Unite Group PLC and Empiric Student Property PLC announced Thursday they have agreed to a takeover of Empiric by Unite, following negotiations that began when Bristol-based Unite first approached London-based Empiric in May. The deal represents a significant consolidation in the UK student accommodation sector, combining two major providers with complementary portfolios.
Under the final agreement, Empiric shareholders will receive 0.085 of a new Unite share plus 32 pence in cash, valuing each Empiric share at roughly 94.2p for £634 million. Including dividends, this rises to a 107.5p per share valuation, representing £723 million in total. Empiric shareholders will own 10% of the combined firm following completion.
The transaction requires approval from at least 75% of Empiric shareholders, with the company’s directors committing to vote in favor and recommending other shareholders do the same. The takeover is expected to become effective in the second quarter of 2026, subject to clearance from the UK Competition & Markets Authority, which may examine operations in six of the 23 cities where the companies operate.
Mark Pain, Empiric Chair, emphasized the strategic value of the company’s assets, noting that Empiric’s portfolio covers “the best locations in the UK’s strongest university cities.” He added: “Unite has identified Empiric’s differentiated proposition through its Hello Student brand, as well as its focus on returner and post graduate students, as clear strategic pillars through which to grow its business.” Unite Chair Richard Huntingford praised Empiric’s “high-quality and complementary portfolio.”
Separately, Empiric released first-half results showing revenue growth of 3.3% year-on-year to £43.8 million for the six months ended June 30, despite a 22% decline in pretax profit to £19.3 million. The company increased its quarterly dividend per share to 0.925p from 0.8725p, backing its full-year dividend target for a minimum of 3.7p per share.
Despite operational challenges, Empiric maintained an optimistic outlook. “Although reservations have been slower for the coming academic year than has been the case in recent cycles, student application data remains strong and the Group’s sales pattern remains comfortably ahead of the wider market,” the company stated. Applications from both domestic and international students continued to grow, with four postgraduate-exclusive openings expected to bolster income.
Looking ahead, Empiric emphasized the long-term benefits of the transaction for stakeholders. “With the portfolio remaining in public hands, for those shareholders who wish to remain invested in the enlarged group, the transaction offers compelling immediate and longer-term financial benefits with enhanced returns,” the company concluded. The deal is expected to drive further growth through the combination of Unite’s scale and Empiric’s specialized focus on returner and postgraduate students.
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