Launch of New Debt Platform for USAF

RNS Number : 0260G

Unite Group PLC

31 May 2013

 



Press Release 31 May 2013

THE UNITE GROUP PLC

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

UNITE ANNOUNCES LAUNCH OF NEW DEBT PLATFORM FOR USAF 

The UNITE Group plc ("UNITE"), the UK's leading developer and manager of student accommodation, today announces the launch of a new debt funding platform for the UNITE UK Student Accommodation Fund ("USAF").

USAF is the largest specialist student accommodation fund in the UK, currently holding a portfolio of 63 properties valued at over £1.3 billion which are located in 20 markets across the UK providing over 21,000 bed spaces. UNITE is the largest investor in USAF with a holding of 16%.

The new secured debt funding platform will, subject to market conditions, initially borrow approximately £400 million through a combination of predominantly a benchmark 10 year sterling fixed rate bond issue and a small five year revolving credit facility, corresponding to an overall loan to value of around 50%.

The new bond, which will rank pari passu with the new revolving credit facility, will be secured on a portfolio of 39 properties and is expected to obtain a strong investment grade rating. The bond roadshow will take place in the week commencing 3 June 2013, and the revolving credit facility will, subject to satisfaction of conditions precedent, come into effect when the bond is issued.

The proposed transaction will achieve a refinancing and maturity extension on about two thirds of USAF's existing debt facilities, increasing the weighted average debt maturity from 2 years to 7 years whilst also resulting in an overall reduction in the total cost of interest.

ENDS

For further information, please contact:

The UNITE Group plc                                                                                        Tel: [phone]

Joe Lister, Chief Financial Officer

Sophie Joyce, Head of Corporate Communications          

FTI Consulting                                                                                                  Tel: [phone]

Stephanie Highett

Dido Laurimore

Faye Walters

Notes to editors:

About the UNITE UK Student Accommodation Fund ('USAF')

USAF is an open-ended non-listed real estate fund that focuses on acquiring and operating high quality student accommodation in the UK.

USAF is the largest specialist student accommodation fund. It currently holds a portfolio of 63 properties valued at over £1.3 billion which are located in 20 markets across the UK providing over 21,000 bed spaces.

Established in December 2006, USAF initially raised equity capital totalling £370 million from UK and European institutional property investors. It was initially seeded with a £515 million portfolio comprising 31 properties acquired from UNITE Group.

USAF completed its most recent capital raise in December 2009, raising £167 million of equity. The capital raise was oversubscribed, reflecting the appetite from investors for the student accommodation sector.

USAF has now grown to having over 100 investors. UNITE is the largest investor with a current co-investment stake of 16.3%. UNITE also acts as manager of USAF and operates its properties.

About The UNITE Group 

UNITE is the UK's leading developer and manager of student accommodation, with a business model that focuses on two core areas:

1.       Development and Asset Management: UNITE undertakes the acquisition, planning and development of purpose-built student accommodation in the UK. Through the continuous assessment of quality and location of its investment portfolio, UNITE is well positioned to deliver value-adding strategies to those assets where further opportunities are identified. Working on behalf of its partners, UNITE acts as Fund Manager for the UNITE UK Student Accommodation Fund in which it owns a 16.3% share. UNITE also manages a number of Joint Venture partnerships.

2.       Professional property management: UNITE is home to 42,000 students in over 120 properties across 23 of the UK's strongest university cities, and has consistently proven high occupancy levels across its portfolio.

UNITE works closely with higher education institutions in order to deliver high quality, well-located student accommodation at affordable prices in strong higher education markets. In May 2013 UNITE was awarded Student Accommodation Provider of the Year at Property Week's RESI Awards. UNITE has also been recognised by the Global Real Estate Sustainability Benchmark (GRESB) as a regional sector leader for sustainability.

Founded in 1991, UNITE is a FTSE 250 company listed on the London Stock Exchange (UTG). For more information, please visit www.unite-group.co.uk or www.unite-students.com   

 

END

 

 

MSCUAUARONAVOAR