USAF Valuation

RNS Number : 5429E

Unite Group PLC

08 April 2011

 



8^th April 2011

THE UNITE GROUP PLC

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

31 MARCH 2011 VALUATION OF

THE UNITE UK STUDENT ACCOMMODATION FUND

The UNITE Group plc, the UK's leading developer and manager of student accommodation, today reports the Estimated Net Asset Value* ("NAV") of the UNITE UK Student Accommodation Fund (the "Fund") as at 31 March 2011.

The NAV as at 31 March 2011 was £0.822 per unit, reflecting an increase of 1.7% during the first quarter of 2011 (31 December 2010: £0.808 per unit).

The principal components of the movement in the value of the units were as follows:

Movement in property values	0.8%
Movement in swap values	0.8%
Other factors	0.1%
Increase in Estimated NAV per unit	1.7%

In arriving at the value of the Fund's units, its property portfolio, comprising 21,697 beds in 64 properties across 20 UK markets, was independently valued at £1.237 billion.

The movement during the quarter represents an increase of 0.5% in the underlying gross property values driven by quarterly rental growth. Valuation yields remained stable during the quarter at 6.67% (31 December 2010 6.67%). In line with previous years, we expect to recognize the majority of the annual rental growth in the next two quarterly valuations as reservations for the forthcoming academic year progress.

*Estimated Net Asset Value represents the capital position of the Fund and does not include undistributed income.

Commenting on the Fund's valuation, Joe Lister, UNITE's Chief Financial Officer, said:

"The Fund's positive performance in the first quarter of 2011 reflects continuing rental growth, which the Fund has delivered every quarter since its creation in 2006. This resulted in a 0.5% increase in the Fund's property portfolio value. We expect to deliver total rental growth of 3-4% over the year in line with previous guidance particularly given that reservations for the USAF portfolio for the forthcoming academic year are already at 60%, ahead of the 57% level achieved at the same time last year."

For further information, please contact:

The UNITE Group plc Mark Allan, Chief Executive Joe Lister, Chief Financial Officer	Tel: [phone]
Financial Dynamics Stephanie Highett Dido Laurimore Laurence Jones	Tel: [phone]

About The UNITE Group 

The UNITE Group is the UK's leading developer and manager of student accommodation, with a business model that focuses on four core areas;

1.    Development: UNITE undertakes the acquisition, planning and development of purpose-built student accommodation in the UK.

2.    Professional property management: UNITE is home to some 40,000 students and has consistently proven high occupancy levels across its portfolio.

3.    Proactive asset management: Through the continuous assessment of quality and location of its investment portfolio, UNITE are well positioned to deliver value adding strategies to those assets where further opportunities are identified.

4.    Co-investing asset management: Working on behalf of its partners, UNITE acts as Fund Manager for the UNITE UK Student Accommodation Fund in addition to being 16.3% shareholders. UNITE also manages a number of Joint Venture partnerships.

UNITE works closely with universities and colleges, in order to deliver high quality, well-located student accommodation at affordable prices in strong higher education markets.

Founded in 1991, UNITE is listed on the London Stock Exchange (UTG).

The UNITE UK Student Accommodation Fund

UNITE established the UNITE UK Student Accommodation Fund at the end of 2006. The Fund helped transform UNITE's business model to that of a developer of new purpose-built student accommodation and manager of funds which own student accommodation properties operated by UNITE and in which the Company has a significant minority stake.

 The number of unitholders in the Fund is over 100.

www.unite-group.co.uk

www.unite-students.com

 

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