OUTCOME OF USAF FUND RAISING

RNS Number : 5313N

Unite Group PLC

19 May 2015

 

Press release 19 May 2015

THE UNITE GROUP PLC

("Unite", the "Group", or the "Company")

OUTCOME OF USAF FUND RAISING

The Unite UK Student Accommodation Fund ("USAF", "the Fund") successfully completed a fundraising, accepting unconditional subscriptions for £306 million of new equity from existing and new investors. The new units will be priced at the prevailing quarterly NAV at the time when capital is drawn plus a premium of approximately 1.5%. The capital will be used to fund acquisitions and reduce leverage in the Fund.

As part of the fund raise, USAF has broadened and diversified its investor base providing access to different pools of capital. Allianz Real Estate, acting as a cornerstone investor, invested £100 million and a further £14 million was raised from other new institutional investors. Existing unitholders invested a total of £192 million, including Unite's investment of £60 million representing the planned deployment of proceeds from its own recent equity fundraising, maintaining its stake in USAF at circa 22%.

USAF is continuing to appraise a number of acquisition opportunities that will enhance the quality of the portfolio and expects to deploy the capital earmarked for investment by the end of the year.

USAF will initially use the funds to reduce leverage from the current level of 40% LTV and intends to maintain it below this level going forward.

Commenting on the transaction, Joe Lister, Unite's Chief Financial Officer, said:

"We are delighted to have successfully raised over £300 million of new capital into USAF providing the Fund with capacity for acquisitions and the ability to further de-lever the balance sheet in line with our plans.

"The strength of demand for USAF units together with the introduction of an investor of Allianz's global standing is a real endorsement of USAF's position as the leading fund in the sector, its historic performance and future strategy."

ENDS

For further information, please contact:

The Unite Group plc Joe Lister	Tel: [phone]
Bell Pottinger Victoria Geoghegan / Nick Lambert / Elizabeth Snow	Tel: [phone]

Notes to editors:

About the Unite UK Student Accommodation Fund ('USAF')

USAF is an open-ended non-listed real estate fund that focuses on acquiring and operating high quality student accommodation in the UK.

USAF is the largest specialist student accommodation fund in the UK and currently holds a portfolio of 68 properties valued at over £1.6 billion which are located in 22 markets across the UK providing over 24,000 bed spaces.

Established in December 2006, USAF has raised equity capital totalling over £950 million from UK and European institutional property investors on a periodic basis to raise funds for acquisitions and to manage leverage.

USAF has over 100 investors. Unite is the largest investor with a current co-investment stake of approximately 22%. Unite also acts as manager of USAF and operates its properties.

About Unite Students

Unite Students is the UK's leading manager and developer of student accommodation. We provide a home for over 43,000 students in 125 purpose built properties across 25 of the UK's strongest university towns and cities. We have over 1,100 employees and work in partnership with over 55 higher education providers, as well as renting rooms directly to students.

Our culturally-diverse customers are at the heart of our business and we aim to provide a home for students that supports their success, whether defined as academic achievement, personal growth or employability. Our properties provide high quality, well-located, safe accommodation that is close to university campuses, transport and local amenities. Our rent includes a study bedroom, all bills, insurance, 24-hour security and high speed Wi-Fi throughout our buildings.

Founded in 1991, Unite Group is a FTSE 250 company listed on the London Stock Exchange. We are pursuing a sustainable growth strategy designed to make the most of the resilient nature of the student accommodation sector. We aim to maintain the strongest brand in the sector and operate the highest quality portfolio through consistent investment in and improvement to our operating platform, highly selective development activity, asset management initiatives and portfolio recycling.

In addition to our wholly owned properties, we are also invested in and operate a small number of specialist funds and joint ventures with institutional investment partners, the largest of which is the £1.6 billion Unite UK Student Accommodation Fund.

The Group's charitable trust, the Unite Foundation, supports widening access to higher education, integrating students into the community and employability. It provides scholarships for disadvantaged students at seven universities and volunteering opportunities for our students and employees through partner organisations.

For more information visit our corporate website: www.unite-group.co.uk or www.unite-students.com.

 

END

 

 

MSCSFIFDAFISESI