Saba Capital discloses 5.1% economic stake in Unite Group

Activist hedge fund Saba Capital disclosed a 5.1% economic interest in UK student accommodation provider Unite Group in a regulatory filing. The filing shows just 0.08% of Unite’s ordinary shares are held directly, with the remaining exposure provided by derivative contracts.

The exposure is largely held through total return swaps arranged across several Saba funds, including the Saba Capital Income & Opportunities Fund. Total return swaps give the fund economic exposure to Unite’s share performance without transferring ownership of the underlying shares. The small direct holding is recorded on Unite’s shareholder register. LSEG data ranks Saba among Unite’s largest shareholders by economic interest.

Unite has been selling properties and reducing exposure to assets it considers lower priority. Company management has said proceeds from disposals will be used to support share buybacks and return capital to shareholders. Unite’s share price has fallen by more than half over the past five years.

Saba has not disclosed any specific intentions for its position. The filing does not state whether the exposure will be used for active engagement, a strategic investment, or other purposes. The disclosure followed a reduction in Unite’s shareholder base by the Canada Pension Plan Investment Board, which cut its stake to about 7% in June and saw its board representative, Thomas Jackson, step down as a non-executive director.

Because much of Saba’s exposure is held through derivatives, the economic interest reported in the filing may not correspond to direct voting power or immediate changes to the shareholder register. The filing provides a snapshot of economic exposure at the reporting date and does not detail plans to alter board composition, corporate strategy, or capital allocation beyond announcements already made by Unite’s management.