USAF Valuation

RNS Number : 0322P

Unite Group PLC

08 July 2010

 



8 July 2010

THE UNITE GROUP PLC

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

30 JUNE 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 June 2010.

Estimated Net Asset Value was £0.798 per unit reflecting an increase of 2.6% during the second quarter of 2010 (31 March 2010: £0.778 per unit).

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

Impact on Estimated NAV per unit:
Movement in property values	3.6%
Movement in swap values	-0.8%
Other factors	-0.2%
Increase in Estimated NAV per unit	2.6%

In arriving at the value of the Fund's units, its property portfolio was independently valued at £1.044 billion. This represents a 2.0% increase compared to 31 March 2010, driven by an average yield compression of four basis points and 1.4% quarterly rental growth.  Further rental growth will be recognised in the next quarterly valuations as reservations for the forthcoming academic year progress.  Following these movements, the average yield of the Fund's portfolio stands at 6.71%.

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

"The Fund continues to deliver robust returns to its investors, driven by strong reservations and recurring rental growth.  During the second quarter of 2010, further quarterly rental growth of 1.4% combined with a modest compression in yields resulted in a 2.0% increase in the value of the Fund's property portfolio.  71% of the Fund's bed spaces are currently reserved for the forthcoming academic year, in line with the 71% achieved at the same point in 2009."

*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 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 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 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 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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