USAF Valuation

RNS Number : 1349V

Unite Group PLC

06 July 2009

 



6 July 2009

The UNITE Group plc ('UNITE' / 'Group')

VALUATION OF THE UNITE UK STUDENT ACCOMMODATION FUND AT 30 JUNE 2009 

The UNITE Group plc, the UK's leading developer and manager of student accommodation, today reports the Estimated Net Asset Value at 30 June 2009 of the UNITE UK Student Accommodation Fund ('USAF'/ the 'Fund').

The Fund's Estimated Net Asset Value at 30 June 2009 was £0.712 per unit (31 March 2009: £0.684 per unit, 31 December 2008: £0.753 per unit) reflecting a 4.1% increase over the three months since 31 March 2009. The Fund's underlying property values increased by 0.03% in the quarter comparing favourably to the wider real estate sector.

The principal components of the increase in the Estimated Net Asset Value of the units were as follows:

Increase in property values (post gearing)	0.1%
Change in market value of interest rate swaps	4.1%
Other factors	-0.1%
	4.1%
Increase in underlying gross property values	0.03%

In arriving at the value of the Fund's units, its property portfolio was independently valued at £869 million (31 March 2009: £869 million). Continued rental growth in respect of the 2009/10 academic year offset 26 basis points of yield expansion, resulting in a marginal increase in the underlying gross property values during the second quarter.

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

'The Fund's strong relative performance in the second quarter of 2009 highlights the continued resilience of student accommodation compared to the broader real estate sector and its ability to generate consistent rental growth and strong occupational performance in the face of challenging economic conditions. Anticipated yield expansion has been more than offset by further quarterly rental growth driven by the strong reservations performance of the Fund's portfolio for the forthcoming academic year.'

ENDS

For further details please contact:

The UNITE Group plc Joe Lister Mark Allan	Tel: [phone]
Financial Dynamics Stephanie Highett / Dido Laurimore /  Rachel Drysdale / Laurence Jones	Tel: [phone]

About The UNITE Group plc

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

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

• Professional property management: UNITE is currently home to some 36,600 students in 24 towns and cities, with 99% occupancy across its portfolio. All properties are professionally managed by UNITE.

• 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 a significant shareholder. UNITE also heads up a number of joint venture partnerships.

UNITE works closely with universities and colleges 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).

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

UNITE Group established the UNITE UK Student Accommodation Fund at the end of 2006. The Fund was launched with the following principal objectives:

• to release capital for UNITE that is tied up in mature, stabilised investment assets for investment into higher added value development activity;

• to diversify UNITE's sources of income by providing a new revenue stream arising from management fees from the Fund; and

• to provide financial returns to investors in the Fund.

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.

See our websites:

Investors and corporate: www.unite-group.co.uk

Students: www.unite-students.com

Graduates: www.livocity.co.uk

 

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