(Alliance News) - Student accommodation provider Unite Group PLC on Monday said its tenants will be able to apply for a rental discount of 50% for a total of four weeks, after England entered its third national lockdown last week.
In addition, students will be able to get a four-week complimentary extension on their tenancy agreements, Unite said.
Teaching at universities across the UK has been hit by Covid-19, with some even being forced to provide just online learning only.
"Students will be able to apply for a discount of 50% of their rent for a total of 4 weeks and, in addition, will be given a 4-week complimentary extension of their tenancy agreement at the end of the academic year to extend their stay into the summer. The rental discount and tenancy extension will be available to all students checked-in but not living in their accommodation between 18 January and 14 February," Unite said.
"The government's latest guidance recommends that most students start their second term online until at least mid-February. There are however exceptions for certain practical courses, such as medicine, veterinary science, teacher training and social work."
Unite's EPRA earnings will take a hit of up to GBP8 million, or 2 pence per share, as a result of the rent reduction and tenancy extension.
The company said the valuation of the Unite UK Student Accommodation Fund slipped 0.3% quarter-on-quarter and 1.8% annually to GBP2.80 billion on December 31.
At the London Student Accommodation Joint Venture, the valuation fell 0.1% quarterly and 0.9% annually to GBP1.32 billion. The LSAV is jointly held by Unite and the Singapore government's sovereign wealth fund GIC Private Ltd.
Unite added: "The Q4 valuations reflect the removal of the temporary reduction in stamp duty for residential properties, which is due to come to an end on 31 March 2021. Removing this impact, valuations were up modestly over the quarter for both USAF and LSAV, reflecting a sales performance for 2020/21 in line with the valuers' assumptions."
Unite shares were 1.8% lower at 991.00 pence each in London on Monday morning.
By Eric Cunha; ericcunha@alliancenews.com
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Unite (UTG)