Unite Students has entered into an option agreement to acquire a new 800-bed development scheme in central Glasgow, subject to planning.

The new development is to be delivered as a university partnership, with at least half of the beds to be let on a multi-year nominations agreement to a leading university.

Michael Burt, Unite Students Group Investment Director, said: “Our latest development will create new supply of high quality, affordable student accommodation in Glasgow to support the continued growth of our university partners. We are also making good progress in delivering the two new developments funded from the proceeds of our recent capital raise. Our development pipeline now totals 5,600 beds in the strongest university cities, as we work to address the urgent need for new student housing at a time when the private rental sector is in retreat.”

The scheme has a total development cost of £95m and is expected to deliver a yield on cost of around 7.5%. Planning approval is targeted during H1 2024, enabling delivery for the 2026/27 academic year. Unite expects to fund the project from capital recycling through disposals.