Activist hedge fund Saba Capital has disclosed a 5.1% economic interest in Unite Group, making it one of the largest shareholders in the UK student accommodation provider as the company accelerates property disposals and returns capital to investors, according to a report by QuotedData.
The reporter cites a regulatory filing as showing that Saba holds only 0.08% of Unite’s ordinary shares directly, with the remaining 5% represented by total return swaps held across several of its funds, including the Saba Capital Income & Opportunities Fund.
The position makes Saba Unite’s fourth-largest shareholder, according to LSEG data.
The investment comes as Unite is reshaping its portfolio, selling properties and reducing its exposure to lower-priority assets. The company intends to use proceeds from disposals to support share buybacks and return capital to shareholders after its stock price fell by more than half over the past five years.
Saba has not publicly disclosed its intentions towards Unite, leaving open the possibility that the investment could develop into an activist campaign or remain a strategic position.
The timing also follows a reduction in Unite’s shareholder base by Canada Pension Plan Investment Board. CPPIB cut its stake to about 7% in June, prompting its board representative Thomas Jackson to step down as a non-executive director.
CPPIB had held a board seat since 2019, when Unite acquired Liberty Living from the Canadian pension fund.
