Quarterly Valuation Update for USAF and LSAF

RNS Number : 7145B

Unite Group PLC

09 January 2015

 

Press release 9th January 2015

THE UNITE GROUP PLC

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

QUARTERLY VALUATION UPDATE FOR THE UNITE UK STUDENT ACCOMODATION FUND AND THE LONDON STUDENT ACCOMMODATION JOINT VENTURE

The Unite Group plc, the UK's leading developer and manager of student accommodation, announces the quarterly property valuation of the Unite UK Student Accommodation Fund ('USAF') and the London Student Accommodation Joint Venture ('LSAV') as at 31 December 2014. The LSAV valuation incorporates the combined UCC and LSAV portfolios following the merger of the two joint ventures in 2014 and will be reported quarterly going forward.

At 31 December 2014, USAF's property portfolio was independently valued at £1,573 million representing an increase of 1.2% during the quarter. The portfolio now comprises 24,820 beds in 68 properties across 22 university towns and cities. LSAV's property portfolio was independently valued at £426 million, up 1.4% in the quarter, and comprises 2,968 beds in 11 properties across London and three properties in Edinburgh.

The USAF property portfolio has increased in value by 3.9% and the LSAV portfolio by 4.6% over the year on a like-for-like basis, with rental growth contributing approximately three-quarters of the movement and modest yield compression making up the remainder.

The USAF portfolio is now valued at an average yield of 6.5% and the LSAV portfolio at an average of 5.9%.

Commenting on the valuations, Joe Lister, Unite Students Chief Financial Officer, said:

"The USAF and LSAV portfolios have both performed well in 2014, with a further year of strong occupancy and rental growth supplemented by modest yield compression. Based on indicative pricing of pending transactions in the market we expect yields to compress meaningfully from December 2014 levels during 2015 as those transactions complete."

For further information, please contact:

Unite Students Joe Lister / Rebecca Murch	Tel: [phone]
Bell Pottinger Victoria Geoghegan / Nick Lambert / Elizabeth Snow	Tel: [phone]

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 130 purpose built properties across 23 of the UK's strongest university towns and cities. We have over 1,000 employees and work in partnership with over 50 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 £1.5 billion Unite UK Student Accommodation Fund (USAF).

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.

 

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