Student accommodation provider Unite has said it expects to spend up to £2m replacing cladding on some of its blocks after the Grenfell Tower fire.
The company has 132 properties and six failed initial government tests on aluminium composite material (ACM) cladding material.
The six towers have now all been checked and deemed safe for occupation by fire authorities and Unite is now awaiting results of the second round of government testing on different types of ACM panel and insulation.
The company said: “In the event that all ACM cladding needs to be replaced and using current available information, the number of beds we have available for part of the 2017/18 academic year could reduce by a maximum of 600 as we undertake remedial work, with an earnings impact of £0.5m-£1.5m and an anticipated cost of remedial work in the region of £1m-£2m.
“All estimates represent the cost to Unite Group and would be incurred across the 2017 and 2018 financial years. No provision has been recognised in the financial statements at the half year due to the uncertainty.
“The remedial measures we have already taken and our commitment to take further action where necessary following the second phase of BRE’s testing demonstrate our determination to put the safety of our residents first
“Our buildings are modern, well maintained and built with advanced fire management specifications and have rigorous fire safety management and maintenance regimes.”
