Quarterly valuation update for the Unite UK Student Accommodation Fund and the London Student Accommodation Joint Venture – 01 April 2015

The Unite Group plc, the UK’s leading developer and manager of student accommodation, today announces the quarterly property valuation of the Unite UK Student Accommodation Fund (‘USAF’) and the London Student Accommodation Joint Venture (‘LSAV’) as at 31 March 2015. 

At 31 March 2015, USAF’s property portfolio was independently valued at £1,641 million representing a like for like increase of 4.3% during the quarter. The portfolio comprises 24,820 beds in 68 properties across 22 university towns and cities. Following completion of the forward sale by Unite to LSAV of Stratford One in the quarter, LSAV’s property portfolio was independently valued at £606 million, up 6.8% on a like for like basis. Its portfolio comprises 3,969 beds in 12 properties across London and three properties in Edinburgh.

The quarterly increase in the valuations is driven primarily by 26 basis point of yield compression in USAF and 44 basis points of compression in LSAV.  The USAF portfolio is now valued at an average yield of 6.2% and the LSAV portfolio at an average of 5.5%. 

Commenting on the valuations, Joe Lister, Unite Students Chief Financial Officer, said:

“The USAF and LSAV portfolios have had a strong start to the year. The large volume of transactions in the sector is beginning to result in a significant level of yield compression and we anticipate further compression over the remainder of 2015.”