Outcome of USAF Fund Raising – 25 March 2014

The UNITE Student Accommodation Fund (“USAF”, “the Fund”) successfully completed a fundraising on 28th March 2014, raising £106 million of new equity. £55 million was invested by UNITE, of which approximately £50 million represented the planned deployment of proceeds from its own recent equity fundraising with the remainder funded from existing cash resources. A further £51 million was invested by a combination of other existing and new institutional investors. USAF will initially use the funds to reduce leverage but the capital raised also provides capacity for the Fund to consider acquisitions that would grow and enhance its portfolio.

Following the capital raise, USAF’s loan-to-value ratio falls to 35% and UNITE’s stake increases to approximately 21%.

Commenting on the transaction, Joe Lister, UNITE’s Chief Financial Officer, said:

“We are very pleased with the successful conclusion to USAF’s capital raising and are delighted to be increasing our own stake in the Fund to 21%, demonstrating our confidence in the longer term prospects for the Fund’s high quality portfolio. The positive response of existing and new institutional investors shows the increasing appeal of student accommodation as an investment asset class and USAF’s position as the pre-eminent fund in the sector.

“The Fund will initially use the proceeds to reduce leverage but will also be considering acquisition opportunities.”