9th Jan 2020 08:54
(Alliance News) - Student accommodation provider Unite Group PLC on Thursday said its UK Student Accommodation Fund and its London Student Accommodation joint venture both reported valuation growth for 2019.
FTSE 250-listed Unite said the UK Student Accommodation Fund was valued at GBP2.85 billion as at December 31, up 0.8% over the three-month period, and by 3.1% for the year.
Meanwhile, the London Student Accommodation joint-venture portfolio was valued at GBP1.34 billion at the end of 2019, up 2.7% on a like-for-like basis and up 7.4% for the year.
The rise in value was attributed to rental growth and yield compression during the period.
Unite posted a strong start to the 2020/21 sales cycle, it said, with 68% of rooms sold for the next academic year.
"The USAF and LSAV portfolios have both performed well in 2019 with property valuation growth of 3.1% and 7.4% respectively. Returns have been delivered through high levels of occupancy, rental growth and have been enhanced by yield compression in London," said Chief Financial Officer Joe Lister.
"Bookings for the 2020/21 academic year have started strongly with 68% of rooms already sold, ahead of the previous year, reflecting the continued strong demand for places at the high-quality universities with which we partner," Lister said.
Shares in Unite - which is based in Bristol - were down 1.0% at 1,233.00 pence on Thursday in London.
By Dayo Laniyan; [email protected]
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