One of the interesting questions about buybacks is, 'where does the money come from?'

It can come from e.g. spare cash, operational income, asset sales, debt. Maybe from other places I can't think of right now.

Regarding asset sales. UTG has a lot of purpose-built student accomodation.

Some here have raised concerns that PBSA assets may not achieve NAV, even though that NAV has been recently appraised by an independent assessor.

OK. Well, let's set that aside for now. What else is in the kitty to be flipped for cash for buybacks without altering the core business?

During times of cheap interest rates, companies often pursue speculative projects in nearby niches, to see how they go.

In the case of Unite Group, they started to enter the 'build to rent' BTR sector a little, the same sector that Land Securities is pivoting into just now.

BTR is often 'modern apartments', purposefully designed to suit local renting demand/needs rather than ownership demand/needs.

I believe Unite have two build-to-rent related properties. 180 Stratford, in London, and part of Burnet Point, in Edinburgh.

Both London & Edinburgh are extremely hot, high demand rental markets. The buildings are good condition, recently upgraded.

There is a lot of institutional money looking for that kind of asset currently.

Rumour has it, Unite are considering selling:

1) 2022 - unitegroup.com - Unite students acquires pilot btr investment

2) 2026 - propertyweek.com - Unite mulls walking away from its stratford btr scheme

"Unite mulls exit from BTR sector through Stratford scheme disposal"

It will be interesting to see if they do sell it, and if so, how much they get.

TRS