USAF NAV

RNS Number : 0450K

Unite Group PLC

08 July 2011

 



8^th July 2011

THE UNITE GROUP PLC

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

30 JUNE 2011 VALUATION OF

THE UNITE UK STUDENT ACCOMMODATION FUND

The UNITE Group plc, the UK's leading developer and manager of student accommodation, today reports the Estimated Net Asset Value* ("NAV") of the UNITE UK Student Accommodation Fund (the "Fund") as at 30 June 2011.

The NAV as at 30 June 2011 was £0.837 per unit, reflecting an increase of 1.1% during the second quarter of 2011 (31 March 2011: £0.828 per unit).

The principal components of the movement in the value of the units were as follows:

Movement in property values	2.0%
Movement in swap values	-1.1%
Other factors	0.2%
Increase in Estimated NAV per unit	1.1%

In arriving at the value of the Fund's units, its property portfolio, comprising 21,697 beds in 64 properties across 20 UK markets, was independently valued at £1.250 billion. There were no acquisitions or disposals in the quarter.

The NAV movement during the quarter reflected an increase of 1.0% in the underlying gross property values, driven by quarterly rental growth. Valuation yields remained stable during the quarter at 6.67% (31 March 2011: 6.67%).

The Fund's portfolio has continued to deliver strong reservations, with 73% of bed spaces let for the 2011/12 academic year as at 4 July 2011 (2010/11: 71%). Quarterly rental growth of 1.0% takes rental growth over the six months to 30 June 2011 to 1.5%.

*Estimated Net Asset Value represents the capital position of the Fund and does not include undistributed income.

Commenting on the Fund's valuation, Joe Lister, UNITE's Chief Financial Officer, said:

"During the second quarter of 2011 rental growth of 1.0% has been achieved.  Further rental growth is anticipated in the third quarter as the 2011/12 sales cycle completes. Reservation levels for the forthcoming academic year also remain positive with 73% of the Fund's bed spaces reserved, ahead of the 71% achieved at the same point in 2010."

For further information, please contact:

The UNITE Group plc Joe Lister, Chief Financial Officer Paul Harris, Communications Director	Tel: [phone]
Financial Dynamics Stephanie Highett Dido Laurimore Laurence Jones	Tel: [phone]

About The UNITE Group 

The UNITE Group is the UK's leading developer and manager of student accommodation, with a business model that focuses on four core areas;

1.    Development: UNITE undertakes the acquisition, planning and development of purpose-built student accommodation in the UK.

2.    Professional property management: UNITE is home to some 40,000 students and has consistently proven high occupancy levels across its portfolio.

3.    Proactive asset management: Through the continuous assessment of quality and location of its investment portfolio, UNITE are well positioned to deliver value adding strategies to those assets where further opportunities are identified.

4.    Co-investing asset management: Working on behalf of its partners, UNITE acts as Fund Manager for the UNITE UK Student Accommodation Fund in addition to being 16.3% shareholders. UNITE also manages a number of Joint Venture partnerships.

UNITE works closely with universities and colleges, in order to deliver high quality, well-located student accommodation at affordable prices in strong higher education markets.

Founded in 1991, UNITE is listed on the London Stock Exchange (UTG).

The UNITE UK Student Accommodation Fund

UNITE established the UNITE UK Student Accommodation Fund at the end of 2006. The Fund helped transform UNITE's business model to that of a developer of new purpose-built student accommodation and manager of funds which own student accommodation properties operated by UNITE and in which the Company has a significant minority stake.

 The number of unitholders in the Fund is over 100.

www.unite-group.co.uk

www.unite-students.com

 

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