Pair have begun due diligence on proposal

Unite Group has proposed buying smaller developer Empiric in a deal that would be worth 拢719m.

Unite, which posted turnover of nearly 拢400m last year, submitted a proposal to buy Empiric Student Property of which 28% would consist of cash. The possible offer values each Empiric share at 107p.

A Unite spokesperson said: 鈥淭he addition of Empiric鈥檚 high quality, complementary portfolio would create a combined group with enhanced scale and growth aligned to the UK鈥檚 strongest universities.

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Unite owns around 68,000 student beds

鈥淲ith the potential synergies that could be unlocked by Unite鈥檚 operating platform, the possible offer has the potential to deliver accretion to earnings and shareholder returns while maintaining balance sheet strength.鈥�

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Unite owns around 68,000 student beds, with London-based Empiric owning 7,700 beds and posting turnover of 拢84m.

A spokesperson for Empiric said: 鈥淥n the basis of the proposal, the board has agreed with Unite to enter an initial period of due diligence. A further announcement will be made as appropriate.鈥�