8th Oct 2007 07:00
Unite Group PLC08 October 2007 8 October 2007 QUARTERLY VALUATION OF THE UNITE UK STUDENT ACCOMMODATION FUND - 2.5% RISE IN PROPERTY VALUES The UNITE Group plc ('UNITE') today reports the Estimated Net Asset Value* as at30 September 2007 of the UNITE UK Student Accommodation Fund (the 'Fund'). TheFund, which is invested solely in direct let student accommodation, was launchedon 15 December 2006 and UNITE acts as its manager as well as retaining aco-investment stake. The Fund's Estimated Net Asset Value as at 30 September 2007 was £1.072 per unit(30 June 2007; £1.054, 31 December 2006; £0.945 per unit), representing anincrease of 1.6% over the quarter and 13.4% over the year to date. In arrivingat the value for units in the Fund, its property portfolio was independentlyvalued at £544.3 million, representing an underlying increase in value over thequarter of 2.5% (6.5% year to date). This increase in property values over thequarter was predominantly due to rental growth, although an element wasattributable to a 6 basis point reduction in the average stabilised yield of theportfolio, which now stands at 5.65%. The remainder of the change in EstimatedNet Asset Value over the period reflects a negative movement in the market valueof interest rate swaps held by the Fund and an allowance for performance feespayable to UNITE. Since 30 September, and as reported on 4 October, the Fund has acquired afurther £81.8 million of properties from UNITE or entities in which UNITE has asubstantial stake. These assets were acquired at open market value, reflectingan average stabilised yield of 5.70%, and are not included in the abovevaluation. Note: *Estimated Net Asset Value excludes any non-capital profits accruing during thequarter. ENDS For further details please contact: Tabitha Aldrich-Smith Telephone: 0117 302 7018UNITE Group plc Email: [email protected] Stephanie Highett/Dido Laurimore/Lauren Mills Telephone: 020 7831 3113Financial Dynamics Email: [email protected] / [email protected] / [email protected] About UNITE • UNITE is the UK's leading provider of student accommodation • UNITE currently operates accommodation for 38,000 students in 135 properties, geographically spread in key university markets across England, Wales and Scotland • The value of UNITE's completed property portfolio is estimated to be worth £1.6 billion • UNITE has a dedicated website for students who are looking to find accommodation at www.unite-students.com • UNITE is a founding member of the ANUK Code of Standards for Larger Developments, all properties are signed up to this code ensuring high standards of accommodation, service and security. UNITE UK Student Accommodation Fund At the end of 2006, UNITE established the £1 billion UNITE UK StudentAccommodation Fund and sold an initial portfolio to it for £515 million. Theprincipal objectives of this transaction were: • to release capital that was tied up in mature, stabilised investment assets for investment into higher added value development activity; • to provide UNITE with more growth capital in the medium term; and • to diversify UNITE's sources of income by providing a new, valuable revenue stream arising from management fees from the Fund. The Fund helped transform UNITE's business model to that of developer of newpurpose-built student accommodation and manager of funds which own studentaccommodation properties operated by UNITE and in which the Group has asignificant minority stake. UNITE Student Accommodation, designed for students • Dedicated on-site hospitality management team offering 24/7 support to customers. • A wide choice of rooms available from single studio flats for students who want to live on their own, or, typically 5/6 bedroom flats to share with friends. • Common room facilities, including Sky TV and pool tables, are often used for social events. A number of properties offer gyms exclusively for residents' use. • Rents and availability vary in each town/city and a variety of payment plans are in place to suit students. UNITE focuses on the provision and management of high quality, well-locatedstudent accommodation and hospitality services at affordable prices in stronghigher education markets. UNITE undertakes the planning work, development andmanagement of sites, often working closely with the Universities and Colleges todeliver accommodation for students across all ages and nationalities. UNITEdevelopments typically show high occupancy levels as demand continues to risefor places on UK Higher Education courses and for high-quality, safeaccommodation. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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