Unite Group raises $580 million for new investments

LONDON (Reuters) - Student accommodation developer Unite Group said on Wednesday it had raised gross proceeds of around 450 million pounds ($580 million) from a share placing backed by a variety of investors and directors, paving the way for a new acquisition spree.

The company said the placing shares were issued at a price of 900 pence per share, representing a discount of 2.6% to the middle market closing price on July 23.

"This successful completion of our capital raise reflects the significant investor support for Unite Students and our growth prospects as well as recognition of the continued strong fundamentals of the student accommodation sector," Joe Lister, chief executive officer said in a statement.

"The capital raise enables us to accelerate the delivery of new, high quality, affordable student accommodation where it is needed most and support the growth ambitions of our university partners."

Unite said the proceeds will support a doubling of its committed pipeline by year-end to over 1 billion pounds, and enable the acquisition of assets to enhance future returns.

($1 = 0.7758 pounds)

(Reporting By Sinead Cruise, editing by Alun John)