Last checked at 7 Oct 2009 07:00
7 October 2009
The UNITE Group plc ("UNITE" / "Group")
VALUATION OF THE UNITE UK STUDENT ACCOMMODATION FUND AT 30 SEPTEMBER 2009
The UNITE Group plc, the UK's leading developer and manager of student accommodation, today reports the Estimated Net Asset Value at 30 September 2009 of the UNITE UK Student Accommodation Fund ("USAF"/ the "Fund").
The Fund's Estimated Net Asset Value at 30 September 2009 was £0.715 per unit (30 June 2009: £0.712 per unit, 31 December 2008: £0.753 per unit) reflecting an increase of 0.4% compared to 30 June 2009.
In arriving at the value of the Fund's units, its property portfolio was independently valued at £877 million, reflecting an increase of 1.0% in the quarter (30 June 2009: £869 million).
The components of the movement in the Estimated Net Asset Value of the units were as follows:
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The Fund's portfolio has continued to deliver strong reservations, with 97% of bed spaces now occupied for the 2009/10 academic year (2008/09: 99%) and like-for-like rental growth of 10%. Quarterly rental growth of 2.3% was booked in the property portfolio valuations representing the balance of 2009/10 academic year rental growth not recognised in previous quarters. This was partially offset by yield expansion averaging 9 bps across the portfolio.
Commenting on the Fund's valuation, Joe Lister, UNITE's Chief Financial Officer, said:
"The Fund's performance in the third quarter of 2009 demonstrates the continued resilience of student accommodation and its ability to generate consistent occupational performance and rental growth despite challenging economic conditions. Ongoing rental growth has been and will continue to be the key driver of the strong relative performance of the Fund's property portfolio and we are delighted to report another excellent lettings performance with 97% of the portfolio occupied for the 2009/10 academic year.
ENDS
For further details please contact:
| The UNITE Group plc Joe Lister Mark Allan | Tel: 0117 302 7004 |
| Financial Dynamics Stephanie Highett / Dido Laurimore / Rachel Drysdale / Laurence Jones | Tel: 020 7831 3113 |
About UNITE Group
UNITE Group is the UK's leading developer and manager of student accommodation, with a business model that focuses on three core areas;
Development: UNITE undertakes the acquisition, planning and development of purpose-built student accommodation in the UK.
Professional property management: UNITE is home to some 38,500 students and has consistently proven high occupancy levels across its portfolio.
Co-investing asset management: Working on behalf of its partners, UNITE acts as Fund Manager for the UNITE UK Student Accommodation Fund in addition to being 18.6% stakeholders. UNITE also manages a number of Joint Venture partnerships.
UNITE works closely with the universities and colleges, in order to deliver high quality, well-located student accommodation at affordable prices in strong higher education markets.
Founded in 1991, UNITE Group is listed on the London Stock Exchange (UTG).
UNITE UK Student Accommodation Fund ("USAF" / the "Fund")
UNITE Group established the UNITE UK Student Accommodation Fund at the end of 2006. The Fund was launched with the following principal objectives:
to release capital for UNITE that is tied up in mature, stabilised investment assets for investment into higher added value development activity;
to diversify UNITE's sources of income by providing a new revenue stream arising from management fees from the Fund; and
to provide financial returns to investors in the Fund.
The Fund helped transform UNITE's business model to that of a developer of new purpose-built student accommodation and manager of funds which own student accommodation properties operated by UNITE and in which the Company has a significant minority stake.
Websites:
Investors and corporate: www.unite-group.co.uk
Students: www.unite-students.com