Half Yearly Report

RNS Number : 9156M

Unite Group PLC

24 August 2011

 



24 August 2011

THE UNITE GROUP PLC

("UNITE" / "Group" / "Company")

HALF YEAR RESULTS FOR THE PERIOD ENDED 30 JUNE 2011

UNITE REPORTS STRONG GROWTH IN NAV AND PROFITABILITY DRIVEN BY HIGH OCCUPANCY AND RENTAL GROWTH

- Dividend reinstated -

The UNITE Group plc, the UK's leading developer and manager of student accommodation, today announces its half year results for the six months to 30 June 2011.

Financial highlights:

·    Adjusted diluted net asset value (NAV) per share increased by 5% to 310 pence (31 December 2010: 295 pence).

·    Strong growth in profit at a net portfolio contribution (NPC) level, up 67% to £7.2 million (30 June 2010: £4.3 million).

·    The value of the Group's stabilised property portfolio grew by 2.1%, as a result of rental growth in the first six months delivering £15 million of net valuation uplift.

·    Further £6 million of valuation uplift delivered from development activities.

·    £50 million of new development debt facilities and a further £180 million of new or extended investment debt secured during the period.

·    Interim dividend payment of 0.5pps declared, in line with the Group's plans to reinstate adividend in 2011 at a level between 25% and 50% of NPC for the year.

Operational and development highlights:

·    Strong demand for the Group's properties for the 2011/12 academic year, with reservations as at 23 August at 89% compared to 87% at the same time last year.

·    Rental growth for the 2011/12 academic year expected to be firmly within target range of 3% to 4%.

·    Good progress made with the Group's 2012-2014 development programme:

o  Planning and funding secured for a further 563 beds in London, taking the total number of beds secured in London with planning and funding to 1,904.

o  In exclusive negotiations on sites that could deliver an additional 1,200 beds in London.

o  A 477 bed development secured in Glasgow in line with target returns.

Mark Allan, Chief Executive of The UNITE Group, commented:

"The Group has made good progress during 2011 against each of its strategic and operational objectives, delivering strong growth in NAV and recurring profits and enabling us to reinstate our dividend. Reservations for the forthcoming academic year are very strong and we are on track to deliver our target development pipeline of 4,000 beds in London over the next couple of years, which will be significantly accretive to both earnings and NAV.

"As the shape of changes to university funding becomes clearer, we remain confident that we are positioned to deliver resilient performance and outperform the wider student accommodation sector as a result of our London focus, the high quality of our portfolio and university relationships and our established brand platform. We therefore look forward to the future with confidence."

 Presentation

There will be a presentation for analysts this morning at 11.30am. The live webcast will be available at www.unite-group.co.uk. Please contact Financial Dynamics for further details.

For further information please contact:

The UNITE Group	Tel: [phone]
Paul Harris
Financial Dynamics	Tel: [phone]
Stephanie Highett Dido Laurimore Laurence Jones

BUSINESS REVIEW

Summary and outlook

During the first six months of 2011, UNITE has made good progress against its strategic and operational objectives and delivered strong growth in net asset value and profits.  Adjusted diluted net asset value (NAV) per share increased by 5% in the period to 310 pence at 30 June 2011 (31 December 2010: 295 pence) and net portfolio contribution (NPC) increased by 67% to £7.2 million for the period (2010: £4.3 million).  The value of the Group's stabilised property portfolio grew by 2.1% as a result of rental growth for the six months, delivering £15 million of net valuation uplift, and a further £6 million of valuation uplift was delivered from development activities. 

The Group is well placed to continue this strong performance in the remainder of 2011, based on a strong reservations performance for 2011/12, particularly in London, a robust rental growth outlook and encouraging progress with the Group's development programme.

·     Reservations as at 23 August were 89% compared to 87% last year and 2011/12 portfolio occupancy is expected to be at least in line with 2010/11 (97%).

·     Rental growth will be firmly within our target range of 3% to 4% for the full year.

·    The Group's 2012-2014 London development programme is progressing well, particularly following the successful attainment of planning consent and funding in July for a 563 bed project in Camden to be delivered in 2013. The Group is also in exclusive negotiations to acquire further sites in London that could deliver 1,200 beds in the coming years and complete the Group's 4,000 bed target in London.

Good initial progress has also been made with the Group's selective disposal programme to fund further development activity. Contracts have been exchanged on the sale of non-core assets totalling £12 million with a further £10 million under offer and £50 million being actively marketed. The Group is targeting £100 million to £150 million of disposals by December 2012 to fund a similar amount of development, beyond the Group's current targets.

Looking beyond 2011, the Group remains well placed to deliver resilient performance and outperform the wider student accommodation sector by building on its important areas of competitive advantage:

·     London focus: London continues to have a significant supply shortfall that will persist well beyond the current pipeline of projects currently in development. As the largest and most experienced operator, UNITE is ideally placed to deliver continued growth in the capital.

·     Key relationships with strong Universities: Stronger Universities are set to thrive under the new funding regime and UNITE's portfolio is closely aligned to these institutions.

·     Established brand platform: The Group has a proven and scalable operating platform that will form the basis of continued efficiency and service improvements in the future.

·     Access to capital: Credit continues to be a scarce commodity and is likely to remain so for some time. Such conditions favour borrowers with a track record and strong balance sheet, providing UNITE with an edge over many developer/operators in the student accommodation sector.

Dividend

In light of the encouraging performance and outlook for the year, the Group will make an interim dividend payment of 0.5pps, in line with its declared intention to reinstate a dividend in 2011 at a level between 25% and 50% of NPC for the year. The dividend, which will be covered from operating cash flows, will be paid on 11 November 2011 to shareholders on the register at close of business on 14 October 2011.

 

Financial performance

 

Income Statement

The Group's continued focus on growing its profit from the operational business has seen the trend over the past three years of NPC growth continue with £7.2 million delivered in the first six months of the year (30 June 2010: £4.3m). This strong progress reflects our focus on building a robust and scalable operational platform that will continue to improve the profitability of the Group. The highlights from the income statement are as follows:

•    Growth in income from the managed portfolio of 17% driven by high occupancy, rental growth and new beds.

•    Growth in UNITE's share of rental income up 6%, after accounting for the dilutive impact of asset sales to USAF in late 2010.

•    Management fees received increased to £5.0 million from £3.9 million as assets under management grew to £1.9 billion following the sale of assets to USAF and the completion of the assets in the OCB joint venture in 2010.

•    Asset sales to USAF, a lower average cost of debt and the proactive use of surplus cash to temporarily pay down revolving debt facilities has resulted in lower finance costs of £21.9 million compared to £23.8 million in 2010.

 

Net portfolio contribution

	30 June 2011 £m	30 June 2010 £m
Total income from managed portfolio	112.5	96.0
UNITE's share of rental income	48.8	46.2
UNITE share of total income	43%	48%
UNITE's share of operating costs	(14.0)	(12.4)
Net operating income	34.8	33.8
Management fee income	5.0	3.9
Finance costs*	(21.9)	(23.8)
Operational overheads	(7.5)	(6.8)
Corporate costs and share of joint venture overheads	(3.2)	(2.8)
Net portfolio contribution	7.2	4.3

*Includes loan interest, interest rate swap payments, finance income and operating lease rentals

The Group reported an adjusted profit for the six month period of £4.6 million (2010: loss of

£4.0 million). The difference between NPC and the adjusted profit/loss is largely the impact

of the Development Segment. The key components of the Development Segment are pre-

contract costs of £1.5 million to secure the new development pipeline, which are up from

£1.2 million in June 2010 due to the increase in development activity, and reduced losses at

UNITE Modular Solutions of £2.3 million as a result of its surplus capacity.

A trading profit of £2.0 million was generated from sale of properties held as stock and the reversal of previous write-downs. 

Adjusted profit

	30 June 2011 £m	30 June 2010 £m
Net portfolio contribution	7.2	4.3
Development pre-contract costs	(1.5)	(1.2)
UMS losses	(2.3)	(4.6)
Development trading profits / write-downs	2.0	(2.9)
Other	(0.8)	0.4
Adjusted profit /(loss)	4.6	(4.0)

On an IFRS basis, which includes property and interest rate swap valuation movements, the Group reported a profit of £15.3 million attributable to UNITE shareholders, compared  to a profit of £9.8 million for the six months to June 2010.

 

Balance Sheet

Adjusted net asset value has increased to £500 million or 310 pence per share at 30 June 2011, up from £474 million or 295 pence per share at 31 December 2010. Reported net asset value, which includes interest rate swap values and some properties at cost, attributable to UNITE shareholders was £404 million at 30 June 2011 (31 December 2010: £388 million).

The main factors behind the 15 pence per share growth in adjusted net assets were:

•   The growth in the value of the Group's share of investment assets as a result of rental growth (+9  pence per share).

•   The value added to the development portfolio after pre-contract costs (+3 pence per share).

•   The positive impact of net portfolio contribution (+4 pence per share).

•   The impact of UMS losses (-1 pence per share).

 

Adjusted NAV bridge

Please click on link below to view NAV bridge:

http://www.rns-pdf.londonstockexchange.com/rns/9156M_-2011-8-23.pdf 

Adjusted gearing at 30 June 2011 was 78% compared with 71% at December 2010, 89% at June 2010 and 161% at 30 June 2009. The increase in gearing since December 2010 is largely due to capital expenditure of £64 million on the development pipeline in the first half of 2011. Adjusted net debt (excluding mark to market valuations) increased to £391 million at 30 June 2011 compared to £335 million at 31 December 2010, driven by the spend on the development pipeline.  With further development capital expenditure and asset sales planned, the Group will continue to manage gearing towards the lower end of its strategic range of 100-130%.

Our markets

Student Accommodation Market

 

The student accommodation market continues to demonstrate strong underlying demand and supply fundamentals. The recently announced changes to the funding of universities and tuition fees are due to come into force in 2012 and UNITE maintains its belief that student numbers will remain flat over the next few years at a national level with wider fluctuations occurring locally as greater market forces begin to take effect. This is based on the fact that university places have been over-subscribed by 30-40% for the past few years and that any reduction in applications is unlikely to have a material impact on the numbers of students attending university. Stronger Universities, many of whom UNITE works closely with, are likely to thrive under the new funding regime  and the trend of growing numbers of international students is likely to remain as the popularity of studying in the UK continues to grow.

UCAS has reported strong application levels for 2011/12, continuing the rise in recent years but partially driven by the changes in tuition fees from 2012/13. More than 200,000 applicants are expected to fail to secure a university place for 2011/12, a rise of approximately 8,000 on the number of unsuccessful applicants in 2010/11.

Publication of the White Paper has set out the Government's plans for the Higher Education sector in future years. A consultation on the Paper is due to end next month, but the main points include a confirmation of the new funding structures, and the removal from institutions' overall student number cap of two groups - students achieving AAB grades or above (whom universities would compete to attract) and 20,000 places for institutions whose fees are below £7,500 per annum.  UNITE's assessment of the Paper is that it will produce winners and losers, with the stronger universities in the Russell Group, 1994 Group and University Alliance (with all of whom UNITE is more closely aligned) likely to see strong income levels and student numbers.

Demand and supply outlook

The London market continues to benefit from a huge supply/demand imbalance, with universities providing only 20,000 beds for a total of 280,000 students. Private companies currently provide approximately 25,000 student beds in addition, with a development pipeline of a further 13,000 new beds likely to be completed by 2014. Even with the additional beds in this pipeline, the level of supply in London will still be roughly half of the rest of the UK with 2.8 students per available bed space compared to 1.5 per bed space across the remainder of the country.

Demand for university places in London continues to grow, particularly from overseas, with no material impact from more stringent immigration controls and international students still attracted by the reputation of London itself and its high-profile universities. These students will feel no impact from the policy announcements in the White Paper and most of the universities with whom UNITE works are forecasting continued increases in international student numbers.

Outside London, development activity is less concentrated and supply is only likely to increase in focused areas where local market factors look attractive. From a demand perspective, universities will be affected and respond to the new funding regime in different ways. Stronger universities are likely to prosper as a result of the funding changes and rental growth outlook will vary from city to city as the market develops. As a result of its historic focus on high quality locations and stronger universities, UNITE is well placed to continue to deliver a resilient performance in these times of change.

Student Accommodation Investment Market

Transaction activity in the student accommodation sector has continued to increase steadily throughout 2011 with yields proving stable in the provinces and showing signs of compression in London, where investor demand is strongest. Much of the demand appears to be driven by increasing awareness of the positive rental growth profile of the sector, which compares favourably to many other real estate classes.

Over the past 12 months, approximately £360 million of transactions have completed in the sector on a range of bases, compared to £125 million for the same period last year. Forward funding arrangements have proven particularly popular as an alternative means of funding development in the face of continued credit scarcity. The strong demand for assets located in London and/or with university agreements has resulted in yields that are 50-75 basis points lower than for provincial direct let assets, and are typically being sold to institutional funds or private family trusts.

Looking forward, we expect yields in London to show signs of modest compression, driven by strong investor demand, limited investment stock and clear rental growth prospects. Provincial yields should remain stable where underpinned by sound market fundamentals and rental growth prospects, although there is a risk of some yield expansion in cities with weaker Universities or where existing owners may come under financial pressure to sell assets. The continued lack of credit and the way in which lenders approach their existing exposures will remain the primary force in determining market direction outside London over the next couple of years.

Strategy

UNITE is the UK's leading developer and co-investing manager of student accommodation and is focused on delivering attractive returns for investors by using its unparalleled sector knowledge and experience to inform its strategic investment decisions. This ensures that the Company's investments are aligned to the UK's stronger Universities and that its portfolio offers students a broad range of weekly rents. The Group has a particular focus on London, the UK's largest and strongest university market, where approximately half of its capital will be invested by 2013.

The Group targets low double digit total returns on equity with modest associated risk and is seeking, over time, to deliver these returns through a balance of targeted development activity, capital growth and income.

Targeted development activity

The Group's current development programme aims to deliver 4,000 new student bed spaces in London between 2012 and 2014 and is firmly on track, with strong progress made in securing further sites, planning consents and debt finance during the first half of 2011. The Group is also targeting opportunities in a small number of cities outside London where there are strong growth fundamentals.

The Group targets a 9% ungeared yield on cost from development activity and will invest approximately £125 million per annum under its current programme, representing a peak of 20% of total Group invested equity. The Group's current development capital will be fully allocated to projects by the end of 2011, beyond which it intends to invest a further £100 million to £150 million in projects for 2014 and 2015 delivery, to be funded from the proceeds of ongoing selective disposals from the Group's investment portfolio.

Capital growth

UNITE aims to deliver consistent year on year growth in the value of its investment portfolio, primarily through increasing like-for-like net operating income from its portfolio. For the past few years annual growth has been in the range of 3-4% per annum and the Group is seeking to maintain growth at these levels in the medium term.

The Group has consistently outperformed the wider student accommodation sector and remains well positioned to continue doing so as a result of its London focus, the high quality of its portfolio locations and university relationships, on-going opportunities for proactive asset management in the portfolio and its well-established brand platform.

The Group uses leverage to enhance equity returns across its portfolio and has a long term strategic range of 100-130% net debt to equity. For the foreseeable future the Group intends to operate at the bottom end of this range.

Income

Historically UNITE has derived little recurring profit from its investment portfolio as profits have been driven by the development and subsequent sale of properties to the Group's various co-investment vehicles, in which it has minority stakes. However, over the next few years, the Group intends to grow significantly the recurring profits (defined and measured as NPC) from its investment and management activities and aims to achieve this through a combination of rental growth, additional income as the development pipeline is completed, increasing its ownership stake in its operating portfolio from the current level of 43% and delivering operating margin improvements and cost efficiencies.

Our business

 

Operations

UNITE is operating 39,739 beds across 131 properties for the 2010/11 academic year and has maintained occupancy of 97% throughout the year. The number of operational beds will increase to 41,016 with the opening of four new properties for the 2011/12 academic year.

As at 23 August 2011, reservations had been received for 89% of the portfolio, ahead of the 87% achieved at the same time last year and includes the additional 1,277 new beds being opened for the 2011/12 academic year. This reflects continued improvements to our customer service platform and strengthening relationships with a number of key university partners. The lettings performance in London has been particularly encouraging.

Central to the Group's long-term vision is the ambition to create a business which meets and exceeds the expectations of its key stakeholders. In the first half of 2011, UNITE has continued its focus on understanding the challenges and needs of students, Universities, employees, communities and investors to ensure it is able to work effectively with, and provide value for, each group.

UNITE's financial and operational performance has been supported by continued improvements to the core systems and processes that underpin its brand platform:

·    The Company has delivered three phased upgrades to its unique online booking system, each of which has enhanced operations from a customer viewpoint and improved operational efficiency.

·    Performance of the Group's maintenance operation has continued to improve. This has had a positive and notable impact on customer experience and increased efficiencies which have reduced some core costs.

The Group has plans in place to deliver further operating efficiencies across the business. These savings will offset recent increases in utility costs and lead to an overall improvement in operating margin over time.

Property portfolio

The valuation of UNITE's investment portfolio as at 30 June 2011, including its share of gross assets held in USAF and joint ventures, was £914 million (31 December 2010: £884 million). The Group's development assets have been independently valued at £203 million, which includes £33 million of valuation gain that is included in adjusted net assets but not recognised in the IFRS  reported net asset value.

 

Breakdown of property portfolio

				30 June 2011			31 December 2010
	Typical NOI yield	Wholly owned £m	Share of JVs £m	Total £m	Wholly owned £m	Share of JVs £m	Total £m
London	6.25%	165	178	343	162	172	334
Major Provincial	6.5%	224	176	400	204	179	383
Provincial	6.75%	130	41	171	127	40	167
Investment portfolio		519	395	914	493	391	884
Development		203	-	203	138	-	138
Property portfolio		722	395	1,117	631	391	1,022

In recent years, the Group has pursued a clear strategy to increase the proportion of its capital invested in London and other strong markets which offer the best combination of resilience and growth potential. As a direct result of this strategy, at the half year 38% of UNITE's share of the investment portfolio was in London, double the 19% it represented at December 2007. Following the completion of its secured pipeline, as set out below, the proportion of the Group's assets in London will increase to approximately 50%, assuming that ownership of the new assets is retained.

The Group has made further progress stabilising its 2009 and 2010 assets, valued at £154 million at 31 December 2010, and it expects around half of these assets to be stabilised by the end of 2011.  It will also have completed the refurbishment of three assets, with total capital expenditure of £3 million, in time for the 2011/12 academic year and will extend this programme into 2012 and beyond to continue enhancing the quality of the Group's portfolio and contribute further uplifts in rents and values in the coming years.

Rental growth was the main driver in the uplift in value of the stabilised investment portfolio, delivering an increase of 2.1% in the first six months of the year which is expected to grow to 3-4% for the full year. The average net initial yield across the UNITE portfolio was 6.6% at 30 June 2011, having remained at this level for the last 18 months. The following graph compares the yields on UNITE's completed portfolio and the IPD All Property Yield over the last few years and demonstrates the relative stability of UNITE's yield during a period of considerable volatility in the wider property market. Transaction volumes in the sector have recovered steadily since late 2009 and current valuations are underpinned by the resultant transactional evidence.

Historic net operating income yields

Please click on link below to view the Historic net operating income yields:

http://www.rns-pdf.londonstockexchange.com/rns/9156M_1-2011-8-23.pdf

Development

The Group has made excellent progress in the delivery of its development targets over the first half of 2011. Planning and funding has been secured for a further 563 beds in London, taking the total number of beds secured with planning and funding in London to 1,904 with a further 902 secured subject to planning. The Group is also in exclusive negotiations to acquire sites that could deliver a further 1,200 London beds in the future, which will see the completion of the Group's 4,000 bed target for London projects. Outside London, a 477 bed project has been secured in Glasgow in line with target returns.

The Group's full development pipeline is set out below:

Development pipeline

	Secured Beds	Total completed value	Total development cost	Capex in period	Capex remaining	UNITE NAV remaining	Yield on cost
		£m	£m	£m	£m	£m	%
London
2011	149	20	19	6	1	-	7.2%
2012	1,341	172	127	32	57	21	9.3%
2013	563	73	58	-	58	15	8.7%
2014	902	79	60	-	60	19	9.1%
	2,955	344	264	38	176	55	9.0%
RoUK
2011	1,128	80	66	18	1	3	8.4%
2012	477	35	27	8	19	4	8.9%
	1,605	115	93	26	20	7	8.5%
Total	4,560	459	357	64	196	62	8.9%

The Group has completed 1,277 beds due for the 2011/12 academic year on time and to budget. The four sites, located in London, Reading, Glasgow and Manchester will be open for occupation in September 2011.

The 2012 schemes, of which three are in London and one in Glasgow, are all on site and progressing well. In addition, planning was secured in July for the first 2013 project and we expect to obtain planning consents for the remainder of the secured pipeline within the next 12 months.

Beyond its current target development programme for London of 4,000 bed spaces to be delivered in 2012-2014, to which capital is likely to be fully allocated this year, the Group intends to fund a further phase of development beyond 2014 from the proceeds of a selective disposal programme. The Group is seeking to commit between £100 million and £150 million to this programme and is planning disposals to a similar level by the end of 2012. These developments are likely to be in London and a small number of other selected locations.

 

The Group's secured pipeline is expected to add approximately £15 million of NPC and £62 million of future NAV (39 pence per share), based on independent valuations and using current rental levels and valuation yields. The Group has sufficient cash resources available to complete this pipeline and maintain gearing within its target range, as shown below.

 

Estimated built-out NAV

	30 June 2011 £m	Development Pipeline £m	Built out £m
Property	722	258	980
Share of JVs adjusted net assets	178	-	178
Cash headroom (equity)	74	(27)	47
Borrowings	(465)	(169)	(634)
Net debt	(391)	(196)	(587)
Other	(9)	-	(9)
Adjusted NAV	500	62	562
Adjusted NAV per share	310p	39p	349p
Adjusted gearing	78%		104%

Development funding

The Group has continued to make good progress with its lenders and has secured funding for its 2012 pipeline, through a combination of existing and new facilities. The Group also has secured terms for a new facility to fund the first 2013 project that has received planning consent and has sufficient capacity in its existing revolving facilities to build out the remaining 2013-2014 secured pipeline. Further debt funding will be required to acquire and build additional schemes but, given the progress made with banks over the last two years, the Group remains satisfied that it can secure new debt on terms in line with plan.

UNITE Modular Solutions (UMS)

UMS designs, manufactures and installs lightweight steel frame modular buildings. Whilst it has historically focused on supplying modules for the Group's development programme, UMS has made significant progress in the first half of 2011 in winning external contracts, in line with the Group's strategy to establish UMS as a viable stand-alone business in the medium term.

So far this year, UMS has secured four external contracts, with a combined value of approximately £21 million, to provide modules for hotels for Travelodge and Bourne Leisure, residential accommodation for YMCA and student accommodation for Berkeley Homes. A further £7 million of third party contracts are under negotiation for delivery in 2011 and UMS will also supply 700 modules to UNITE for its 2012 pipeline, taking its forecast production to approximately 2,000 modules for 2011 compared to 1,100 for 2010.

In the six months to June UMS made a loss of £2.3 million after taking account of depreciation and the allocation of Group costs. With seasonal demand and the benefit of secured production, revenues will be higher in the second half of 2011 and we expect UMS to be EBITDA neutral as an operation for 2011 as a whole.

Financing

By working closely with its banking partners, UNITE has been able to make encouraging progress against its core financing objectives of extending debt maturities and securing new development finance. Despite banking markets tightening in the last six months, UNITE continues to have access to finance on acceptable terms, providing a significant competitive advantage over smaller developers and operators in the sector.

In the first half of 2011 the Group secured terms for £50 million of new development facilities for its own purposes and £180 million of new, or extensions to existing, investment debt facilities for its co-investment vehicles. This is as a direct result of the Group's policy of working closely with key relationship banks who place great importance on UNITE's market leading position, brand, track record and its strong balance sheet.

 

Key debt statistics

	30 June 2011	30 June 2010	31 December 2010
Group net debt (adjusted)	£391m	£409m	£335m
Adjusted gearing	78%	89%	71%
See-through gearing	120%	128%	115%
Group average cost of investment debt	6.5%	5.5%	6.8%
See through average cost of investment debt	6.0%	5.5%	6.2%
Proportion of investment debt hedged	89%	71%	97%
Adjusted net debt to property assets	54%	59%	53%

The Group continues to use surplus cash to pay down borrowings under revolving facilities in order to maximise savings on interest. As at 30 June 2011, the Group had a total of £37 million of cash being used to pay down revolving facilities that can be redrawn. Taken together with its cash balances, this provides an effective cash balance for the Group of £64 million.

The weighted average cost of debt on a see through basis fell during the period from 6.2% to 6.0% as the Group entered into new swaps at lower rates and/or extended swap maturities as facilities were extended.

The Group has also continued to make good progress in managing the maturity profile of its debt facilities and those of its co-investment vehicles. This has been achieved through a combination of extending and restructuring existing facilities with existing lenders and introducing new lenders where appropriate. The following chart sets out the debt maturity profile of the Group and its co-investment vehicles as at 30 June.

Debt maturity profiles

Please click on link below to view the Debt maturity profiles:

http://www.rns-pdf.londonstockexchange.com/rns/9156M_2-2011-8-23.pdf

The Group, including its co-investment vehicles, is in compliance with all of its debt covenants at 30 June 2011, and the Group has headroom such that values could fall by 20% before a breach in covenant would occur.

Co-investment vehicles

UNITE acts as co-investing manager of four specialist student accommodation vehicles that it has established, as outlined in the following table.

 

Funds / Joint Ventures

	Property £m	Net debt £m	Adjusted net assets £m	UNITE share £m	UNITE share	Average NOI yield
USAF	1,250	(572)	666	109	16%	6.7%
UCC	390	(246)	139	42	30%	6.3%
OCB	180	(100)	78	19	25%	6.3%
USV	58	(41)	15	8	51%	6.9%

Working with its joint venture partners, the Group is placing a strong focus on finalising a long-term strategy to replace, restructure or extend its joint ventures to complement its own growth strategy. Agreeing this strategy remains a priority in 2011 and the Group is in active dialogue with each of its partners to this end.

UNITE UK Student Accommodation Fund (USAF)

USAF has continued to deliver healthy returns to its investors. Gearing has reduced marginally to 48% loan-to-value and the Fund intends to maintain gearing at or around this level going forward. The Fund is considering making a modest level of selective disposals over the next year that, if completed, will provide capacity for further acquisitions, including from UNITE, in the future.

The secondary market for trading USAF units has continued to develop during 2011 with approximately £57 million of units having now been traded so far this year at a small premium to net asset value. There have been no requests for unit redemptions.

With respect to USAF's debt facilities, credit approved terms have been received for a four year extension on a £115 million banking facility with Lloyds Banking Group plc that was due to mature in 2012. This will have the impact of reducing USAF's average cost of debt marginally from 5.0% to 4.9%.

UNITE Capital Cities Joint Venture (UCC)

UCC, which owns student accommodation properties in London and Edinburgh, has fully invested all of its equity and will continue to focus on the operation of its portfolio and any asset management opportunities within its estate. As the vehicle matures in 2013, UNITE and GIC Real Estate, its joint venture partner, are jointly considering the most appropriate future strategy for UCC and its portfolio.

 

Oasis Capital Bank Joint Venture (OCB)

The OCB joint venture is focused on ensuring that its three assets, all of which are in London and were completed in 2010, reach stabilised rental and occupancy levels over the course of the next 6 to 12 months. Credit approved terms have been agreed for a new bank facility with Nationwide to re-finance a 2011 maturity within the joint venture and as a result the nearest maturity in the joint venture is now at the end of 2012.

UNITE Student Village Joint Venture (USV)

USV, which owns one building in Sheffield, is a joint venture with Lehmans Brothers. Lehman Brothers is now in administration and UNITE is in discussions with the administrators and lenders to the joint venture regarding the appropriate future strategy for USV.

 

Responsibility statement of the Directors in respect of the half-yearly financial report

We confirm that to the best of our knowledge:

The condensed set of financial statements has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU;

The Interim Management Report includes a fair review of the information required by:

(a) DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed financial set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and

(b) DTR 4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during that period; and any changes in the related party transactions described in the last annual report that could do so.

Mark Allan                                            Joe Lister

Chief Executive                                Chief Financial Officer

24 August 2011

Consolidated Income Statement

For the 6 months to 30 June 2011

	Note	Unaudited 6 months to 30 June 2011 £m	Unaudited 6 months to 30 June 2010 £m	Year to 31 Dec 2010 £m
Revenue	3(d)	49.0	48.6	193.4
Cost of sales	3(d)	(26.0)	(29.5)	(147.0)
Operating expenses	3(d)	(14.5)	(15.7)	(28.5)
		8.5	3.4	17.9
Loss on disposal of property		(0.3)	(0.7)	(2.9)
Net valuation gains on property		6.6	13.4	15.4
Profit before net financing costs		14.8	16.1	30.4
Loan interest and similar charges		(4.3)	(7.5)	(13.8)
Mark to market changes in interest rate swaps		(5.0)	(17.1)	(18.6)
Finance costs		(9.3)	(24.6)	(32.4)
Finance income		0.4	0.5	0.9
Net financing costs		(8.9)	(24.1)	(31.5)
Share of joint venture profit	8	10.4	20.1	25.3
Profit before tax		16.3	12.1	24.2
Tax		-	(0.9)	(2.9)
Profit for the period		16.3	11.2	21.3
Profit for the period attributable to
Owners of the parent company	3(e)	15.3	9.8	19.6
Minority Interest		1.0	1.4	1.7
		16.3	11.2	21.3
Earnings per share
Basic		9.5p	6.1p	12.2p
Diluted		9.5p	6.1p	12.2p

 

Consolidated Statement of Comprehensive Income

For the 6 months to 30 June 2011

	Unaudited 6 months to 30 June 2011 £m	Unaudited 6 months to 30 June 2010 £m	Year to 31 Dec 2010 £m
Profit for the period	16.3	11.2	21.3
Movements in effective hedges	(0.1)	0.1	0.5
Share of joint venture movements in effective hedges	0.6	(4.5)	0.1
Other comprehensive income for the period	0.5	(4.4)	0.6
Total comprehensive income for the period	16.8	6.8	21.9
Attributable to
Owners of the parent company	15.8	5.5	20.2
Minority Interest	1.0	1.3	1.7
	16.8	6.8	21.9

All movements above are shown net of deferred tax.

Consolidated Balance Sheet

At 30 June 2011

	Note	Unaudited 30 June 2011 £m	Unaudited 30 June 2010 £m	31 Dec 2010 £m
Assets
Investment property	6	396.8	412.1	375.7
Property, plant and equipment		6.6	7.3	6.9
Investment in joint ventures	8	169.0	161.1	161.6
Joint venture investment loans	8	13.7	12.7	13.2
Intangible assets		5.1	6.0	5.8
Total non-current assets		591.2	599.2	563.2
Completed property	6	106.6	198.8	105.1
Properties under development	6	170.1	47.5	113.0
Inventories	7	3.5	5.8	2.7
Trade and other receivables		35.7	34.0	44.6
Cash and cash equivalents		26.8	65.3	23.8
Total current assets		342.7	351.4	289.2
Total assets		933.9	950.6	852.4
Liabilities
Borrowings and financial derivatives	9	(0.4)	(51.4)	(0.5)
Trade and other payables		(59.3)	(45.6)	(52.8)
Current tax creditor		(0.3)	(0.6)	(0.5)
Total current liabilities		(60.0)	(97.6)	(53.8)
Borrowings and financial derivatives	9	(453.2)	(464.8)	(394.9)
Total non-current liabilities		(453.2)	(464.8)	(394.9)
Total liabilities		(513.2)	(562.4)	(448.7)
Net Assets		420.7	388.2	403.7
Equity
Issued share capital		40.1	40.1	40.1
Share premium		249.0	249.0	249.0
Merger reserve		40.2	40.2	40.2
Retained earnings		86.2	59.8	70.4
Hedging reserve		(11.7)	(17.0)	(12.2)
Equity attributable to the owners of the parent company		403.8	372.1	387.5
Minority interest		16.9	16.1	16.2
Total equity		420.7	388.2	403.7

 

Consolidated Statement of
Changes in Shareholders' Equity

For the 6 months to 30 June 2011

	Issued share capital £m	Share premium £m	Merger reserve £m	Retained earnings £m	Hedging reserve £m	Minority interest £m	Total £m
At 1 January 2011	40.1	249.0	40.2	70.4	(12.2)	16.2	403.7
Profit for the period	-	-	-	15.3	-	1.0	16.3
Other comprehensive income for the period	-	-	-	-	0.5	-	0.5
Total comprehensive income for the period	-	-	-	15.3	0.5	1.0	16.8
Fair value of share based payments	-	-	-	0.5	-	-	0.5
Dividends to minority interest	-	-	-	-	-	(0.3)	(0.3)
At 30 June 2011	40.1	249.0	40.2	86.2	(11.7)	16.9	420.7

	Issued share capital £m	Share premium £m	Merger reserve £m	Retained earnings £m	Hedging reserve £m	Minority interest £m	Total £m
At 1 January 2010	39.9	247.5	40.2	51.0	(12.8)	15.2	381.0
Profit for the period	-	-	-	9.8	-	1.4	11.2
Other comprehensive income for the period	-	-	-	-	(4.2)	(0.2)	(4.4)
Total comprehensive income for the period	-	-	-	9.8	(4.2)	1.2	6.8
Shares issued	0.2	1.5	-	-	-	-	1.7
Fair value of share based payments	-	-	-	0.5	-	-	0.5
Own shares acquired	-	-	-	(1.5)	-	-	(1.5)
Dividends to minority interest	-	-	-	-	-	(0.3)	(0.3)
At 30 June 2010	40.1	249.0	40.2	59.8	(17.0)	16.1	388.2

	Issued share capital £m	Share premium £m	Merger reserve £m	Retained earnings £m	Hedging reserve £m	Minority interest £m	Total £m
At 1 January 2010	39.9	247.5	40.2	51.0	(12.8)	15.2	381.0
Profit for the period	-	-	-	19.6	-	1.7	21.3
Other comprehensive income for the period	-	-	-	-	0.6	-	0.6
Total comprehensive income for the period	-	-	-	19.6	0.6	1.7	21.9
Shares issued	0.2	1.5	-	-	-	-	1.7
Fair value of share based payments	-	-	-	1.3	-	-	1.3
Own shares acquired	-	-	-	(1.5)	-	-	(1.5)
Dividends to minority interest	-	-	-	-	-	(0.7)	(0.7)
At 31 December 2010	40.1	249.0	40.2	70.4	(12.2)	16.2	403.7

 

Consolidated Statement of Cash Flows

For the 6 months to 30 June 2011

	Unaudited 6 months to 30 June 2011 £m	Unaudited 6 months to 30 June 2010 £m	Year to 31 Dec 2010 £m
Operating activities
Profit for the period	16.3	11.2	21.3
Adjustments for non cash / non operating items	(4.4)	(5.0)	4.9
Cash flows from operating activities before changes in working capital	11.9	6.2	26.2
Change in completed property and property under development	(57.5)	(4.2)	24.7
Change in inventories	(1.9)	2.3	4.9
Other changes in working capital	12.4	(13.2)	(15.7)
Cash flows from operating activities	(35.1)	(8.9)	40.1
Cash flows from taxation	(0.4)	(0.2)	0.8
Cash flows from investing activities	(10.2)	4.2	40.6
Cash flows from financing activities	48.7	10.1	(106.5)
Net increase / (decrease) in cash and cash equivalents	3.0	5.2	(25.0)
Cash and cash equivalents at start of period	23.8	48.8	48.8
Cash and cash equivalents at end of period	26.8	54.0	23.8

Cash and cash equivalents are stated net of operational overdrafts which are disclosed in note 9.

The outflow of cash from operating activities is attributable to spend on the 2011 developments which is largely offset by the drawdown of development loans; the inflow from which is shown in cash flows from financing activities.

Notes to the Consolidated Interim

Financial Statements 

1. Basis of preparation

This condensed set of financial statements has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU.

As required by the Disclosure and Transparency Rules of the Financial Services Authority, the condensed set of financial statements has been prepared applying the accounting policies and presentation that were applied in the preparation of the company's published consolidated financial statements for the year ended 31 December 2010.

The comparative figures for the financial year ended 31 December 2010 are not the company's statutory accounts for that financial year. Those accounts have been reported on by the company's auditors and delivered to the registrar of companies. The report of the auditors was (i) unqualified, (ii) did not include a reference to any matter to which the auditors drew attention by way of emphasis without qualifying their report, and (iii) did not contain a statement under section 498 (2) or (3) of the Companies Act 2006.

 

Going Concern

The Interim Report has been prepared on a going concern basis, which assumes the Group will be able to meet its liabilities as they fall due, for the foreseeable future. The Directors have prepared cash flow forecasts which show that the cash generated from operating activities will provide sufficient cash headroom for the foreseeable future.

The Group does not have any significant borrowing facilities expiring in the next 12 months and during the period has arranged a replacement loan for the one due to expire in a joint venture. The Group is in full compliance with its borrowing covenants at 30 June 2011.

2. Seasonality of operations

The results of the Group's investment division, a separate business segment (see note 3), are closely linked to the level of occupancy achieved in its portfolio of property. Occupancy typically falls over the summer months (particularly July and August) as students leave for the summer holidays. The Group attempts to minimise the seasonal impact by the use of short-term summer tenancies. However, the second half-year typically has lower revenues from the existing portfolio.

Conversely, the Group's build cycle for new properties is to plan to complete construction shortly before the start of the academic year in September each year. The addition of these completed properties in the second half increases the segment's revenues in that period.

3. Segment reporting

Segment information for the Group is presented in respect of the Group's business segments based on the Group's management and internal reporting structure. The Group undertakes its Development and Investment activities directly and in joint ventures with third parties. The joint ventures are an integral part of each segment and have similar economic and other characteristics to the Group's direct activities. Segment results include items directly attributable to a segment as well as those that can be allocated on a reasonable basis and is reported excluding mark to market and valuation movements.

The Directors do not consider that the Group has meaningful geographical segments as it operated exclusively in the United Kingdom in the year.

The Group's Development segment undertakes the acquisition and development of properties, (including the manufacture and sale of modular building components) to practical completion. The Development segment's revenue predominantly comprises the sales proceeds of properties, including those sold to the UNITE UK Student Accommodation Fund; it also includes revenue from the sale of modules to third parties and joint ventures, and development management fees earned from joint ventures.

The Investment segment comprises the asset and property management of completed properties, owned directly by the Group or by joint ventures. Its revenues are derived from net rental income and asset management fees earned from joint ventures.

 

a) Adjusted results

The Group reports an adjusted profit/(loss), on the basis recommended for real estate companies by EPRA, the European Public Real Estate Association, with the exception of profits and losses relating to sales or impairments to trading properties. EPRA recommends that real estate investment companies exclude these items as they are one-off in nature, however, the development of properties for future sale is an ongoing business activity for the Group and therefore results of this core activity are included in the adjusted result. The adjusted result excludes movements relating to changes in values of investment properties and interest rate swaps, profits on disposal of investment properties and the related tax effects. The adjusted net assets are shown on the basis recommended for real estate companies by EPRA, which excludes the mark to market valuation of swaps, deferred tax liabilities and recognises all properties at market value. The segmental analysis set out in detail in notes 3(b) to (e) have been summarised on an adjusted basis below.

	June 2011			June 2010
	Wholly owned £m	Joint venture £m	Total £m	Wholly owned £m	Joint venture £m	Total £m
Adjusted result
Rental income	32.7	16.1	48.8	33.6	12.6	46.2
Costs	(10.5)	(3.5)	(14.0)	(9.6)	(2.8)	(12.4)
Net operating income	22.2	12.6	34.8	24.0	9.8	33.8
Management fees	5.4	(0.4)	5.0	4.1	(0.2)	3.9
Administrative expenses	(7.5)	-	(7.5)	(6.8)	-	(6.8)
Finance costs	(15.7)	(6.2)	(21.9)	(19.0)	(4.8)	(23.8)
Investment segment result	4.4	6.0	10.4	2.3	4.8	7.1
Corporate and other costs (note 3(e))	(3.0)	(0.2)	(3.2)	(2.6)	(0.2)	(2.8)
Net portfolio contribution	1.4	5.8	7.2	(0.3)	4.6	4.3
Development segment result	(1.9)	-	(1.9)	(8.7)	-	(8.7)
Other	(0.7)	-	(0.7)	0.4	-	0.4
Adjusted profit / (loss)	(1.2)	5.8	4.6	(8.6)	4.6	(4.0)

	December 2010
	Wholly owned £m	Joint venture £m	Total £m
Adjusted result
Rental income	63.5	25.5	89.0
Costs	(20.3)	(6.6)	(26.9)
Net operating income	43.2	18.9	62.1
Management fees	8.9	(0.5)	8.4
Administrative expenses	(13.8)	-	(13.8)
Finance costs	(36.5)	(10.3)	(46.8)
Investment segment result	1.8	8.1	9.9
Corporate and other costs (note 3(e))	(5.4)	(0.4)	(5.8)
Net portfolio contribution	(3.6)	7.7	4.1
Development segment result	(1.3)	-	(1.3)
Other	(0.4)	-	(0.4)
Adjusted profit / (loss)	(5.3)	7.7	2.4

 

	June 2011			June 2010
	Wholly owned £m	Joint venture £m	Total £m	Wholly owned £m	Joint venture £m	Total £m
Summarised adjusted balance sheet
Rental properties	519.2	394.9	914.1	635.5	314.5	950.0
Properties under development	202.8	0.2	203.0	53.3	44.4	97.7
	722.0	395.1	1,117.1	688.8	358.9	1,047.7
Debt on completed properties (net of cash)	(283.2)	(211.3)	(494.5)	(340.5)	(156.1)	(496.6)
Debt on properties under construction	(107.6)	-	(107.6)	(68.4)	(22.1)	(90.5)
	(390.8)	(211.3)	(602.1)	(408.9)	(178.2)	(587.1)
Other assets / (liabilities)	(8.9)	(6.2)	(15.1)	6.7	(7.7)	(1.0)
Adjusted net assets	322.3	177.6	499.9	286.6	173.0	459.6

	December 2010
	Wholly owned £m	Joint venture £m	Total £m
Summarised adjusted balance sheet
Rental properties	493.1	391.1	884.2
Properties under development	137.8	0.2	138.0
	630.9	391.3	1,022.2
Debt on completed properties (net of cash)	(267.9)	(212.5)	(480.4)
Debt on properties under construction	(66.7)	-	(66.7)
	(334.6)	(212.5)	(547.1)
Other assets / (liabilities)	6.5	(7.1)	(0.6)
Adjusted net assets	302.8	171.7	474.5

 

b) Segment result (see through basis)

Information on the Group's investment activities on a see through basis (showing the Group's share of joint ventures), including an allocation of interest, is set out below.

	100% Unite			Share of co-invested joint ventures					Group on see through basis
	Wholly Owned £m	Leased /Other £m	Total £m	USAF £m	Capital Cities £m	Student Village £m	OCB £m	Total £m	Total £m
Unaudited 30 June 2011
Rental income	23.0	9.7	32.7	9.3	3.9	1.5	1.4	16.1	48.8
Property operating expenses*	(6.7)	(3.8)	(10.5)	(2.4)	(0.5)	(0.4)	(0.2)	(3.5)	(14.0)
Net operating income	16.3	5.9	22.2	6.9	3.4	1.1	1.2	12.6	34.8
Management fees	-	5.4	5.4	-	(0.4)	-	-	(0.4)	5.0
Operating expenses	-	(7.5)	(7.5)	-	-	-	-	-	(7.5)
	16.3	3.8	20.1	6.9	3.0	1.1	1.2	12.2	32.3
Operating lease rentals*	-	(6.2)	(6.2)	-	-	-	-	-	(6.2)
Loan interest and similar charges	(4.2)	-	(4.2)	(2.7)	(2.0)	(0.6)	(0.9)	(6.2)	(10.4)
Interest rate swap payments	(5.3)	-	(5.3)	-	-	-	-	-	(5.3)
Financing costs	(9.5)	(6.2)	(15.7)	(2.7)	(2.0)	(0.6)	(0.9)	(6.2)	(21.9)
Investment segment result	6.8	(2.4)	4.4	4.2	1.0	0.5	0.3	6.0	10.4
Corporate costs	-	(3.0)	(3.0)	-	-	-	-	-	(3.0)
Share of joint venture overhead	-	-	-	(0.1)	(0.1)	-	-	(0.2)	(0.2)
Net portfolio contribution	6.8	(5.4)	1.4	4.1	0.9	0.5	0.3	5.8	7.2

*Operating lease rentals result from sale and leaseback transactions which are considered a form of financing, hence the costs are shown next to interest above. Property operating expenses and operating lease rentals are shown as cost of sales in Note 3(d).

 

Information on the Group's investment activities on a see through basis (showing the Group's share of joint ventures), including an allocation of interest, is set out below.

	100% Unite			Share of co-invested joint ventures					Group on see through basis
	Wholly Owned £m	Leased /Other £m	Total £m	USAF £m	Capital Cities £m	Student Village £m	OCB £m	Total £m	Total £m
Unaudited 30 June 2010
Rental income	24.1	9.5	33.6	7.8	3.3	1.5	-	12.6	46.2
Property operating expenses*	(6.2)	(3.4)	(9.6)	(1.9)	(0.5)	(0.4)	-	(2.8)	(12.4)
Net operating income	17.9	6.1	24.0	5.9	2.8	1.1	-	9.8	33.8
Management fees	-	4.1	4.1	-	(0.2)	-	-	(0.2)	3.9
Operating expenses	-	(6.8)	(6.8)	-	-	-	-	-	(6.8)
	17.9	3.4	21.3	5.9	2.6	1.1	-	9.6	30.9
Operating lease rentals*	-	(6.0)	(6.0)	-	-	-	-	-	(6.0)
Loan interest and similar charges	(7.5)	-	(7.5)	(2.2)	(2.0)	(0.6)	-	(4.8)	(12.3)
Interest rate swap payments	(5.6)	-	(5.6)	-	-	-	-	-	(5.6)
Finance income	0.1	-	0.1	-	-	-	-	-	0.1
Financing costs	(13.0)	(6.0)	(19.0)	(2.2)	(2.0)	(0.6)	-	(4.8)	(23.8)
Investment segment result	4.9	(2.6)	2.3	3.7	0.6	0.5	-	4.8	7.1
Corporate costs	-	(2.6)	(2.6)	-	-	-	-	-	(2.6)
Share of joint venture overhead	-	-	-	(0.1)	(0.1)	-	-	(0.2)	(0.2)
Net portfolio contribution	4.9	(5.2)	(0.3)	3.6	0.5	0.5	-	4.6	4.3

*Operating lease rentals result from sale and leaseback transactions which are considered a form of financing, hence the costs are shown next to interest above. Property operating expenses and operating lease rentals are shown as cost of sales in Note 3(d).

 

Information on the Group's investment activities on a see through basis (showing the Group's share of joint ventures), including an allocation of interest, is set out below.

	100% Unite			Share of co-invested joint ventures					Group on see through basis
	Wholly Owned £m	Leased /Other £m	Total £m	USAF £m	Capital Cities £m	Student Village £m	OCB £m	Total £m	Total £m
31 December 2010
Rental income	45.7	17.8	63.5	14.9	7.1	2.7	0.8	25.5	89.0
Property operating expenses*	(12.0)	(8.3)	(20.3)	(4.2)	(1.4)	(0.8)	(0.2)	(6.6)	(26.9)
Net operating income	33.7	9.5	43.2	10.7	5.7	1.9	0.6	18.9	62.1
Management fees	-	8.9	8.9	-	(0.5)	-	-	(0.5)	8.4
Operating expenses	-	(13.8)	(13.8)	-	-	-	-	-	(13.8)
	33.7	4.6	38.3	10.7	5.2	1.9	0.6	18.4	56.7
Operating lease rentals*	-	(12.1)	(12.1)	-	-	-	-	-	(12.1)
Loan interest and similar charges	(13.6)	-	(13.6)	(4.5)	(4.1)	(1.3)	(0.5)	(10.4)	(24.0)
Interest rate swap payments	(11.0)	-	(11.0)	-	-	-	-	-	(11.0)
Finance income	0.2	-	0.2	0.1	-	-	-	0.1	0.3
Financing costs	(24.4)	(12.1)	(36.5)	(4.4)	(4.1)	(1.3)	(0.5)	(10.3)	(46.8)
Investment segment result	9.3	(7.5)	1.8	6.3	1.1	0.6	0.1	8.1	9.9
Corporate costs	-	(5.4)	(5.4)	-	-	-	-	-	(5.4)
Share of joint venture overhead	-	-	-	(0.1)	(0.2)	-	(0.1)	(0.4)	(0.4)
Net portfolio contribution	9.3	(12.9)	(3.6)	6.2	0.9	0.6	-	7.7	4.1

*Operating lease rentals result from sale and leaseback transactions which are considered a form of financing, hence the costs are shown next to interest above. Property operating expenses and operating lease rentals are shown as cost of sales in Note 3(d).

c) Segment assets and liabilities (see through basis)

The Group's balance sheet by segment, together with its share of joint venture assets and liabilities are set out on a see through basis below. The completed properties, which are developed with a view to sale to USAF, generate returns prior to sale that are included within the investment result. As a consequence of the role in both segments these assets have be treated as unallocated in the segmental analysis below.

 

 

	100% Unite Wholly Owned £m	Share of co-invested joint ventures					Group on see through basis
		USAF £m	Capital Cities £m	Student Village £m	OCB £m	Total £m	Total £m
Unaudited 30 June 2011
Investment property	396.8	204.1	116.7	29.1	45.0	394.9	791.7
Investment property under development	-	-	0.2	-	-	0.2	0.2
Completed property	106.6	-	-	-	-	-	106.6
Property under development	170.1	-	-	-	-	-	170.1
Investment & development property	673.5	204.1	116.9	29.1	45.0	395.1	1,068.6
Cash - investment	26.7	6.6	2.2	2.2	2.3	13.3	40.0
Other assets - investment	43.9	0.1	0.1	-	0.6	0.8	44.7
Other assets - development	7.1	-	-	-	-	-	7.1
Other assets	77.7	6.7	2.3	2.2	2.9	14.1	91.8
Debt - investment	(245.8)	(99.3)	(76.0)	(22.3)	(27.0)	(224.6)	(470.4)
Debt - completed property	(64.1)	-	-	-	-	-	(64.1)
Debt - development	(107.6)	-	-	-	-	-	(107.6)
Other liabilities - investment	(43.2)	(2.9)	(1.5)	(1.5)	(1.2)	(7.1)	(50.3)
Other liabilities - development	(16.3)	-	-	-	-	-	(16.3)
Interest rate swaps	(36.2)	(1.7)	(7.8)	(0.8)	(1.4)	(11.7)	(47.9)
Total liabilities	(513.2)	(103.9)	(85.3)	(24.6)	(29.6)	(243.4)	(756.6)
Net assets attributable to owners of the parent company	238.0	106.9	33.9	6.7	18.3	165.8	403.8
Minority interest	-	16.9	-	-	-	16.9	16.9
Net assets	238.0	123.8	33.9	6.7	18.3	182.7	420.7
Adjusted net assets
Net assets attributable to owners of the parent company	238.0	106.9	33.9	6.7	18.3	165.8	403.8
Mark to market of interest rate swaps	35.8	1.7	7.8	0.8	1.4	11.7	47.5
Valuation gain not recognised on property held at cost	48.5	-	-	-	-	-	48.5
Deferred tax	-	-	-	0.1	-	0.1	0.1
Adjusted net assets	322.3	108.6	41.7	7.6	19.7	177.6	499.9

 

	100% Unite Wholly Owned £m			Share of co-invested joint ventures			Group on see through basis
		USAF £m	Capital Cities £m	Student Village £m	OCB £m	Total £m	Total £m
Unaudited 30 June 2010
Investment property	412.1	170.5	112.9	31.1	-	314.5	726.6
Investment property under development	-	-	0.1	-	44.3	44.4	44.4
Completed property	198.8	-	-	-	-	-	198.8
Property under development	47.5	-	-	-	-	-	47.5
Investment & development property	658.4	170.5	113.0	31.1	44.3	358.9	1,017.3
Cash - investment	65.1	14.9	2.0	2.7	0.9	20.5	85.6
Other assets - investment	43.2	0.2	0.2	-	-	0.4	43.6
Other assets - development	9.9	-	-	-	0.8	0.8	10.7
Other assets	118.2	15.1	2.2	2.7	1.7	21.7	139.9
Debt - investment	(279.2)	(77.9)	(76.0)	(22.6)	-	(176.5)	(455.7)
Debt - completed property	(126.4)	-	-	-	-	-	(126.4)
Debt - development	(68.4)	-	-	-	(22.1)	(22.1)	(90.5)
Other liabilities - investment	(37.5)	(2.2)	(1.9)	(2.4)	-	(6.5)	(44.0)
Other liabilities - development	(8.5)	-	-	-	(2.8)	(2.8)	(11.3)
Interest rate swaps	(42.2)	(2.5)	(9.3)	(1.5)	(1.7)	(15.0)	(57.2)
Total liabilities	(562.2)	(82.6)	(87.2)	(26.5)	(26.6)	(222.9)	(785.1)
Net assets attributable to owners of the parent company	214.4	103.0	28.0	7.3	19.4	157.7	372.1
Minority interest	-	16.1	-	-	-	16.1	16.1
Net assets	214.4	119.1	28.0	7.3	19.4	173.8	388.2
Adjusted net assets
Net assets attributable to owners of the parent company	214.4	103.0	28.0	7.3	19.4	157.7	372.1
Mark to market of interest rate swaps	42.0	2.5	9.3	1.5	1.7	15.0	57.0
Valuation gain not recognised on property held at cost	30.4	-	-	-	-	-	30.4
Deferred tax	-	-	-	0.4	-	0.4	0.4
Adjusted net assets	286.8	105.5	37.3	9.2	21.1	173.1	459.9

 

 

	100% Unite Wholly Owned £m	Share of co-invested joint ventures					Group on see through basis
		USAF £m	Capital Cities £m	Student Village £m	OCB £m	Total £m	Total £m
31 December 2010
Investment property	375.7	201.1	113.6	31.5	44.9	391.1	766.8
Investment property under development	-	-	0.2	-	-	0.2	0.2
Completed property	105.1	-	-	-	-	-	105.1
Property under development	113.0	-	-	-	-	-	113.0
Investment & development property	593.8	201.1	113.8	31.5	44.9	391.3	985.1
Cash - investment	23.5	5.3	2.0	1.8	1.1	10.2	33.7
Other assets - investment	53.5	0.2	0.1	-	0.5	0.8	54.3
Other assets - development	6.5	-	-	-	-	-	6.5
Other assets	83.5	5.5	2.1	1.8	1.6	11.0	94.5
Debt - investment	(239.4)	(99.1)	(76.0)	(22.4)	(25.2)	(222.7)	(462.1)
Debt - completed property	(52.0)	-	-	-	-	-	(52.0)
Debt - development	(66.7)	-	-	-	-	-	(66.7)
Other liabilities - investment	(43.4)	(3.2)	(1.7)	(1.6)	(1.7)	(8.2)	(51.6)
Other liabilities - development	(9.7)	-	-	-	-	-	(9.7)
Interest rate swaps	(37.3)	(1.8)	(8.1)	(1.2)	(1.6)	(12.7)	(50.0)
Total liabilities	(448.5)	(104.1)	(85.8)	(25.2)	(28.5)	(243.6)	(692.1)
Net assets attributable to owners of the parent company	228.8	102.5	30.1	8.1	18.0	158.7	387.5
Minority interest	0.1	16.1	-	-	-	16.1	16.2
Net assets	228.9	118.6	30.1	8.1	18.0	174.8	403.7
Adjusted net assets
Net assets attributable to owners of the parent company	228.8	102.5	30.1	8.1	18.0	158.7	387.5
Mark to market of interest rate swaps	36.9	1.8	8.1	1.2	1.6	12.7	49.6
Valuation gain not recognised on property held at cost	37.1	-	-	-	-	-	37.1
Deferred tax	-	-	-	0.3	-	0.3	0.3
Adjusted net assets	302.8	104.3	38.2	9.6	19.6	171.7	474.5

 

 

d) Segment revenues and costs

	Note	Investment segment £m	Development segment £m	Unallocated corporate cost £m	Total £m
Unaudited 30 June 2011
Revenue		38.0	11.0	-	49.0
Cost of sales		(16.7)	(11.8)	-	(28.5)
Write back of work in progress, property under development and completed property		-	2.5	-	2.5
Total cost of sales		(16.7)	(9.3)	-	(26.0)
Operating expenses - Factory		-	(2.0)	-	(2.0)
Operating expenses - Other		(7.5)	(1.5)	(3.5)	(12.5)
		13.8	(1.8)	(3.5)	8.5
Loan interest and similar charges		(4.2)	(0.1)	-	(4.3)
Interest rate swap payment on ineffective hedges		(5.3)	-	-	(5.3)
Share of joint venture investment segment result		6.0	-	-	6.0
Adjust for minority interest		0.1	-	-	0.1
Segment result / corporate costs	3(e)	10.4	(1.9)	(3.5)	5.0

	Note	Investment segment £m	Development segment £m	Unallocated corporate costs £m	Total £m
Unaudited 30 June 2010
Revenue		37.6	11.0	-	48.6
Cost of sales		(15.6)	(11.2)	-	(26.8)
Write down of work in progress, property under development and completed property		-	(2.7)	-	(2.7)
Total cost of sales		(15.6)	(13.9)	-	(29.5)
Operating expenses - Factory*		-	(4.6)	-	(4.6)
Operating expenses - Other		(6.8)	(1.2)	(3.1)	(11.1)
		15.2	(8.7)	(3.1)	3.4
Loan interest and similar charges		(7.5)	-	-	(7.5)
Interest rate swap payment on ineffective hedges		(5.6)	-	-	(5.6)
Finance income		0.1	-	-	0.1
Share of joint venture investment segment result		4.8	-	-	4.8
Adjust for minority interest		0.1	-	-	0.1
Segment result / corporate costs	3(e)	7.1	(8.7)	(3.1)	(4.7)

*Factory operating expenses of £4.6m were included in cost of sales in the June 2010 interim report and have been reclassified to be consistent with the disclosure in the December 2010 accounts.

 

	Note	Investment segment £m	Development segment £m	Unallocated corporate costs £m	Total £m
31 December 2010
Revenue		72.2	121.2	-	193.4
Cost of sales		(32.4)	(109.9)	-	(142.3)
Write down of work in progress, property under development and completed property		-	(4.7)	-	(4.7)
Total cost of sales		(32.4)	(114.6)	-	(147.0)
Operating expenses - Factory		-	(4.8)	-	(4.8)
Operating expenses - Other		(13.8)	(3.2)	(6.7)	(23.7)
		26.0	(1.4)	(6.7)	17.9
Loan interest and similar charges		(13.6)	(0.2)	-	(13.8)
Interest rate swap payment on ineffective hedges		(11.0)	-	-	(11.0)
Finance income		0.2	-	-	0.2
Share of joint venture investment segment result		8.1	-	-	8.1
Adjust for minority interest		0.2	0.3	-	0.5
Segment result / corporate costs	3(e)	9.9	(1.3)	(6.7)	1.9

	Unaudited 30 June 2011 £m	Unaudited 30 June 2010 £m	31 Dec 2010 £m
Investment segment revenue
Management fees (note 3b)	5.4	4.1	8.9
Adjust asset management fee for minority interest	(0.1)	(0.1)	(0.2)
Management fee per income statement	5.3	4.0	8.7
Rental income from wholly owned and leased assets (note 3b)	32.7	33.6	63.5
Investment segment revenue	38.0	37.6	72.2

	Unaudited 30 June 2011 £m	Unaudited 30 June 2010 £m	31 Dec 2010 £m
Development segment revenue
Property sales from completed properties and properties under development	8.2	2.5	111.9
Manufacturing revenue	2.7	7.1	7.2
Development management fee	0.1	1.4	2.1
Development segment revenue	11.0	11.0	121.2

 

e) Segment result and adjusted profit / (loss)

The components of adjusted profit / (loss) are shown below together with a reconciliation to the profit / (loss) reported under IFRS. The items shown in this table represents the amounts attributable to the parent company shareholders and are, therefore net of any minority interest.

	Note	Unaudited 30 June 2011 £m	Unaudited 30 June 2010 £m	31 Dec 2010 £m
Investment segment result	3(b)	10.4	7.1	9.9
Development segment result	3(d)	(1.9)	(8.7)	(1.3)
Other unallocated items
Corporate costs (excluding share option fair value charges)		(3.0)	(2.6)	(5.4)
Share option fair value charges		(0.5)	(0.5)	(1.3)
	3(d)	5.0	(4.7)	1.9
Share of joint venture overheads		(0.2)	(0.2)	(0.4)
Current tax (charge) / credit		(0.2)	0.9	0.9
Adjusted profit / (loss) for the period attributable to owners of the parent company		4.6	(4.0)	2.4

	Unaudited 30 June 2011 £m	Unaudited 30 June 2010 £m	31 Dec 2010 £m
Reconciliation of adjusted profit / (loss) to IFRS reported profit
Adjusted profit / (loss) for the year attributable to owners of the parent company	4.6	(4.0)	2.4
Net valuation gains on properties	6.6	13.4	15.4
Loss on sale of property	(0.3)	(0.7)	(2.9)
Share of joint venture valuation gains on properties	3.5	15.1	16.8
Mark to market changes in interest rate swaps	(5.0)	(17.1)	(18.6)
Share of joint venture mark to market changes in interest rate swaps	-	(0.4)	(0.3)
Interest rate swap payments on ineffective hedges allocated to investment segment	5.3	5.7	11.0
Deferred tax	0.2	(1.7)	(3.7)
Share of joint venture deferred tax	0.4	(0.5)	(0.5)
Profit for the period attributable to owners of the parent company	15.3	9.8	19.6

 

4. Tax

Current Tax

Current tax expense for the periods presented is the estimated tax payable or receivable on the taxable result for the period, principally income tax on UK rental income arising in an overseas Group company.

Deferred Tax

The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using the tax rate expected to apply for the periods in which the assets and liabilities are anticipated to reverse.

The primary components of the deferred tax movement are related to changes in deferred tax liabilities, arising primarily from the Group's investment property and interest rate swaps.

5. Earnings per share and net asset value per share

The calculations of basic and adjusted earnings per share for the Group are as follows:

	Note	Unaudited 30 June 2011 £m	Unaudited 30 June 2010 £m	31 Dec 2010 £m
Net portfolio contribution	3(a)	7.2	4.3	4.1
Earnings
Basic (and diluted)		15.3	9.8	19.6
Adjusted	3(e)	4.6	(4.0)	2.4
Weighted average number of shares (thousands)
Basic		160,271	159,876	160,074
Dilutive potential ordinary shares (share options)		49	135	81
Diluted		160,320	160,011	160,155
Earnings per share (pence)
Basic		9.5	6.1	12.2
Diluted		9.5	6.1	12.2
Adjusted		2.9	(2.5)	1.5

Movements in the weighted average numberof shares have resulted from the issue of shares arising from the employee share based payment schemes.

The calculations of basic, adjusted and diluted net asset value per share for the Group are as follows:

	Note	Unaudited 30 June 2011 £m	Unaudited 30 June 2010 £m	31 Dec 2010 £m
Net assets attributable to ordinary shareholders
Basic		403.8	372.1	387.5
Adjusted pre dilution	3(c)	499.9	459.9	474.5
Outstanding share options		1.4	1.4	1.5
Adjusted diluted		501.3	461.3	476.0
Number of shares (thousands)
Basic		160,271	160,268	160,268
Outstanding share options		1,357	734	830
Diluted		161,628	161,002	161,098
Net asset value per share (pence)
Basic		252	232	242
Adjusted pre dilution		312	287	296
Adjusted diluted		310	286	295

 

6. Investment and development property

	Investment property £m	Completed property £m	Property under development £m	Total £m
Unaudited 30 June 2011
At 1 January 2011	375.7	105.1	113.0	593.8
Acquisitions	13.5	-	-	13.5
Cost capitalised	1.0	0.1	59.3	60.4
Interest capitalised	-	-	3.5	3.5
Transfer from work in progress	-	-	1.1	1.1
Disposals	-	-	(7.9)	(7.9)
Write back of net realisable value provision	-	1.4	1.1	2.5
Valuation gains	11.4	-	-	11.4
Valuation losses	(4.8)	-	-	(4.8)
Net valuation gains	6.6	-	-	6.6
At 30 June 2011	396.8	106.6	170.1	673.5

 

	Investment property £m	Completed property £m	Property under development £m	Total £m
Unaudited 30 June 2010
At 1 January 2010	403.6	204.1	38.1	645.8
Cost capitalised	1.1	0.4	8.4	9.9
Interest capitalised	-	-	0.4	0.4
Transfer from property under development	-	(1.1)	1.1	-
Disposals	(6.0)	(2.5)	-	(8.5)
Net realisable value provision	-	(2.1)	(0.5)	(2.6)
Valuation gains	14.6	-	-	14.6
Valuation losses	(1.2)	-	-	(1.2)
Net valuation gains	13.4	-	-	13.4
At 30 June 2010	412.1	198.8	47.5	658.4

	Investment property £m	Completed property £m	Property under development £m	Total £m
31 December 2010
At 1 January 2010	403.6	204.1	38.1	645.8
Cost capitalised	4.7	0.5	76.5	81.7
Interest capitalised	-	-	2.5	2.5
Transfer from property under development	-	(0.8)	0.8	-
Transfer from work in progress	-	-	0.6	0.6
Disposals	(48.0)	(96.6)	(3.0)	(147.6)
Net realisable value provision	-	(2.1)	(2.5)	(4.6)
Valuation gains	17.4	-	-	17.4
Valuation losses	(2.0)	-	-	(2.0)
Net valuation gains	15.4	-	-	15.4
At 31 December 2010	375.7	105.1	113.0	593.8

Property has been valued on the basis of "market value" as defined in the RICS Appraisal and Valuation Manual issued by the Royal Institution of Chartered Surveyors as determined by CB Richard Ellis Ltd, Jones Lang LaSalle Ltd and Messrs King Sturge, Chartered Surveyors as external valuers. Investment property and investment property under development are carried at fair value. Property under development of £170.1 million (2010 : £47.5 million) and Completed property of £106.6 million (2010 : £198.8 million) held in current assets are carried at the lower of cost and net realisable value, but their fair values have been determined as described above.

Following the formation of the UNITE UK Student Accommodation Fund it is likely that the fund will acquire the Group's future developments. Hence properties acquired with the intention of selling them to the UNITE UK Student Accommodation Fund following completion are treated as property under development in current assets (carried at the lower of cost and net realisable value), rather than fixed assets (carried at fair value). The impact if these properties were carried at fair value rather than cost is set out in the table below:

	Investment property £m	Completed property £m	Property under development £m	Total £m
Unaudited 30 June 2011
At 30 June 2011	396.8	106.6	170.1	673.5
Valuation gain not recognised on property held at cost brought forward	-	12.3	24.8	37.1
Valuation gain in period not recognised	-	3.5	7.9	11.4
Fair value at 30 June 2011	396.8	122.4	202.8	722.0

	Investment property £m	Completed property £m	Property under development £m	Total £m
Unaudited 30 June 2010
At 30 June 2010	412.1	198.8	47.5	658.4
Valuation gain not recognised on property held at cost brought forward	-	17.2	0.8	18.0
Valuation gain in period not recognised	-	7.4	5.0	12.4
Fair value at 30 June 2010	412.1	223.4	53.3	688.8

	Investment property £m	Completed property £m	Property under development £m	Total £m
31 December 2010
At 31 December 2010	375.7	105.1	113.0	593.8
Valuation gain not recognised on property held at cost brought forward		17.2	0.8	18.0
Disposals	-	(12.9)	-	(12.9)
Valuation gain in year not recognised	-	8.0	24.0	32.0
Fair value at 31 December 2010	375.7	117.4	137.8	630.9

7. Inventories

	Unaudited 30 June 2011 £m	Unaudited 30 June 2010 £m	31 Dec 2010 £m
Finished goods	0.6	0.3	-
Work in progress	1.6	4.7	2.2
Raw materials and consumables	1.3	0.8	0.5
	3.5	5.8	2.7

 

8. Investments in joint ventures

	Unaudited 30 June 2011			Unaudited 30 June 2010
	Investment in joint venture £m	Joint venture investment loan £m	Total interest £m	Investment in joint venture £m	Joint venture investment loan £m	Total interest £m
Share of profit:
Investment segment result	6.0	-	6.0	4.8	-	4.8
Minority interest share of investment segment result	0.7	-	0.7	0.6	-	0.6
Overheads	(0.2)	-	(0.2)	(0.2)	-	(0.2)
Net revaluation gain	3.9	-	3.9	16.2	-	16.2
Deferred tax	0.4	-	0.4	(0.5)	-	(0.5)
Impact of discounting on interest free loans	(0.4)	0.4	-	(0.4)	0.4	-
Ineffective swaps recognised in income statement	-	-	-	(0.4)	-	(0.4)
	10.4	0.4	10.8	20.1	0.4	20.5
Share of items recognised directly in reserves:
Movement in effective hedges	0.9	-	0.9	(4.9)	-	(4.9)
Deferred tax on movement in effective hedges	(0.1)	-	(0.1)	-	-	-
Other:
Profit adjustment related to trading with joint venture	(1.2)	0.1	(1.1)	(0.7)	0.1	(0.6)
Distributions received	(2.6)	-	(2.6)	(1.7)	-	(1.7)
	7.4	0.5	7.9	12.8	0.5	13.3
At start of period	161.6	13.2	174.8	148.3	12.2	160.5
At end of period	169.0	13.7	182.7	161.1	12.7	173.8

The impact of discounting the interest free joint venture loans is included in the finance income as disclosed in the income statement.

 

	31 December 2010
	Investment in joint venture £m	Joint venture investment loan £m	Total interest £m
Share of profit:
Investment segment result	8.1	-	8.1
Minority interest share of investment segment result	1.0	-	1.0
Overheads	(0.4)	-	(0.4)
Net revaluation gain	18.1	-	18.1
Deferred tax	(0.5)	-	(0.5)
Impact of discounting on interest free loans	(0.7)	0.7	-
Ineffective swaps recognised in income statement	(0.3)	-	(0.3)
	25.3	0.7	26.0
Share of items recognised directly in reserves:
Movement in effective hedges	(2.6)	-	(2.6)
Other:
Profit adjustment related to trading with joint venture	(4.0)	0.3	(3.7)
Distributions received	(5.4)	-	(5.4)
	13.3	1.0	14.3
At start of year	148.3	12.2	160.5
At end of year	161.6	13.2	174.8

 

9. Borrowings and financial derivatives

	Unaudited 30 June 2011 £m	Unaudited 30 June 2010 £m	31 Dec 2010 £m
Non-current
Bank and other loans	417.1	422.6	357.8
Interest rate swaps	36.1	42.2	37.1
	453.2	464.8	394.9
Current
Overdrafts	-	11.3	-
Bank loans	0.3	40.1	0.3
Interest rate swaps	0.1	-	0.2
	0.4	51.4	0.5

Independent review report to The UNITE Group plc

Introduction

We have been engaged by the company to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2011 which comprises of the consolidated income statement, the consolidated statement of comprehensive income, the consolidated balance sheet, the consolidated statement of changes in shareholders' equity, the consolidated statement of cash flows and the related explanatory notes. We have read the other information contained in the half-yearly financial report and considered whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements.

This report is made solely to the company in accordance with the terms of our engagement to assist the company in meeting the requirements of the Disclosure and Transparency Rules ("the DTR") of the UK's Financial Services Authority ("the UK FSA"). Our review has been undertaken so that we might state to the company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company for our review work, for this report, or for the conclusions we have reached.

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the DTR of the UK FSA.

As disclosed in note1, the annual financial statements of the group are prepared in accordance with IFRSs as adopted by the EU. The condensed set of financial statements included in this half-yearly financial report has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU.

Our responsibility

Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements (UK and Ireland) 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity issued by the Auditing Practices Board for use in the UK. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures.

A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK and Ireland) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 June 2011 is not prepared, in all material respects, in accordance with IAS 34 as adopted by the EU and the DTR of the UK FSA.

Stephen Bligh for and on behalf of KPMG Audit Plc

Chartered Accountants

15 Canada Square, London, E14 5GL

24 August 2011

 

END

 

 

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