Last checked at 10 Jan 2017 07:00
Press release
10 January 2017
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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 £2,288 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 £1,009 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 £6 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 Caroline Hall, PA to Chief Financial Officer |
Tel: +44 11 7302 7005 |
Bell Pottinger Victoria Geoghegan Nick Lambert Elizabeth Snow |
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.
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.