The reduction below 10 percent ends CPP Investments' right to a board seat
Canada Pension Plan Investment Board has halved its stake in Unite Group and, in doing so, surrendered its right to a seat on the board of Britain's largest student housing provider, the company said on Tuesday.
According to Reuters, the pension manager cut its holding to 7 percent from 14.08 percent, dropping from largest shareholder to second-largest behind Norges Bank Investment Management, based on LSEG data.
IPE reported the reduction took the stake to 7.06 percent from 14 percent, held through CPP Investments' CPPIB European Student RE Holdings entity.
The move carries a governance cost.
As both sources reported, falling below 10 percent ends a relationship agreement struck when Unite bought Liberty Living from CPP Investments in 2019, which had let the Canadian manager nominate a non-executive director for as long as its stake stayed above that threshold.
Thomas Jackson, the CPP Investments nominee who joined the board after that 2019 deal, will step down with immediate effect.
Rising costs and a shifting economy have made every step of buying a home "feel higher-stakes," said Janet Boyle, senior vice-president of home equity finance at RBC.
The decision of whether to act now weighs on buyers, she said.
The reduction lands as Unite reshapes its own portfolio.
In April, according to Reuters, the company said it was exploring options to speed up asset sales and concentrate on accommodations yielding higher returns.
Listed in London with a market capitalization of €3bn, Unite is the UK's largest owner, manager and developer of purpose-built student accommodation, housing 72,000 students across 208 properties in 29 university towns and cities, IPE reported.
