Unite Regulatory News (UTG)

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, the UK's leading developer and manager of student accommodation, today announces the quarterly property valuation of the Unite UK Student Accommodation Fund ('USAF') and the London Student Accommodation Joint Venture ('LSAV') as at 30 June 2015.

Following the £271 million acquisition of the 2,100 bed Ahli United Bank portfolio, (which completed on 30 June), USAF's property portfolio was valued at £1,975 million at 30 June 2015. Excluding the impact of the acquisition, the portfolio has increased in value by 4.0% on a like-for-like basis during the quarter (8.5% in the six months to June). The portfolio now comprises 26,813 beds in 75 properties across 24 University towns and cities in the UK.

LSAV's portfolio was independently valued at £612 million, up 5.6% on a like-for-like basis in the quarter (12.5% in the six months to 30 June). Its portfolio comprises 3,969 beds in 12 properties across London and three properties in Edinburgh.

The increase in valuations is driven primarily by 20 basis points of yield compression in USAF on a like-for-like basis and 25 basis points of compression in LSAV in the quarter (46 and 62 basis points respectively in the six months to June). The overall USAF portfolio is now valued at an average yield of 5.9% and LSAV's portfolio at 5.3%.

The lettings performance has remained positive across Unite's entire managed portfolio, with reservations in place across 86% of the rooms at 30 June 2015, compared with 80% at the same time in 2014. The strong reservation performance is supportive of rental growth towards the upper end of our 3-4% guidance.

We continue to make good progress in line with our plans with the identification and acquisition of development sites for delivery in 2018.

Joe Lister, Unite Students Chief Financial Officer, commented: "The demand for high-quality, well-located student accommodation, together with rental growth, has resulted in an 8.5% and 12.5% like-for-like increase in the values of the USAF and LSAV property portfolios respectively during the first half of the year. The yield compression has been supported by a strong operational performance with reservations already at 86% for the forthcoming academic year."

ENDS

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About Unite Students

Unite Students is the UK's leading manager and developer of student accommodation. We provide a home for over 45,000 students in 132 purpose built properties across 27 of the UK's strongest university towns and cities. We have over 1,000 employees and work in partnership with more than 60 higher education providers, as well as renting rooms directly to students.

Our culturally-diverse customers are at the heart of our business and we aim to provide a home for students that supports their success, whether defined as academic achievement, personal growth or employability. Our properties provide high-quality, well-located, safe accommodation that is close to university campuses, transport and local amenities. Our rent includes a study bedroom, all bills, insurance, 24-hour security, fortnightly kitchen cleans and high-speed Wi-Fi throughout our buildings.

Founded in 1991, The Unite Group plc is a FTSE 250 company listed on the London Stock Exchange. We are pursuing a sustainable growth strategy designed to make the most of the resilient nature of the student accommodation sector. We aim to maintain the strongest brand in the sector and operate the highest quality portfolio through consistent investment in and improvement to our operating platform, highly selective development activity, asset management initiatives and portfolio recycling.

In addition to our wholly owned properties, we are also invested in and operate a small number of specialist funds and joint ventures with institutional investment partners, the largest of which is the £1.9 billion Unite UK Student Accommodation Fund.

The Group's charitable trust, the Unite Foundation, provides free student accommodation and a generous annual scholarship to 90 young people in the UK who aspire to a degree but face the most challenging circumstances.

For more information visit our corporate website www.unite-group.co.uk, our student site www.unite-students.com or the Unite Foundation www.unitefoundation.co.uk.