Herbert Smith Freehills advises Unite Group on £300 million capital raise

Leading international law firm Herbert Smith Freehills has advised The Unite Group plc, the UK's largest owner, operator and developer of purpose-built student accommodation (PBSA), in relation to a £300 million capital raise. 

The capital raise was structured as a placing to institutional investors and a concurrent separate offer to retail investors in the UK through the PrimaryBid platform. J.P. Morgan and Numis acted as joint bookrunners on the placing. The capital raise represented 8.2% of Unite's existing issued ordinary share capital.

The placing will enable Unite to continue to invest in its market-leading platform and enhance future earnings growth. Unite intends to use the net proceeds of the placing to commit to two new PBSA development schemes in Bristol and London and accelerate asset management initiatives to enhance future returns.

The team was led by Corporate of counsel Thomas Vaughan with Corporate partners Mike Flockhart and Alex Kay and included associate Henry Sharp and trainee solicitor James Ballheimer. Partner Dinesh Banani and associate Zarko Perovic provided US securities law advice.

Herbert Smith Freehills has previously advised Unite on its £300 million placing in 2020, its £1.4 billion acquisition of Liberty Living Group in 2019, which was funded in part by a £260 million placing, and its £170 million placing in 2018.