Firm to incur additional 拢69m provision in 2023 results because of remediation work
Unite Students expects to recover more than half of its total cladding remediation costs through agreements with contractors.
In a trading update released this morning, the purpose-built student accommodation developer revealed it had completed remediation works on 16 buildings across its estate last year.
It said it would make provisions for remediation costs on a further 10 buildings, to be incurred over the next 12 to 18 months, adding that it eventually expected to recover between 50% and 75% of its total remediation costs from contractors.
鈥淭he settlement and recognition of these claims is likely to lag costs incurred to remediate buildings,鈥� the statement added.
An agreement with one contractor has already been reached, which will see the unnamed firm cover 75% of Unite鈥檚 remediation costs relating to five buildings, 鈥渁 portion of which will be recognised in the group鈥檚 year-end balance sheet鈥�.
Unite expects to incur an additional 拢69m provision in the second half of 2023 as a results of remediation commitments.
The firm is currently on site with four development schemes in London, Bristol, Edinburgh and Nottingham, which would see a total of 2,000 beds delivered between 2024 and 2026.
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