Activist hedge fund Saba Capital has recorded an economic exposure to Unite Group (LON:UTG) exceeding 5%, a regulatory filing shows. The position is made up primarily of financial instruments rather than ordinary shares, and when combined with a modest direct equity holding the total amounts to nearly 26.4 million voting rights in the student accommodation group.
The filing specifies that Saba held 0.084% of Unite's voting rights through ordinary shares and 5.04% of voting rights via financial instruments as of July 31. Together these interests translate into the stake reported in the filing and position Saba as the fourth largest shareholder in Unite by voting rights, based on LSEG data.
Saba's move follows the firm's recent campaign at flexible office-space provider Workspace (LON:WKP). At Workspace, Saba pushed for changes - including adjustments to the company's board - and increased its ownership over recent months to become Workspace's largest shareholder. The current disclosure in Unite continues a pattern of Saba taking prominent positions in real estate-related companies.
Unite Group, which is Britain’s largest operator of student housing, has maintained its annual guidance as of July. The company has been exploring strategic actions intended to concentrate on more resilient parts of its portfolio; that review has included consideration of selling lower-yielding assets. Management's reassessment is taking place against a backdrop the company identified as involving economic uncertainty and tighter visa rules that have weighed on student enrolments.
The filing does not outline Saba’s specific intentions for its Unite holdings beyond the disclosed breakdown between shares and financial instruments. It also does not indicate whether Saba intends to seek board representation or press for asset disposals. Unite’s confirmation of its annual forecast suggests the company is continuing to operate to its previously stated plan while evaluating portfolio adjustments in response to the factors affecting enrolment and returns.
Contextual note - The disclosure makes clear the composition of Saba's interest in Unite and its standing among shareholders, while Unite moves to sharpen its focus on higher-performing assets amid enrollment-related pressures.