1st May 2007 07:02
Unite Group PLC01 May 2007 1 MAY 2007 The UNITE Group plc ("UNITE" / "Group") UNITE CONCLUDES SECOND FUND RAISING IN £1 BILLION UK STUDENT ACCOMMODATION FUND The UNITE Group plc ("UNITE"), the UK's leading commercial provider of studentaccommodation, is pleased to announce the successful conclusion of the secondclosing of the UNITE UK Student Accommodation Fund ("USAF"/ the "Fund"). UNITEhas secured the maximum level of third party equity ensuring the Fund is fullycapitalised to reach its £1 billion investment target. This additional fund raising, which was oversubscribed, was effected through theacquisition of units from UNITE at a 7.5% premium to initial issue price, aswell as through securing commitments to subscribe for additional equity. Inline with the Company's previously stated strategy, UNITE's stake in the Fundhas now reduced to 29.3%, representing a co-investment equity stake of £72.7million. The total amount of equity commitments to the Fund received from leading thirdparty institutional investors now totals £370 million, an increase of £72.5million above the level of commitments in place at the time of the firstclosing, announced in December 2006. Approximately 48 per cent of thesecommitments have been drawn down to fund the acquisition of the £515 million ofproperties contributed to the Fund by UNITE as a seed portfolio. The remaining52 per cent of equity commitments will be available to fund the purchase offuture assets. USAF is structured as an open-ended property fund which focuses on owning,acquiring and managing UK direct let student accommodation. The Fund is ontarget to own student accommodation property worth over £1 billion. It hasexclusive rights over a significant part of UNITE's extensive development andinvestment programme. Commenting, Tony Harris, UNITE's Chief Financial Officer, said: "Since we launched the Fund in December 2006 it has attracted strong interestand demand from leading institutional investors, a number of whom participatedin both the first and second closing. For investors keen to secure exposure to anewly established and growing alternative asset class, USAF offers compellingaccess to UNITE's proven track record for sourcing and delivering new propertiesand managing them to extract superior returns. For UNITE, the Fund provides anew, valuable revenue stream in the form of management fees from the Fund." ENDS For further details please contact: Enquiries: UNITETony Harris, Chief Financial Officer 0117 302 7000Tabitha Aldrich-Smith 0117 302 7000 Financial DynamicsStephanie Highett / Dido Laurimore 020 7831 3113 Notes to editors: • USAF was launched on 15 December 2006 and UNITE acts as its manager as well as retaining a co-investment stake. • The Fund's Estimated Net Asset Value at 31 March 2007 was £1.011 per unit (31 December 2006: £0.945 per unit), representing an increase of 7.0% over the quarter. In arriving at a value for units in the Fund, the Fund's property portfolio was independently valued at £516.8 million as at 31 March 2007, representing an underlying increase in value over the quarter of 2.4%. • UNITE is the UK's leading student hospitality company. Listed in the FTSE 250 index of the London Stock Exchange and managing a property portfolio of £1.6 billion located across the UK, the Group focuses on the provision and management of high quality, well-located student accommodation and hospitality services in strong higher education markets. • UNITE delivers the real student experience, whilst at the same time helping to regenerate cities as part of the community and contributing to the improvement of the country's housing. It undertakes the planning, development and management of sites, often working closely with the universities and colleges, to deliver accommodation for students across all ages and nationalities. UNITE developments typically show high occupancy levels and robust rental growth as demand continues to rise for places in UK Higher Education and for safe, high quality accommodation for students. Further information on UNITE is available at www.unite-group.co.uk This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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