Unite's Empiric acquisition faces CMA probe, occupancy challenges

Unite Group said Monday its takeover target, Empiric Student Property, has seen a drop in occupancy for the current academic year, a challenge the student-housing giant said it had anticipated.

In a trading update, Empiric reported occupancy of 89% for the 2025/26 academic year, down from 95% a year earlier, according to a statement from Unite.

Empiric attributed the decline to a reduction in bookings from Chinese students, which was partially offset by stronger demand from domestic UK students.

Unite said Empiric's occupancy was "slightly below" its expectations but that the potential for lower performance was factored into its offer terms.

The company stated it sees a "meaningful opportunity" to improve occupancy across the Empiric portfolio over the next three years using its own operational platform.

Unite reaffirmed its confidence that the acquisition will boost earnings and deliver at least 13.7 million British Pounds in annual cost savings.

The deal is currently undergoing a Phase 1 investigation by the U.K.'s Competition and Markets Authority, which Unite said was expected.

The company said it still expects the acquisition to become effective by the second quarter of 2026.