USAF Valuation

RNS Number : 9365J

Unite Group PLC

09 April 2010

 



9 April 2010

THE UNITE GROUP PLC

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

31 MARCH 2010 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") as at 31 March 2010 of the UNITE UK Student Accommodation Fund (the "Fund").

Estimated Net Asset Value* was £0.778 per unit reflecting an increase of 2.1% during the first quarter of 2010 (31 December 2009: £0.762 per unit).

The principal components of the increase in the net asset value of the units (after the effect of gearing) were as follows:

Impact on Estimated NAV per unit:
Movement in property values	3.8%
Movement in swap values	-1.3%
Other factors	-0.4%
Increase in Estimated NAV per unit	2.1%

In arriving at the value of the Fund's units, its property portfolio was independently valued at £1.024 billion. This represents a 2% increase compared to December 2009 value, driven by an average nine basis points of yield compression and 0.8% of quarterly rental growth. Further rental growth will be recognised in the next two quarterly valuations as reservations for the forthcoming academic year progress.  Following these movements, the average initial yield of the Fund's portfolio stands at 6.75%.

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

"The Fund's positive performance in the first quarter of 2010 reflects continuing rental growth, which the Fund has delivered every quarter since its creation, combined with moderate yield compression resulting in a 2% increase in the Fund's property values. Reservations for the forthcoming academic year are 57%, broadly in line with the 59% level achieved at the same time last year."

*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;

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 38,300 students and has consistently proven high occupancy levels across its portfolio.

3.     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 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 Fund's portfolio comprises 19,468 bed spaces in 58 properties across 18 UK markets.  The number of unitholders in the Fund is over 100.

www.unite-group.co.uk

www.unite-students.com

 

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