18th Nov 2013 08:28
LONDON (Alliance News) - Student accommodation developer Unite Group PLC Monday said occupancy across its portfolio stood at 98% for the 2013/14 academic year as its remains on track to post 3% rental growth for the full year.
In an interim management statement for the period July 1 to November 15, the company said the business had performed strongly in all its key markets although there had been "continued disruption in pockets of the London market as new competing supply is absorbed."
Unite said it expects issues in London to stabilise over the next few years as demand grows and the pace of new supply slows.
Less than 10% of the company's total investment portfolio is affected by this disruption, it added.
Unite said the development of its scheduled 2014 completions is progressing in line with expectations, while targeted 2015 completions will commence on site soon.
The group said progress also has been made regarding its LSAV London development pipeline, in which Unite has a 50% stake. Most recently, the joint venture secured a new site and outline planning consent for around 700 beds in Wembley Park, targeted for 2016 delivery.
Overall, Unite said the investment market for student accommodations assets continues to "mature" as it concluded around GBP1.65 billion of transactions in the year to date. This includes significant sales of former Opal assets, a predominantly regional direct-let portfolio being sold in parts out of administration.
Financially, Unite said a convertible bond issue last month raised GBP90 million, while a Unite UK Student Accommodation Fund bond issue completed in November raised GBP185 million.
The Unite UK Student Accommodation Fund is an open-ended non-listed real estate fund that focuses on acquiring and operating high-quality student accommodation in the UK.
Unite Group shares were up trading up 0.36 pence early Monday at 402.06 pence.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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