Unite Group PLC USAF and LSAV Valuation Update (7258T)
10 January 2017 - 6:00PM
UK Regulatory
TIDMUTG
RNS Number : 7258T
Unite Group PLC
10 January 2017
Press release
10 January 2017
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 31 December
2016.
At 31 December 2016, USAF's property portfolio was independently
valued at GBP2,288 million, representing a like-for-like increase
of 0.6% during the quarter and 5% over the full year. The portfolio
comprises 27,441 beds in 76 properties across 24 University towns
and cities in the UK.
LSAV's property portfolio was independently valued at GBP1,009
million, up 0.5% on a like-for-like basis in the quarter and 4%
over the full year. LSAV's portfolio 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 in the
quarter with 9 basis points of yield compression across the year.
The USAF portfolio is valued at an average yield of 5.6% and LSAV's
portfolio at 4.9%.
As a result of the strong total return in USAF during 2016,
Unite expects to earn a net performance fee in the region of GBP6
million. The fee will be paid in units in the first quarter of
2017.
Joe Lister, Unite Students Chief Financial Officer, commented:
"Demand for our high quality, well located student accommodation
and customer offering remained strong throughout 2016. The
continued high occupancy and lettings performance, as well as the
limited yield compression, contributed to the strong performances
of both USAF and LSAV. Bookings for the 2017/18 academic year,
which opened towards the end of 2016, have also started well."
ENDS
For further information, please contact:
Unite Students
Joe Lister, Chief Financial Officer Tel: +44 11
Caroline Hall, PA to Chief Financial 7302 7005
Officer
Bell Pottinger
Victoria Geoghegan Tel: +44 20
Nick Lambert 3772 2562
Elizabeth Snow
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 GBP2 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.
For more information you can visit Unite's corporate website
http://www.unite-group.co.uk/, the student site
http://www.unite-students.com or the Unite Foundation
http://www.unitefoundation.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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