Unite Group, the UK's largest owner and developer of student accommodation, has exchanged contracts to sell an academy school at its Hawthorne House development in London for £40.7 million.
The sale is priced at a 4.9% yield, representing a 2% discount to its June 2026 book value, and is expected to complete shortly.
Proceeds will initially be used to reduce leverage.
Unite retains the 719-bed student accommodation element of Hawthorne House, which is fully let for the 2026/27 academic year.
More than half the beds are subject to a long-term nomination agreement with the University of the Arts London.
The disposal forms part of Unite's broader strategy to recycle capital and release value from non-purpose-built student accommodation (PBSA) assets.
Chief executive Joe Lister said the group remained on track to deliver £300 million to £400 million of disposals this year.
The academy school had been included in the £225 million of assets under offer flagged in the group's third-quarter trading update.
Unite Group is a Real Estate Investment Trust (REIT) listed on the London Stock Exchange, providing homes to 72,000 students across 207 properties in 29 university towns and cities.
