Saba Capital discloses 5.1% economic stake in Unite

A regulatory filing shows Saba Capital holds a 5.1% economic interest in Unite Group. The firm directly owns 0.08% of Unite’s ordinary shares, with the remainder of its exposure provided through total return swaps held across several of Saba’s funds, including the Saba Capital Income & Opportunities Fund.

Market data places Saba among Unite’s largest investors. The swaps give Saba financial exposure to changes in Unite’s share price while most legal ownership of the underlying shares remains with other parties.

Total return swaps are contracts that transfer gains and losses tied to a share without transferring legal title to the underlying stock. Investors using swaps can take economic positions in a company’s performance without appearing on the company’s share register or, in many cases, gaining voting rights.

The disclosure coincides with Unite accelerating a programme of property disposals and portfolio reshaping. Unite has said it will use proceeds from sales to support share buybacks and return capital to shareholders after its share price fell by more than half over the past five years.

Canada Pension Plan Investment Board cut its stake to about 7% in June and its board representative, Thomas Jackson, stepped down as a non-executive director. CPPIB had held a board seat since 2019 following Unite’s acquisition of Liberty Living.

Saba has not publicly set out any plans for its position in Unite. The disclosure was filed while Unite continues its disposal programme and as other large shareholders have adjusted their holdings.