Hedge funds increase stakes in Unite amid Empiric takeover

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.

Vanguard's holding in Unite rose to 4.96% as of Nov. 13, representing over 24 million shares, up from a 4.55% position the firm disclosed in early August.

The stake-building comes as Unite's acquisition of Empiric, announced in August for approximately 634 million British Pounds, faces a Phase 1 investigation by the U.K.'s Competition and Markets Authority.

Other investment firms have also been active, with hedge fund Balyasny Asset Management disclosing a 1.07% stake this week and Qube Research & Technologies revealing a 1.02% position.

The increased investor activity follows a recent update where Unite noted that its takeover target, Empiric, had seen a drop in occupancy for the current academic year, a challenge Unite said it had factored into its offer.

Unite has said it sees a "meaningful opportunity" to improve occupancy across the Empiric portfolio using its own operational platform.

The company recently reiterated its full-year guidance for adjusted earnings per share of 47.5 pence to 48.25 pence and stated it expects the acquisition to become effective by the second quarter of 2026.