Valuation update for USAF and LSAV

RNS Number : 1432B

Unite Group PLC

05 October 2015

 

Press release 5 October 2015

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 30 September 2015.

At 30 September 2015, USAF's property portfolio was independently valued at £2,017 million representing a like for like increase of 2.1% during the quarter (11.1% in the nine months to 30 September). 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 £720 million, up 2.3% on a like-for-like basis in the quarter (14.8% in the nine months to 30 September). Following the practical completion of the 759 bed Angel Lane development in Stratford in August, LSAV's investment portfolio now 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 both USAF and LSAV on a like-for-like basis in the quarter (54 and 69 basis points respectively in the nine months to September). The overall USAF portfolio is now valued at an average yield of 5.8% and LSAV's portfolio at 5.1%.

The lettings cycle for the 2015/16 academic year is now largely complete. Unite's total portfolio of over 46,000 beds has achieved strong occupancy levels, with 99% of bed spaces let delivering rental growth of 3.8%.

Joe Lister, Unite Students Chief Financial Officer, commented: "We are delighted to report another strong lettings performance, with 99% of our rooms now let for the current academic year. The ongoing demand for high quality, well located student accommodation has supported rental growth of 3.8% across the portfolio."

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. We provide a home for over 46,000 students in 132 purpose built properties across 28 of the UK's strongest university towns and cities. We have over 1,000 employees and work in partnership with more than 60 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, fortnightly kitchen cleans and high-speed Wi-Fi throughout our buildings.

Founded in 1991, The Unite Group plc 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 £2.0 billion Unite UK Student Accommodation Fund.

The Group's charitable trust, the Unite Foundation, provides free student accommodation and a generous annual scholarship to 120 young people in the UK who aspire to a degree but face the most challenging circumstances.

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

 

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