THE UNITE GROUP PLC Annual Report and Accounts 2024 31 programmes once embedded, putting pressure on returns and further slowing new supply. Our appraisals and delivery targets reflect the expected impact of the Act. We have increased our return requirements for new investment to reflect higher funding costs and increased delivery risks in the current environment. We now are seeking development yields on new direct-let schemes at around 8% in regional markets and 6.75-7.0% in London, approximately 25-50 basis points higher than previous targets. We have lower hurdle rates for developments that are supported by universities or where another developer is undertaking the higher-risk activities of planning and construction. Our focus is now on successfully delivering our secured pipeline and seeking opportunities for further university joint ventures, including on-campus projects and stock transfer, building on our successes over the past year. Land prices will have to adjust further for traditional development projects to meet our increased return requirements. Completed schemes During the year, we completed our 271-bed Bromley Place scheme in Nottingham at a cost of £36 million. The programme was accelerated to achieve delivery for the 2024/25 academic year and occupancy is expected to stabilise in 2025/26 with the benefit of a full leasing cycle. The project is tailored to postgraduate students, with smaller cluster sizes, a higher share of studios and an enhanced room specification. Through reusing the pre-existing façade, the project’s embodied carbon of c.670kg/m2 is 45% below the RIBA baseline of 1,200kg/m2, making it our lowest carbon building to date. Committed schemes – off campus We are committed to seven off-campus development schemes and our Newcastle joint venture, totalling 6,570 beds and £1,048 million in total development costs (Unite share). Once complete, the projects will add a combined £71 million to net operating income (Unite share). We are on track to deliver two schemes for the 2025/26 academic year. At Burnet Point in Edinburgh, we will deliver 298 beds in cluster-flats as well as 103 beds in two- and three-bed clusters in a separate block. These smaller flats will be available for postgraduate students, university staff and other young professionals and form part of our BTR pilot. At Avon Point in Bristol, 50% of the 623 bed scheme will be nominated by the University of Bristol on a long-term nominations agreement.The site is adjacent to the University of Bristol’s new Temple Quarter campus and will grow our portfolio in Bristol to 4,700 beds. In Stratford, work is also underway at our Hawthorne House and Meridian Square projects which will be delivered for the 2026/27 and 2028/29 academic years respectively. The developments will be delivered as university partnerships, with over half of the beds let under nomination agreements to our university partners. Early works are underway at our Central Quay project in Glasgow and we expect to commit to the full build contract in the coming weeks, which supports delivery in time for the 2027/28 academic year. During the year, we acquired the 444-bed Kings Place project in London with the benefit of a full planning consent. Demolition is now underway and we expect to deliver the scheme for the 2027/28 academic year. University joint ventures Co-investment in accommodation alongside a university has been an objective for the business for several years. In February 2024, we announced an agreement with Newcastle University to enter into a joint venture to develop c.2,000 beds at the University’s Castle Leazes site. The joint venture deepens our 20-year relationship with Newcastle University through a long-term strategic partnership. The existing halls are being demolished in anticipation of the new development. We are providing 1,600 beds being provided to house first- year students during the redevelopment. We submitted a joint planning application with Newcastle University for the new scheme in the autumn and, following delays in reaching agreement with a third party, now expect to open the first phase of Castle Leazes for the 2028/29 academic year. We are in the advanced stages of agreeing our second university joint venture with Manchester Metropolitan University, which we expect to finalise in the second quarter of 2025. The partnership will redevelop the University’s existing 770-bed Cambridge Halls accommodation adjacent to its campus in Manchester city centre which is now thirty years old, and no longer meets student needs. Subject to finalising the agreement and securing planning approval, around 2,300 beds will be built on the site for delivery in 2029 and 2030. The proposed scheme offers a range of room types and price points for students, including a new more affordable design concept. We are in active discussions with a range of high- quality universities for further partnerships, which we are looking to progress over the next 12-18 months. These include discussions around stock transfer and refurbishment of existing university accommodation as well as new development both on- and off-campus. Future pipeline Our secured pipeline includes an additional 1,106 beds for as yet uncommitted schemes with total development costs of £305 million. We have optionality over these schemes and will make decisions on whether to proceed based on their risk- adjusted returns relative to other investment opportunities. In January, planning was rejected for our TP Paddington development in London despite being recommended for approval by planning officers, again highlighting the challenges of delivering new supply in our strongest markets. We are reviewing our options to secure planning and deliver a scheme in-line with our return requirements.