Quarterly valuation update for the Unite UK Student Accommodation Fund and the London Student Accommodation Joint Venture – 07 October 2015

The Unite Group plc, the UK’s leading developer and manager of student accommodation, announces the quarterly property valuation of the Unite UK Student Accommodation Fund (‘USAF’) and the London Student Accommodation Joint Venture (‘LSAV’) as at 30 September 2015.

At 30 September 2015, USAF’s property portfolio was independently valued at £2,017 million representing a like for like increase of 2.1% during the quarter (11.1% in the nine months to 30 September). The portfolio comprises 26,813 beds in 75 properties across 24 University towns and cities in the UK.

LSAV’s investment portfolio was independently valued at £720 million, up 2.3% on a like-for-like basis in the quarter (14.8% in the nine months to 30 September). Following the practical completion of the 759 bed Angel Lane development in Stratford in August, LSAV’s investment portfolio now comprises 4,636 beds across 12 properties in London and three properties in Edinburgh.

The increase in valuations is driven primarily by rental growth and eight basis points of yield compression in both USAF and LSAV on a like-for-like basis in the quarter (54 and 69 basis points respectively in the nine months to September). The overall USAF portfolio is now valued at an average yield of 5.8% and LSAV’s portfolio at 5.1%.

The lettings cycle for the 2015/16 academic year is now largely complete. Unite’s total portfolio of over 46,000 beds has achieved strong occupancy levels, with 99% of bed spaces let delivering rental growth of 3.8%.

Joe Lister, Unite Students Chief Financial Officer, commented:

“We are delighted to report another strong lettings performance, with 99% of our rooms now let for the current academic year. The ongoing demand for high quality, well located student accommodation has supported rental growth of 3.8% across the portfolio.”