UK's Unite Group to buy Empiric Student Property in $860 million deal

Reuters

11 hours ago

Aug 14 (Reuters) - British student accommodation developer Unite Group (UTG.L), opens new tab has agreed to acquire Empiric Student Property (ESP.L), opens new tab, creating a $14 billion student housing giant as UK university enrolments rise.
The cash-and-stock deal, which values Empiric at 634 million pounds ($860.6 million), adds to a wave of transactions in the UK real estate investment trust sector, and comes amid a broader surge in takeover bids for British firms.
Unite Group mainly provides housing for first-year students at universities across Britain, while Empiric, which operates premium housing under the Hello Student brand, houses returning students.
The deal would result in a combined portfolio worth 10.5 billion pounds, with about 75,000 beds.
Demand for further education has rebounded in the past three years following a COVID-induced pause, while tightening student visa policies in key markets like the U.S. and Australia are redirecting student interest toward alternative destinations.
"More restrictive policy in the UK's main competitor markets, including the U.S. and Australia, is... making the UK a more attractive destination to international students," a Unite spokesperson said in an emailed statement.
According to the Universities and Colleges Admissions Service, UK university acceptances have reached a record high in 2025, with international undergraduate acceptances also rising, led by strong demand from China and the U.S.
Under the terms of the deal, Empiric's shares would be valued at about 94.2 pence each, excluding dividends, based on Unite's closing share price of 732 pence on Wednesday.
Upon completion, Empiric shareholders will own about 10% of the combined group, with existing Unite shareholders holding the remaining 90%.
In 2024 Empiric undertook an extensive process to find a joint venture partner, but the search did not result in an agreement on acceptable terms.
($1 = 0.7367 pounds)