Student rooms builder delays major projects

Aaron Morby 3 years ago
Share

Student accommodation specialist Unite has halted its project plans as it prepares for a £125m revenue hit on student rents during the coronavirus crisis.

RG Group was delivering the £195m Middlesex Street scheme on the city fringe in London that will be delayed by at least a year
RG Group was delivering the £195m Middlesex Street scheme on the city fringe in London that will be delayed by at least a year

Unite, which is forgoing rent on around 43,000-46,000 beds representing around 62-65% of all owned and managed beds, is pushing back its development pipeline by at least year.

The deferred delivery of 2021 completions and savings to 2020 completions will lead to a cash saving of £67m during 2020.

This will see a 900-bed scheme near Aldgate in London and a 416-bed scheme in Bristol being delivered by contractor RG Group halted.

For the remainder of 2020, there is £57m of cash to spend on finishing more advanced projects.

A Unite spokesman said: “Given the priority of conserving cash while income uncertainties remain, we have deferred the delivery of Middlesex Street in London and Old BRI in Bristol into 2022.

“A decision on resumption of capex on Middlesex Street and Old BRI will be made once we have greater visibility over the impact of Coronavirus on the 2020/21 academic year.

“We are reviewing the possibility of delivering 2022 completions ahead of the start of the 2022/23 academic year to generate income from short-term lets.”

Delivery of this year’s completions will also be delayed by temporary site closures and amended working practices.

Unite this morning confirmed that work has now re-started across all existing sites with reduced numbers of operatives to maintain social distancing, in accordance with recent Government advice.

The firm said: “A number of scenarios are being considered for completion of the projects, including phased delivery where possible.

“We are proactively engaging with our University partners to highlight these risks and will continue to monitor the situation over the coming weeks.”

Latest news

Green light for £135m Leeds twin tower resi scheme

Construction to start in New Year on 500 build-to-rent apartments
38 mins ago

Plans in for £40m surf park at former Kent colliery

Seahive surf lagoon and health resort will be built near Deal
7 hours ago

Crushed demolition worker vows to return to industry

Shannon Brasier hoping to return to construction following horror accident
7 hours ago

Mount Anvil to start 900-home North London estate rebuild

Planning approval paves way for Barnsbury Estate rebuild in Islington
7 hours ago

Green light for major laboratory campus in Cambridge

Developer BioMed to tender first building on 600,000 sq ft lab complex in the New Year
8 hours ago

Belfast firm signs the biggest work deal yet under Project Gigabit

Fibrus to hook-up rural Cumbria to lightning-fast broadband under £108m deal
7 hours ago

McLaren wins Leeds logistics park contract

Work to start imminently on warehouse complex for Firethorn Trust
1 day ago

Work restarts on £683m waste power plant after site death

Construction suspended for a week of investigations following fatality
1 day ago

Demolition starts on £135m Wigan Galleries scheme

Contractor BCEGI starts work on project to redevelop Wigan town centre
1 day ago

Amey CEO to step down following private equity buyout

Amanda Fisher to leave once business is transferred to new owners
1 day ago

New body set up to vet plant operator card schemes

Contractor trades bodies unite to tackle competency concerns over plant operator skills cards
1 day ago

Kier leads switch to hybrid battery generators

Battery units work alongside smaller generators cutting run times by nearly 60%
1 day ago

Plans in for first Leeds co-living scheme

Watkin Jones submits plan to convert old Direct Line HQ into 230 studio flats
1 day ago

Demolition worker crushed by excavator

Court hears 20-year-old woman was left with "life changing injuries"
2 days ago

Government pays £700m for 50% stake in Sizewell C

New body, Great British Nuclear, will be set up to develop pipeline of nuclear projects
2 days ago

Costain wins Heathrow Airport asset renewal deal

Firm takes early contractor involvement role in Terminal 2 baggage handling upgrade
2 days ago

Worker killed on £683m waste power plant site

Fatal collision involving heavy goods vehicle on giant north London site
3 days ago

HS2 JV shifts four Wembley Stadiums of earth in record time

EKFB team digs and hauls 15 million cu m of muck in 20 months
2 days ago

Milestone wins £300m Wiltshire highways upkeep

Ringway will hand over to Milestone in March next year
2 days ago

Low-risk business model helps Renew post record results

Renew reveals latest acquisition with £15.6m purchase of water specialist Enisca
2 days ago

London Albert Embankment hotel towers approved

Two separate hotels rising to 26 and 29 storeys approved
2 days ago

Keltbray names new director of strategic engineering

Tim Lohmann takes up newly-formed role to drive innovative engineering solutions
2 days ago

Go-ahead for £200m lithium refinery on Teesside

Work to start next year on Europe's first lithium hydroxide processing plant
3 days ago

HS2 agency workers paid the wrong wages

Payroll software problems leave workers out of pocket
3 days ago

Electric car whizz joins O’Rourke

Contractor looking to learn tech lessons from other sectors
3 days ago

Electrical contractors still confident despite staff shortages

Order books healthy but worries grow over margins
3 days ago

BAM to deliver £44m Yeovil College campus build

BAM will submit a planning application next month to start work later next year
3 days ago

Bouygues starts London 700-home council estate rebuild

Developer Linkcity seals financial close on Old Kent Road Tustin Estate job
3 days ago

Construction’s “Leading Lights” recognised

Full details of latest winners of Considerate Constructor Scheme's latest awards
3 days ago

ISG wins £600m Hertfordshire Hollywood film studio job

Holywood studio Sunset awards pre-construction contract for 90-acre studio complex in Broxbourne
6 days ago

Contractor services