CCPIB sells Liberty Living for £1.4 billion to Unite Group

Canada Pension Plan Investment Board (CPPIB) has sold its student housing website, Liberty Living, to Unite Group for £1.4 billion (€1.6 billion)

Unite Group, which trades under the name Unite Students, confirmed “advanced stage” talks to buy Liberty Living in a cash and shares transaction.

In a recent statement, CPPIB said it will receive C$1.3 billion (€880 million) net proceeds from the disposal of the student accommodation business and will retain a 20% stake in the combined group. 

Unite said it intends to raise £240 million by way of a share placing to part fund the acquisition.

Thomas Jackson, managing director, real estate investments at CPPIB, said: “Through this transaction, we are able to continue our investment in the student housing sector within the UK across a broader, more diverse and stable portfolio and with additional development exposure, which fits well within our global real estate strategy.”

CPPIB, which manages the C$368.3 billion funds of the Canada Pension Plan, bought the student housing platform in 2015 for £1.1 billion.

CPPIB said two European assets within Liberty Living (Valencia, Spain and Bremen, Germany) sit outside of the transaction perimeter and are in the process of being marketed for sale by Liberty Living.

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