30th Apr 2014 13:36
LONDON (Alliance News) - Student accommodation provider Unite Group PLC Wednesday reported a strong performance across the business in 2014, with 73% of its rooms currently let for the 2014/15 academic year compared with 71% at the end of April 2013, as it outlined plans to invest around GBP40 million upgrading its sites.
In an interim management statement for the period January 1 to date, the firm said its development pipeline is progressing well with planning consents secured for two joint venture developments in London and good progress being made with its regional pipeline.
During the period, the company said it exchanged contracts to sell its Oasis Capital Bank Joint Venture portfolio for GBP174 million, with completion scheduled to take before the end of June, with the net proceeds to be used to increase the group investment in UCC.
Oasis Capital Bank Joint Venture was established in August 2009 to develop three student accommodation properties in London.
UCC is a joint venture with GIC Real Estate, the real estate investment arm of the Government of Singapore Investment Corporation.
Overall, Unite said occupancy across its portfolio remains at 98% for the current academic year and customer satisfaction has continued to increase year-on-year in response to a series of service enhancements.
Looking ahead, the company said it plans to invest around GBP40 million in developing and strengthening its brand and operating platform. It will use the money to upgrade its sites in a number of ways including what it called "reinvigorating" reception and common areas to promote a greater sense of community.
"With the business performing strongly and a supportive market environment, we believe this is the right time to invest in our brand for the long term, strengthening our competitive advantage further," Chief Executive Mark Allan said in a statement.
"With the support of our co-investment partners we now have a substantial targeted investment programme for the next two years which we believe will cement Unite's position as the most trusted brand in the sector," he added.
The stock was trading at 424.90 pence Wednesday afternoon, down 1.80 pence or 0.4%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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