USAF Valuation

RNS Number : 9929T

Unite Group PLC

07 October 2010

 



7 October 2010

THE UNITE GROUP PLC

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

30 SEPTEMBER 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") of the UNITE UK Student Accommodation Fund (the "Fund") as at 30 September 2010.

Estimated NAV was £0.799 per unit reflecting an increase of 0.1% during the third quarter of 2010 (30 June 2010: £0.798 per unit).

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

Effect on Estimated NAV per unit:
Movement in property values	0.9%
Movement in swap values	-0.4%
Acquisition costs Other factors	-0.2% -0.2%
Increase in Estimated NAV per unit	0.1%

In arriving at the value of the Fund's units, its property portfolio was independently valued at £1.081 billion. The value of the assets held throughout the quarter increased by 0.5% on a like for like basis compared to 30 June 2010. The growth in value was driven by 0.9% rental growth offset by the capital costs associated with the refurbishment of three assets (778 beds) during the quarter.

In addition to this growth, the Fund acquired a property in Newcastle for £25m during the period, accounting for the remaining uplift in the portfolio value. No assets were sold during the period. 

The value of the units was also affected by a further negative movement in the market value of the Fund's interest rate swaps. The market value adjustment now stands at £49.9m (8.6% of Fund NAV as at 30 September 2010).

The Fund's portfolio has continued to deliver strong reservations, with 97% of bed spaces let for the 2010/11 academic year as at 4 October 2010 (2009/10: 97%).  Quarterly rental growth of 0.9% was booked in the portfolio valuations, representing the balance of 2010/11 academic year rental growth not recognised in previous quarters.

Valuation yields were stable at an average of 6.70% across the portfolio (30 June 2010: 6.71%, 31 December 2009: 6.84%).

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

"The Fund has delivered a robust performance in the third quarter of 2010. Further quarterly rental growth combined with stable valuation yields resulted in the value of the assets held throughout the quarter increasing by 0.5% on a like for like basis compared to 30 June 2010. We are delighted to report another strong year of lettings with 97% of the Fund's portfolio let for the 2010/11 academic 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	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 38,300 students and has consistently achieved 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 holding a 16.3% stake.  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 Fund's portfolio comprises 19,994 bed spaces in 59 properties across 19 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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