Last checked at 7 Apr 2009 07:00
Date: 7 April 2009
On behalf of: The UNITE Group plc ("UNITE")
The UNITE Group plc ("UNITE" / "Group")
31 MARCH 2009 VALUATION OF THE UNITE UK STUDENT ACCOMMODATION FUND
The UNITE Group plc, the UK's leading developer and manager of student accommodation, today reports the Estimated Net Asset Value at 31 March 2009 of the UNITE UK Student Accommodation Fund ("USAF"/ the "Fund").
The Fund's estimated Net Asset Value at 31 March 2009 was £0.684 per unit (31 December 2008: £0.753 per unit) reflecting a 9.2% reduction over the three months to 31 March 2009. The Fund's underlying property values saw a reduction of 3.2% in the quarter, significantly outperforming the wider real estate sector.
The principal components of the reduction in the estimated Net Asset Value of the units were as follows:
| Reduction in property values (post gearing) | 7.4% | |
| Movement in interest rate swaps | 1.5% | |
| Other factors | 0.3% | |
| 9.2% | ||
| Reduction in underlying gross property values | 3.2% |
In arriving at the value of the Fund's units, its property portfolio was independently valued at £869 million. This represents a decrease of 3.2% in the underlying gross property values during the first quarter driven by 29 basis points of yield expansion, partly offset by the recognition of 1.3% rental growth. The remaining rental growth for the forthcoming academic year will be recognised over the next two quarters.
Commenting on the Fund's unit valuation, Joe Lister, UNITE's Chief Financial Officer, said:
"Despite the reduction in asset valuations in the first quarter of 2009, driven by wider market movements, student accommodation continues to outperform the wider real estate sector due to its resilient rental growth and occupational performance. This is evidenced by the encouraging reservations performance so far for the coming 2009/10 academic year with 59% of USAF's bed spaces already reserved as at early April, compared to 56% at the same time last year.
With applications for the forthcoming academic year up by 7.8% year on year, and limited new supply of accommodation coming to the market in 2009, the fundamentals of our market remain strong."
ENDS
For further details please contact:
| The UNITE Group plc Mark Allan Joe Lister | Tel: 0117 302 7004 |
| Financial Dynamics Stephanie Highett / Dido Laurimore / Rachel Drysdale / Laurence Jones | Tel: 020 7831 3113 |
About The UNITE Group plc
The 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 currently home to some 36,600 students in 24 towns and cities, with 99% occupancy across its portfolio. All properties are professionally managed by UNITE.
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 a significant shareholder. UNITE also heads up a number of joint venture partnerships.
UNITE works closely with universities and colleges to deliver high quality, well-located student accommodation at affordable prices in strong higher education markets.
Founded in 1991, UNITE 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.
See our websites:
Investors and corporate: www.unite-group.co.uk
Students: www.unite-students.com
Graduates: www.livocity.co.uk