USAF and LSAV Valuation Update

RNS Number : 4224U

Unite Group PLC

07 April 2016

 

Press release 7 April 2016

THE UNITE GROUP PLC

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

QUARTERLY VALUATION UPDATE FOR THE UNITE UK STUDENT ACCOMMODATION 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 March 2016.

At 31 March 2016, USAF's property portfolio was independently valued at £2,132 million representing an increase of 2.8% during the quarter. The portfolio comprises 26,813 beds in 75 properties across 24 University towns and cities in the UK.

LSAV's investment portfolio was independently valued at £750 million, up 1.5% in the quarter. LSAV's investment portfolio comprises 4,636 beds across 12 properties in London and three properties in Edinburgh.

The increase in valuations is driven primarily by rental growth and eight basis points of yield compression in USAF and five basis points of yield compression in LSAV in the quarter. The overall USAF portfolio is now valued at an average yield of 5.65% and LSAV's portfolio at 4.97%.

The valuations reflect the recently announced changes to stamp duty rates, although the impact of this is relatively small as much of the USAF and LSAV portfolios are eligible for multiple dwelling relief which substantially offsets the higher rate of stamp duty. This will also be the case for Unite's wholly owned portfolio.

Joe Lister, Unite Students Chief Financial Officer, commented: "The USAF and LSAV portfolios have shown further positive growth in the first quarter of the year. Reservations for the 2016/17 academic year remain ahead of last year's run-rate and support a positive rental growth outlook. Continued investor appetite for the sector has supported a limited amount of further yield compression."

ENDS

For further information, please contact:

Unite Students Joe Lister, Chief Financial Officer James Puxty	Tel: [phone] Tel: [phone]
Bell Pottinger Victoria Geoghegan Nick Lambert Elizabeth Snow	Tel: [phone]

Notes to editors:

About Unite Students

Unite Students is the UK's leading manager and developer of student accommodation. Unite provides a home for over 46,000 students in 138 purpose built properties across 28 of the UK's strongest university towns and cities. The Group works in partnership with more than 60 higher education institutions as well as letting rooms directly to students.

Our culturally-diverse customers are at the heart of Unite's business and we aim to provide a home for students which supports their academic and personal success. Unite's properties provide students with high quality, well-located, safe accommodation that is close to university campuses, transport and local amenities. The rent includes a study bedroom, all bills, insurance, 24-hour security, fortnightly kitchen cleans and high-speed Wi-Fi throughout our properties.

Founded in 1991 in Bristol, The Unite Group plc is a FTSE250 company listed on the London Stock Exchange, employing over 1,250 people. We are pursuing a sustainable growth strategy designed to make the most of the resilient nature of the student accommodation sector. Our aim is to maintain the strongest brand in the sector and operate the highest quality portfolio through consistent investment in and improvement to the operating platform, highly selective development activity, asset management initiatives and portfolio recycling.

In addition to Unite's 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 £2 billion Unite UK Student Accommodation Fund (USAF).

The Group's charitable trust, the Unite Foundation, provides free student accommodation and a generous annual scholarship to around 125 young people in the UK who aspire to a degree but face the most challenging circumstances.

For more information you can visit Unite's corporate website www.unite-group.co.uk, the student site www.unite-students.com or the Unite Foundation www.unitefoundation.co.uk.

 

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