Student digs giants Unite and Empiric to merge
Student accommodation provider Unite Group has agreed to an over £700m deal to acquire competitor Empiric Student Property.
Shareholders were informed this morning that the boards of directors of Unite and Empiric reached an agreement on the terms of a recommended cash and share offer pursuant to which Unite will acquire the entire issued and to be issued ordinary share capital of Empiric.
The transaction is expected to become effective by the second quarter of 2026.
As a result of the deal, Unite’s combined portfolio will expand to £10.5bn, up from £7.4bn, with approximately 75,000 beds on a combined basis.
The group will be able to appeal to a wider range of students, particularly the “returner” and postgraduate segments, which was Empiric’s focus.
This deal is expected to deliver £13.7m of significant cost synergies, increase earnings and dividends, and provide enhanced returns for Unite’s shareholders.
While Empiric shareholders will receive a premium on their shares, ranging from 10 per cent to 24 per cent.
Commenting on the acquisition, Richard Huntingford, Chair of Unite said: “Acquiring Empiric’s high-quality and complementary portfolio accelerates our growth into the attractive returner student segment, enabling us to better serve students throughout their academic journey.”
Mark Pain, Chair of Empiric added: “The Board of Empiric believes the firm and recommended offer from Unite is highly compelling for Empiric’s shareholders as it will deliver material accretion to earnings and dividends per share, deliver synergy benefits and provide superior access to capital to drive growth, whilst enabling shareholders to remain invested in a portfolio of highly attractive UK student accommodation assets.”
In July, Unite posted an uptick in the value of its two property portfolios as its UK-wide portfolio grew by 0.6 per cent to £2.9bn, while its London portfolio grew 0.7 per cent £2bn.