Unite Group PLC on Tuesday reported a ‘strong start’ to the 2024/25 academic year sales cycle.

The Bristol-based student accommodation provider said that 71% of its rooms were reserved, a record, compared to 70% the prior year.

‘We have been encouraged by particularly strong demand from university partners with 4,000 extra beds reserved compared to the same stage of the 2023/24 sales cycle,’ it added.

Unite said it is confident in its target of delivering 5% rental growth in the academic year sales cycle.

It is on-site with four development schemes, to add 2,000 beds in the next two years, and said its Meridian Square project in London remains on track for delivery for 2027/28.

Further, it said that its Unite UK Student Accommodation Fund property portfolio was valued at £2.99 billion as at December 31, up 2.1% on a like-for-like basis during the quarter.

However, its London Student Accommodation Joint Venture was valued at £1.92 billion, down 0.7% on a like-for-like basis during the quarter. Unite said the fall reflected its higher London weighting, ‘where greater increases in property yields have had a more significant negative impact on valuations.’

Looking ahead, the company said: ‘We are tracking further development opportunities in London and strong regional markets at attractive returns and expect to add to our pipeline in H1 2024. We continue to recycle capital to improve our portfolio quality and provide funding for reinvestment in new growth opportunities.’

Unite shares fell 1.8% to 1,027.00 pence each on Tuesday morning in London.

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