Quarterly Valuation Update for USAF and LSAF

RNS Number : 0673J

Unite Group PLC

01 April 2015

 

Press release 1st April 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, today announces the quarterly property valuation of the Unite UK Student Accommodation Fund ('USAF') and the London Student Accommodation Joint Venture ('LSAV') as at 31 March 2015.

At 31 March 2015, USAF's property portfolio was independently valued at £1,641 million representing a like for like increase of 4.3% during the quarter. The portfolio comprises 24,820 beds in 68 properties across 22 university towns and cities. Following completion of the forward sale by Unite to LSAV of Stratford One in the quarter, LSAV's property portfolio was independently valued at £606 million, up 6.8% on a like for like basis. Its portfolio comprises 3,969 beds in 12 properties across London and three properties in Edinburgh.

The quarterly increase in the valuations is driven primarily by 26 basis point of yield compression in USAF and 44 basis points of compression in LSAV.  The USAF portfolio is now valued at an average yield of 6.2% and the LSAV portfolio at an average of 5.5%.

Commenting on the valuations, Joe Lister, Unite Students Chief Financial Officer, said:

"The USAF and LSAV portfolios have had a strong start to the year. The large volume of transactions in the sector is beginning to result in a significant level of yield compression and we anticipate further compression over the remainder of 2015."

For further information, please contact:

Unite Students Joe Lister / Rebecca Murch	Tel: [phone]
Bell Pottinger Victoria Geoghegan / Nick Lambert / Elizabeth Snow	Tel: [phone]

About Unite Students

Unite Students is the UK's leading manager and developer of student accommodation. We provide a home for over 43,000 students in 125 purpose built properties across 25 of the UK's strongest university towns and cities. We have over 1,000 employees and work in partnership with over 55 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 and high speed Wi-Fi throughout our buildings.

Founded in 1991, Unite Group 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 £1.5 billion Unite UK Student Accommodation Fund (USAF).

The Group's charitable trust, the Unite Foundation, supports widening access to higher education, integrating students into the community and employability. It provides scholarships for disadvantaged students at seven universities and volunteering opportunities for our students and employees through partner organisations.

For more information visit our corporate website: www.unite-group.co.uk or www.unite-students.com.

 

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