year). Higher tariff universities, to which Unite aligns its portfolio, have continued to capture a growing share of undergraduate demand with acceptances up 8% year-on-year.
Our financial performance in the year to date and the outlook for the 2025/26 academic year supports reiterated guidance for adjusted EPS of 47.5-48.25p in 2025. Growth in our recurring earnings underpins total accounting returns of 8-10% in 2025 (before movements in property yields).
Property activity
In late August, Unite completed the disposal of a portfolio of nine properties for £212 million (Unite share: £140 million) to an affiliate of Lone Star Funds. The properties were treated as held for sale in Unite’s balance sheet as at 30 June 2025. The proceeds from the disposal will be recycled into investment activity in Unite’s strongest markets.
Q3 trading update and quarterly property valuations
Unite Group will publish its next trading update and quarterly property valuations for the Unite UK Student Accommodation Fund (‘USAF’) and the London Student Accommodation Joint Venture (‘LSAV’) as at 30 September 2025 on 8 October 2025.
