Rival student housing corporation Empiric gets purchased by Unite in a £723 million contract
Unite Group and Empiric Student Property to Merge in £723 Million Deal
In a significant move for the UK's Purpose-Built Student Accommodation (PBSA) sector, Unite Group has agreed to acquire Empiric Student Property for approximately £723 million. This deal marks a consolidation among public UK landlords, following a period of weak trading.
The merger signifies a continued focus on the growth and consolidation of the UK student accommodation sector. The combined company will have the potential to cater to a significant portion of the PBSA sector, which is approximately 750,000 beds. This represents a significant opportunity to tap into a wider student market, as the overall student population in the UK is approximately 2 million.
The UK PBSA market is currently experiencing strong investment and growth, with investment reaching £830 million in Q2 2025 and totaling around £1.6 billion in the first half of the year. This robust investor confidence is driven by increasing domestic and international student numbers, a shortage of high-quality beds, and the sector’s relative resilience compared to other real estate asset classes.
The merger between Unite and Empiric will allow the combined company to cater to a larger proportion of the student population compared to their current individual capacities. Empiric shareholders will receive 32p in cash and 0.085 new Unite shares for each Empiric share. The takeover values Empiric at about 107.5p a share, based on Unite's closing share price of 855.5p on June 4.
In early London trading, Unite's shares remained flat, while Empiric's shares decreased by 1%. The trading of Unite's shares remained unaffected by the merger announcement, while Empiric's shares experienced a slight decrease. The deal is subject to shareholder and regulatory approvals.
The merged company will be operating in a market that still offers ample room for growth and consolidation. The acquisition is a sign of market growth in the UK student accommodation sector, with investment in the sector totaling £3.5 billion last year, an increase of 13% from 2023.
The merger is also attractive due to the growing interest from investors like Blackstone, GIC, and Greystar, who have been drawn to the student housing market due to demographic trends showing a continuous stream of students and a shortage of beds.
The UK student accommodation market is still fragmented, with the merged Unite and Empiric providing accommodation to approximately 75,000 of the 2 million full-time student population. This suggests that there is still significant potential for further growth and consolidation in the sector.
Sources:
- Savills PLC, "UK Student Accommodation Briefing - Spring 2025"
- Knight Frank, "Student Accommodation Snapshot - Q2 2025"
- JLL, "UK Student Housing Market Update - Q2 2025"
- Colliers International, "UK Student Accommodation Market Update - Q2 2025"
- CBRE, "UK Student Accommodation Market Overview - Q2 2025"
Investing in the combined Unite Group and Empiric Student Property, following their merger, presents a lucrative opportunity for those interested in the business sector, particularly finance, as the amalgamated company will cater to a significant portion of the Purpose-Built Student Accommodation (PBSA) sector, amounting to approximately 750,000 beds, and represents a substantial portion of the overall student population in the UK, which is approximately 2 million.
Given the strong investment and growth in the UK PBSA market, with Q2 2025 investment reaching £830 million, the sector's resilience compared to other real estate asset classes, and the growing interest from global investors like Blackstone, GIC, and Greystar, the merged company stands to benefit substantially from further investments and potential consolidation within the sector.
