TIDMUTG
RNS Number : 0535P
Unite Group PLC
08 October 2019
Press release
8 October 2019
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
The Unite Group plc, one of the UK's leading owners, managers
and developers 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 2019.
At 30 September 2019, USAF's property portfolio was
independently valued at GBP2,445 million, representing a
like-for-like increase of 0.6% during the quarter. The portfolio
comprises 25,177 beds in 68 properties across 21 University towns
and cities in the UK.
LSAV's investment portfolio was independently valued at GBP1,300
million, up 1.9% in the quarter on a like-for-like basis. LSAV's
investment portfolio comprises 8,354 beds across 12 properties in
London and Aston Student Village in Birmingham.
The valuation increase is predominantly driven by rental growth
with LSAV also benefiting from a one-time reversionary uplift at
one of its larger properties. Overall the USAF portfolio is valued
at an average yield of 5.2% whilst the LSAV portfolio is valued at
an average yield of 4.5%.
As we enter the final stages of the lettings cycle for the
2019/20 academic year, Unite Students has achieved a strong
lettings performance across its whole portfolio with 98% of bed
spaces let (2018/19: 98%). This supports annual rental growth of
3.0-3.5%, through a combination of value-driven price increases and
improved utilisation.
Joe Lister, Unite Students Chief Financial Officer,
commented:
"We have delivered another strong reservations performance for
2019/20 across our whole portfolio, demonstrating the continued
demand for our rooms and services. The performance is driven by our
focus on long-term partnerships with high-quality universities and
our investment in university towns and cities where demand for
purpose-built student accommodation is strong."
ENDS
For further information, please contact:
Unite Students
Joe Lister / Paul Richmond Tel: +44 117 302 7005
Powerscourt
Justin Griffiths / Victoria Heslop Tel: +44 20 7250 1446
About Unite Students
Unite Students is one of the UK's largest owners, managers and
developers of purpose-built student accommodation serving the
country's world-leading higher education sector. We currently
provide homes for over 50,000 students in circa 130 properties
across 22 leading university towns and cities in England and
Scotland. Unite also has a strong development pipeline, which will
deliver around 5,000 beds in the next three years.
Our 1,400 people are driven by a common purpose: to provide the
students who live with us a 'Home for Success' and to be the most
trusted brand in the sector. We do this through quality service,
quality people and quality properties, all designed on the basis of
an excellent insight into students' needs and preferences.
Unite's accommodation is high quality, safe and secure, and
located where students want to live. Students live predominantly in
en-suite study bedrooms with rents covering all bills, insurance,
24-hour security, fortnightly cleaning services and high-speed
Wi-Fi. MyUnite, our mobile app, provides practical support such as
instant messaging and maintenance requests.
Our commitment to customer service is powered by an innovative,
in-house operating platform. It provides a wide range of benefits
to our students, such as an optimised online booking process, as
well as providing us with a unique ability to drive value from our
portfolio through scale efficiencies and revenue management.
Alongside delivering quality service, our other strategic
priority is delivering growing and sustainable earnings,
underpinned by a strong capital structure. A key part of this
strategy is growing the number of beds let through partnerships
with mid and high tariff universities which are experiencing record
levels of student demand. We currently partner with 60 higher
education institutions, guaranteeing that approximately 60% of our
rooms are let under 'nomination agreements' providing high
visibility of forward occupancy and rental growth.
Unite is invested in and operates two specialist funds and joint
ventures with institutional investment partners: the GBP2 billion
Unite UK Student Accommodation Fund (USAF), and the GBP1 billion
London Student Accommodation Vehicle (LSAV).
Unite is the founder of and major donor to the Unite Foundation,
a charitable trust established to support talented students facing
challenging financial circumstances through the provision of free
accommodation annual scholarships. The Foundation has so far
provided scholarships for 250 young people working in close
collaboration with 29 partner universities.
Founded in 1991 in Bristol, Unite Group is an award-winning Real
Estate Investment Trust (REIT), listed on the London Stock Exchange
and a member of the FTSE 250 Index.
For more information, please visit Unite's corporate website
www.unite-group.co.uk, the student site www.unite-students.com or
the Unite Foundation www.unitefoundation.co.uk
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END
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