Unite Group's planned acquisition of rival Empiric Student Property is facing a formal investigation by the UK's competition regulator, the company said on Wednesday.
The Competition and Markets Authority has started its pre-notification process ahead of a formal Phase 1 investigation into the proposed takeover.
The student accommodation provider said it anticipates the deal will become effective by the second quarter of 2026, subject to regulatory approval and other conditions.
The review comes just days after Empiric's shareholders approved the cash-and-share offer on Oct. 6.
In a trading update, Unite also announced it has sold 95.2% of its rooms for the 2025/26 academic year, achieving rental growth of 4.0%.
The company reiterated its full-year guidance for adjusted earnings per share of 47.5 pence to 48.25 pence.
"We have sold 95% of beds and delivered rental growth of 4.0%," Chief Executive Officer Joe Lister said.
"While this is slightly below our target, we saw a strong clearing period which has contributed to our outperformance of the wider PBSA sector."
Unite reported that its UK Student Accommodation Fund portfolio was valued at 2.85 billion British Pounds as of Sept. 30, while its London joint venture portfolio was valued at 2.11 billion British Pounds.
More from this issuer
Related coverage
Investment firm The Vanguard Group has increased its stake in student accommodation provider Unite Group, according to a regulatory filing, amid growing investor interest as the company proceeds with its takeover of rival Empiric Student Property.
Hedge fund Qube Research & Technologies has boosted its stake in student accommodation provider Unite Group to over 1%, a regulatory filing showed Friday, amid the company's ongoing takeover of rival Empiric Student Property.
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.
Unite Group PLC reported strong bookings for the upcoming academic year, driven by high demand from both domestic and international students, supporting its outlook for rental growth.