10 October 2016
THE UNITE GROUP PLC
("Unite Students", "Unite", the "Group", or the "Company")
QUARTERLY VALUATION UPDATE FOR THE UNITE UK STUDENT ACCOMMODATION FUND AND THE LONDON STUDENT ACCOMMODATION JOINT VENTURE
Unite Students, the UK's leading developer and manager of student accommodation, announces the quarterly property valuation of the Unite UK Student Accommodation Fund ("USAF") and the London Student Accommodation Joint Venture ("LSAV") as at 30 September 2016.
At 30 September 2016, USAF's property portfolio was independently valued at £2,264 million representing a like-for-like increase of 1.0% during the quarter. The portfolio comprises 27,441 beds in 76 properties across 24 University towns and cities in the UK following the acquisition of Gosford Gate in Coventry and Greetham Street in Portsmouth in September from Unite under the pipeline agreement.
LSAV's investment portfolio was independently valued at £995 million, up 0.5% on a like-for-like basis in the quarter. Following the practical completion of the 862 bed Stapleton House development in Islington and the 699 bed Olympic Way development in Wembley, LSAV's investment portfolio now comprises 6,197 beds across 14 properties in London and three properties in Edinburgh.
The increase in like-for-like valuations is driven by rental growth in the quarter. Valuation yields have remained stable and the USAF portfolio is now valued at an average yield of 5.6% and LSAV's portfolio at 4.9%.
As we enter the final stages of the lettings cycle for the 2016/17 academic year, Unite Students has achieved a strong lettings performance across its whole portfolio with 97% of bed spaces let at rental levels 3.8% higher than 2015/16 on a like-for-like basis.
Joe Lister, Unite Students Chief Financial Officer, commented: "The lettings performance for the 2016/17 academic year has again been strong, with occupancy currently at 97% and rental growth of 3.8%. This performance is driven by our continued focus on University relationships and the impact of our proprietary operating system, PRISM, on customer service and rental performance."
For further information, please contact:
Joe Lister, Chief Financial Officer
Felicity Cowie, Senior Public & Corporate Communications Manager
Tel: +44 117 302 7240
Tel: +44 20 3772 2562
Notes to editors:
About Unite Students
Unite Students is the UK's largest and most established manager and developer of purpose-built student accommodation. It provides a home for around 50,000 students, in more than 140 properties, across 28 leading university cities in England and Scotland. Unite works in partnership with more than 60 Higher Education institutions and also lets rooms directly to students.
Unite's purpose is to provide a home to its culturally-diverse customers, offering them a strong foundation for academic and personal success. The accommodation is high quality, safe and close to university campuses, transport links and local amenities. Students live in ensuite study bedrooms with rents covering all bills, insurance, 24-hour security, fortnightly cleaning of communal kitchens and bathrooms and high speed Wi-Fi.
Founded in 1991 in Bristol, The Unite Group plc is a FTSE250 company, listed on the London Stock Exchange, employing more than 1,250 people. It pursues a sustainable growth strategy, designed to make the most of the resilient nature of the student accommodation sector. Unite is focused on maintaining its position as the leading provider of student accommodation in the UK, by having the best brand, operating the highest quality portfolio and maintaining the strongest capital structure in the sector. This is achieved with consistent investment in, and improvement to, the operating platform; highly selective development activity and asset management initiatives.
Unite is invested in and operates a small number of specialist funds and joint ventures with institutional investment partners, the largest of which is the £2 billion Unite UK Student Accommodation Fund (USAF).
Unite is the founder and major donor of the Unite Foundation. Since 2012 this has provided free student accommodation and financial support to 160 young people in the UK who lack family support.
This information is provided by RNS