USAF Valuation

RNS Number : 2994F

Unite Group PLC

11 January 2010

 



11 January 2010

THE UNITE GROUP PLC

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

31 DECEMBER 2009 VALUATION OF THE UNITE UK STUDENT ACCOMMODATION FUND
Fund's portfolio valuation exceeds £1 billion

The UNITE Group plc, the UK's leading developer and manager of student accommodation, today reports the Estimated Net Asset Value as at 31 December 2009 of the UNITE UK Student Accommodation Fund ("USAF"/ the "Fund").

The Fund's Estimated Net Asset Value* as at 31 December 2009 was £0.762 per unit reflecting an increase of 6.6% during the fourth quarter and 1.2% in the 12 months to December 2009 (30 September 2009: £0.715 per unit, 31 December 2008: £0.753 per unit).

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

Impact on Estimated NAV per unit:	Q4	2009
Movement in property values	5.7%	2.7%
Movement in swap values	-0.1%	-0.1%
Unit issuance premium	1.9%	0.3%
Portfolio acquisition costs	-1.1%	-1.1%
Other factors	0.3%	-0.7%
Increase in Estimated NAV per unit	6.6%	1.2%
Increase in underlying gross property values	3.4%	1.1%

In arriving at the value of the Fund's units, its property portfolio, now comprising 19,468 bed spaces in 58 properties across 18 UK markets, was independently valued at £1,003 million.

The movement during the fourth quarter represents an increase of 3.4% in the underlying gross property values (excluding those assets acquired in December), driven by 18 basis points of yield compression and 1.0% of quarterly rental growth.

In the 12 months to December 2009, the value of the property portfolio held throughout the year increased by 1.1%.  An average 46 basis points of yield expansion was offset by 8.4% of rental growth.

Following these movements and the acquisition of a portfolio of assets in December, the average net initial yield of the Fund's portfolio held at 31 December stood at 6.84%.

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

"The Fund's net asset value performance in the fourth quarter and throughout 2009 reflects the student accommodation sector's ongoing outperformance of the broader market. The combination of modest compression in yields, and further quarterly rental growth resulted in 3.4% growth in the Fund's property values during the fourth quarter."

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

For further information, please contact:

The UNITE Group plc Mark Allan, Chief Executive Joe Lister, Chief Financial Officer Caroline Mallin, Director of Communications	Tel: [phone]
Financial Dynamics Stephanie Highett  Dido Laurimore  Rachel Drysdale 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 three core areas; 

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

• Professional property management: UNITE will be home to some 38,500 students during the 2009/10 academic year and has consistently proven high occupancy levels across its portfolio.

• 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 the 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 Group is listed on the London Stock Exchange (UTG).

The UNITE UK Student Accommodation Fund

UNITE Group 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 aggregate size of the Fund's portfolio following the acquisition in December 2009 is circa £1 billion with 19,468 bed spaces in 58 properties across 18 UK markets.  Following the equity raise in 2009 the number of unitholders in the Fund is now over 100.

www.unite-group.co.uk

www.unite-students.com

 

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