Unite upbeat on Empiric acquisition as UK student demand offsets China dip

(Sharecast News) - Student accommodation provider Unite Group said on Monday that acquisition target Empiric Student Property had achieved occupancy of 89% and like-for-like rental growth of 4.5% year-to-date, with the group experiencing an increase in demand from UK domestic students, partially offsetting a reduction in the number of bookings from Chinese students. Unite said its appraisal of the acquisition had assumed lower occupancy and rental growth than the prior academic year, which was reflected in its offer terms, but noted that Empiric's occupancy for the 2025/26 academic year was "slightly below these expectations", whilst rental growth was in line with expectations.

The FTSE 100-listed firm stated its strategic rationale for the acquisition was underpinned by Empiric's proven platform for expansion among returning students, and said it was "actively preparing for integration" following completion of the acquisition as it continues to see "a meaningful opportunity" to improve occupancy across the Empiric portfolio over the next three years through its operational platform, strong university relationships and enhanced customer retention.

"We reaffirm our confidence in delivering earnings and dividend accretion from the acquisition, supported by anticipated annual run-rate synergies of at least £13.7m. Our confidence in achieving our target cost savings is underpinned by our prior experience through the acquisition of Liberty Living in 2019, when we successfully delivered £18m of annual synergies," said Unite.

The Competition and Markets Authority has commenced its Phase 1 investigation into the proposed acquisition, with Unite expecting the Scheme to become effective by the second quarter of 2026, subject to the satisfaction of the remaining terms and conditions.

Reporting by Iain Gilbert at Sharecast.com