Last checked at 7 Oct 2013 07:00
7 October 2013 | |
THE UNITE GROUP PLC
("UNITE", the "Group", or the "Company")
VALUATION OF
THE UNITE UK STUDENT ACCOMMODATION FUND
AS AT 30 SEPTEMBER 2013
Strong reservations performance underpins NAV and continued rental growth
The UNITE Group plc, the UK's leading developer and manager of student accommodation, today reports the Estimated Net Asset Value* ("NAV") of the UNITE UK Student Accommodation Fund (the "Fund", "USAF").
The NAV as at 30 September 2013 was £713.3m (£0.952 per unit), reflecting an increase in total NAV of 1.1% during the third quarter of 2013 (30 June 2013: £705.7m, £0.944 per unit).
The principal components of the movement in NAV were as follows:
Effect on NAV: | Q3 2013
|
Movement in property values | 1.0% |
Portfolio-wide wi-fi installation costs | -0.3% |
Movement in swap values | 0.2% |
Partial Landsbanki recovery | 0.2% |
Increase in NAV | 1.1% |
Increase in underlying property portfolio value | 1.0% |
In arriving at the value of the Fund, its property portfolio, which comprises 21,673 beds in 59 properties across 19 UK towns and cities, was independently valued at £1,340m. The value of the portfolio increased by a total of 1.0% since 30 June 2013 as a result of rental growth and asset management activity. The portfolio has increased on a like for like basis by 2.1% in the year to date. Valuation yields again remained stable at 6.67%. The lettings cycle for the 2013/14 academic year is now largely complete and USAF's occupancy stands at 98%.
In September, the Fund received a further £1.5m of the £30m deposit it placed with Landsbanki in 2008. The Fund provided for the full amount of the deposit in 2008 and, therefore, the recovery added to the growth in NAV by 0.2% in the quarter. The total amount recovered to date is now £15.8m, 53% of the original deposit amount.
Commenting on the Fund's quarterly valuation, Joe Lister, UNITE's Chief Financial Officer, said:
"We are delighted to report a strong lettings performance with 98% of the Fund's portfolio occupied for the 2013/14 academic year. During the quarter, the Fund has achieved continued rental growth and completed asset management activity, combining to increase its portfolio value by 2.1% in the year to date."
ENDS
For further information, please contact:
The UNITE Group plc Joe Lister, Chief Financial Officer Sally Quigg, Head of Corporate Communications
| Tel: 0117 302 7004
Tel: 0117 302 7070 |
Bell Pottinger Victoria Geoghegan Nick Lambert Elizabeth Snow
| Tel: 020 7861 3925 |
About The UNITE Group
UNITE is the UK's leading developer and manager of student accommodation, with a business model that focuses on two core areas:
1. Development and Asset Management: UNITE undertakes the acquisition, planning and development of purpose-built student accommodation in the UK. Through the continuous assessment of quality and location of its investment portfolio, UNITE is well positioned to deliver value-adding strategies to those assets where further opportunities are identified. Working on behalf of its partners, UNITE acts as Fund Manager for the UNITE UK Student Accommodation Fund in which it owns a 16.3% share. UNITE also manages a number of Joint Venture partnerships.
2. Professional property management: UNITE is home to 42,000 students in over 120 properties across 23 of the UK's strongest university cities, and has consistently proven high occupancy levels across its portfolio.
UNITE works closely with higher education institutions in order to deliver high quality, well-located student accommodation at affordable prices in strong higher education markets. In May 2013 UNITE was awarded Student Accommodation Provider of the Year at Property Week's RESI Awards. UNITE has also been recognised by the Global Real Estate Sustainability Benchmark (GRESB) as a regional sector leader for sustainability.
Founded in 1991, UNITE is a FTSE 250 company listed on the London Stock Exchange (UTG). For more information, please visit www.unite-group.co.uk or www.unite-students.com