USAF Valuation

RNS Number : 6976T

Unite Group PLC

08 October 2014

 

PRESS RELEASE 8 October  2014

THE UNITE GROUP PLC

("Unite", "Unite Students", the "Group", or the "Company")

VALUATION OF THE UNITE UK STUDENT ACCOMMODATION FUND

AS AT 30 SEPTEMBER 2014

The Unite Group plc, the UK's leading manager and developer of student accommodation, announces the estimated net asset value* ("NAV") of the Unite UK Student Accommodation Fund (the "Fund", "USAF") as at 30 September 2014.

At the end of the third quarter, NAV was £903.8 million, reflecting an underlying increase in value during the third quarter of 2.1% (5.1% in the nine months to September) together with the impact of £17.8 million of new equity issued during the period.

In arriving at the value of the Fund, USAF's property portfolio, comprising 24,955 beds in 69 properties across 22 UK towns and cities, was independently valued at £1,561 million. The movement during the quarter represents a like for like increase of 1.7% in the value of the portfolio. In the nine months to 30 September, the value of the portfolio has increased by 3.2% on a like for like basis with rental growth contributing 2.1% of the movement and yield compression 1.1%. The overall portfolio is valued at an average yield of 6.53% at 30 September 2014 representing four basis points of yield compression on a like for like basis during the quarter.

In July, USAF completed the acquisition of a 2,904 bed student accommodation portfolio from the Cordea Savills Student Hall Fund for £137 million, and separately an asset comprising 378 beds in Huddersfield from Unite for £20 million in September. Unite received consideration in the form of £11 million in cash and the remainder in USAF units increasing its stake in the Fund to 21.6% from 20.7%.

The lettings cycle for the 2014/15 academic year is now largely complete and the Fund's portfolio has achieved high occupancy levels, with 98% of bed spaces let for the academic year.

Commenting on the Fund's valuation, Joe Lister, Unite Student's Chief Financial Officer, said: "USAF has delivered a further robust performance in the third quarter of 2014 and has deployed the capital it raised earlier this year through the acquisition of an additional 3,282 beds which complement and enhance the portfolio. We are delighted to report a strong lettings performance with 98% of the Fund's portfolio occupied for the 2014/15 academic year."

ENDS

For further information, please contact:

The Unite Group plc Joe Lister, Chief Financial Officer Rebecca Murch	Tel: [phone] Tel: [phone]
Bell Pottinger Victoria Geoghegan Nick Lambert Elizabeth Snow	Tel: [phone]

About Unite Students

Unite Students is the UK's leading manager and developer of student accommodation. We provide a home for over 43,000 students in 130 purpose built properties across 23 of the UK's strongest university towns and cities. We have over 1,000 employees and work in partnership with over 50 higher education providers, as well as renting rooms directly to students.

Our culturally-diverse customers are at the heart of our business and we aim to provide a home for students that supports their success, whether defined as academic achievement, personal growth or employability. Our properties provide high quality, well-located, safe accommodation that is close to university campuses, transport and local amenities. Our rent includes a study bedroom, all bills, insurance, 24-hour security and high speed Wi-Fi throughout our buildings.

Founded in 1991, Unite Group is a FTSE 250 company listed on the London Stock Exchange. We are pursuing a sustainable growth strategy designed to make the most of the resilient nature of the student accommodation sector. We aim to maintain the strongest brand in the sector and operate the highest quality portfolio through consistent investment in and improvement to our operating platform, highly selective development activity, asset management initiatives and portfolio recycling.

In addition to our wholly owned properties, we are also invested in and operate a small number of specialist funds and joint ventures with institutional investment partners, the largest of which is the £1.5 billion Unite UK Student Accommodation Fund (USAF).

The Group's charitable trust, the Unite Foundation, supports widening access to higher education, integrating students into the community and employability. It provides scholarships for disadvantaged students at seven universities and volunteering opportunities for our students and employees through partner organisations.

For more information visit our corporate website: www.unite-group.co.uk or www.unite-students.com.

 

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