The Unite Group plc has confirmed a possible cash and share offer for Empiric Student Property plc, valuing the business at 107 pence per share—representing a modest 1.8% discount to Empiric’s last reported NAV of 121p but a 10% premium to the latest closing share price. The bid includes 30p in cash and 0.09 new Unite shares per Empiric share, placing the total enterprise value around £719 million.

Empiric has agreed to a period of due diligence following the revised proposal submitted on 29 May. The deal, if progressed, would bolster Unite’s portfolio with a complementary, returner- and postgraduate-focused asset base.

The timing of the offer is notable. Empiric recently reported 67% pre-let rates for the 2025/26 academic year—a potential signal of softening demand. Unite, meanwhile, has announced asset disposals, suggesting a pivot to strategic repositioning. Both firms operate at the premium end of the PBSA (Purpose-Built Student Accommodation) market, which is now contending with multiple headwinds: legislative uncertainty (Renters’ Rights Bill), rising operational standards (Building Safety Act), and tighter student visa requirements.

The deal raises broader questions: is the sector reaching maturity, or is this consolidation a move to build resilience in a more complex regulatory and demand environment?

Longer-term, developers and contractors like Vistry and Watkin Jones Group may benefit from increased demand for modernised PBSA stock and enhanced BTR offerings—especially if institutional appetite continues to favour ESG-aligned, professionally managed residential assets.