Unite Group PLC Quarterly Valuation Update for USAF and LSAV (0494T)

TIDMUTG

RNS Number : 0494T

Unite Group PLC

09 October 2017

 
 
   Press release 
 
   9 October 2017 
 

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 - valuations rise 1.6% in the third quarter

The Unite Group plc, the UK's leading manager and developer 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 2017.

At 30 September 2017, USAF's property portfolio was independently valued at GBP2,137 million representing a like-for-like increase of 1.6% during the quarter. The portfolio comprises 24,450 beds in 69 properties across 23 University towns and cities in the UK.

LSAV's investment portfolio was independently valued at GBP1,102 million, up 1.6% in the quarter. LSAV's investment portfolio comprises 8,477 beds across 13 properties in London and Aston Student Village in Birmingham.

The increase in valuations is driven by rental growth and 7 basis points of yield compression across both USAF and LSAV in the quarter. The overall USAF portfolio is now valued at an average yield of 5.5% and LSAV's portfolio at 4.9%.

As we enter the final stages of the lettings cycle for the 2017/18 academic year, Unite Students has achieved a strong lettings performance across its whole portfolio with 99% of bed spaces let.

Joe Lister, Unite Students Chief Financial Officer, commented:

"The lettings performance for the 2017/18 academic year has been very strong with occupancy at 99% and full year rental growth at the mid to upper end of our 3.0% - 3.5% forecast. Contracts with university partners guaranteeing income and rental growth now underpin 60% of the portfolio providing a high level of certainty over future income and demonstrating the strength of our relationships with high to mid-ranking universities. Demand from direct let bookings remains strong due to our high quality portfolio and market-leading service platform."

ENDS

For further information, please contact:

 
 Unite Students 
  Joe Lister, Chief Financial Officer      Tel: +44 117 
  Candice Macdonald, Head of Corporate     302 7005 
  Communications                           Tel: +44 7525 
                                           592521 
 

Notes to editors:

About Unite Students

Unite Students is the UK's largest and most established manager and developer of purpose-built student accommodation. It provides a home for around 50,000 students, in more than 140 properties, across 24 leading university cities in England and Scotland. Unite works in partnership with more than 60 Higher Education institutions and also lets rooms directly to students.

Unite's purpose is to provide a home to its culturally diverse customers, offering them a strong foundation for academic and personal success. The accommodation is high quality, safe and close to university campuses, transport links and local amenities. Students live in ensuite study bedrooms with rents covering all bills, insurance, 24-hour security, fortnightly cleaning of communal kitchens and bathrooms and high-speed Wi-Fi.

Founded in 1991 in Bristol, the Unite Group plc is a FTSE250 company, listed on the London Stock Exchange, employing more than 1,400 people. It pursues a sustainable growth strategy, designed to make the most of the resilient nature of the student accommodation sector. Unite is focused on maintaining its position as the leading provider of student accommodation in the UK, by having the best brand, operating the highest quality portfolio and maintaining the strongest capital structure in the sector. This is achieved with consistent investment in, and improvement to, the operating platform; highly selective development activity and asset management initiatives.

Unite has invested in and operates a two specialist funds and joint ventures with institutional investment partners, the GBP2 billion Unite UK Student Accommodation Fund (USAF) and the GBP1 billion London Student Accommodation Vehicle (LSAV).

Unite is the founder and major donor of the Unite Foundation. Since 2012, this has provided free student accommodation and financial support to 160 young people in the UK who lack family support.

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.

This information is provided by RNS

The company news service from the London Stock Exchange

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October 09, 2017 04:30 ET (08:30 GMT)