Valuation update for USAF and LSAV

RNS Number : 3995L

Unite Group PLC

11 January 2016

 

Press release 11 January 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 December 2015.

At 31 December 2015, USAF's property portfolio was independently valued at £2,074 million representing a like-for-like increase of 2.3% during the quarter and 13.9% over the full year. 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 £738 million, up 2.5% on a like-for-like basis in the quarter and 17.4% over the full year. LSAV's investment portfolio comprises 4,636 beds across 12 properties in London and three properties in Edinburgh.

These increases in valuations have been driven primarily by rental growth and six basis points of yield compression in USAF and 10 basis points of yield compression in LSAV on a like-for-like basis in the quarter (65 and 81 basis points respectively over the full year). The overall USAF portfolio is now valued at an average yield of 5.7% and LSAV's portfolio at 5.0%.

As a result of the strong total return in USAF during 2015, Unite expects to earn a net performance fee in the region of £20 million. The fee will be paid in units in the first quarter of 2016.

Joe Lister, Unite Students Chief Financial Officer, commented: "USAF and LSAV have performed well during 2015 with property valuation growth of 14% and 17% respectively. Returns have been delivered through levels of high occupancy, rental growth and have been enhanced by yield compression.

The strong performance in 2015 has resulted in Unite Students receiving a net performance fee in the region of £20 million."

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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