1st Apr 2015 06:56
LONDON (Alliance News) - Unite Group PLC on Wednesday reported like-for-like increases in both of its property portfolios in the first quarter of 2015.
Unite said its Unite UK Student Accommodation Fund was independently valued at GBP1.64 billion at the end of March, a like-for-like increase of 4.3% during the quarter. Its London Student Accommodation Joint Venture was valued at GBP606 million at the end of March, a 6.8% like-for-like increase in the quarter.
Unite said the quarterly increase in the valuations was driven primarily by 26 basis points 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%, it added.
"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," said Joe Lister, chief financial officer of Unite Students.
By Sam Unsted; [email protected]; @SamUAtAlliance
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