3rd Apr 2008 07:01
Unite Group PLC03 April 2008 Date: 3 April 2008 On behalf of: The UNITE Group plc Embargoed until 0700hrs 31 MARCH 2008 VALUATION OF THE UNITE UK STUDENT ACCOMMODATION FUND The UNITE Group plc ('UNITE') today reports the Estimated Net Asset Value1 as at31 March 2008 of the UNITE UK Student Accommodation Fund (the 'Fund'). The Fund,which is invested solely in provincial direct let student accommodation, waslaunched on 15 December 2006 and UNITE acts as its manager as well as retaininga co-investment stake. The Fund's Estimated Net Asset Value as at 31 March 2008 was £1.002 per unit,down from £1.020 at 31 December 2007, reflecting a decrease of 1.8%. Inarriving at the value of the Fund's units, its property portfolio wasindependently valued at £829 million, representing a decline of 0.7% during thequarter at gross asset value level. The property portfolio was affected by outward yield movements of 13 basispoints over the quarter, although this was substantially offset by the effect ofrental growth, relating to the forthcoming academic year, reflecting strongyear-to-date reservations performance. A negative movement in the market value of interest rate swaps held by the Fundcontributed to the balance of the reduction in the value of units. As at 31 March 2008, reservations for the forthcoming 2008/09 academic year hadbeen received for 10,987 bed spaces, representing 62% of the Fund's portfolio.This represents a significant increase compared to the same time in 2007 whenreservations had been received for 53% of the same bed spaces and demonstratesstrong progress upon the reservations level of 55% reported for the Fund'sportfolio at the time of UNITE's preliminary results on 5 March 2008. At 31 March 2008 UNITE's stake in the Fund stood at 20.7% (31 December 2007;20.3%), close to its stated investment target of 20%. Commenting on the quarterly valuation, Joe Lister, UNITE's Chief FinancialOfficer said: "The Fund's performance in the quarter reflects the resilient nature of theunderlying assets. The anticipated pressure on yields has been substantiallyoffset by the rental growth and strong sales for the forthcoming academic yearand we anticipate this performance comparing favourably to the IPD index." Notes: 1 Estimated Net Asset Value excludes any non-capital profits accruing during thequarter. ENDS For further details please contact: Joe Lister Telephone: 0117 302 7006 The UNITE Group plc Stephanie Highett / Dido Laurimore / Laurence Jones Telephone: 020 7831 3113 Financial Dynamics Email: [email protected] / [email protected] / laurence.jones @fd.com About UNITE • UNITE is the UK's leading provider of student accommodation; • UNITE currently operates accommodation for 38,000 students in key university markets across England, Wales and Scotland • The value of UNITE's completed property portfolio is estimated to be worth c.£2.9 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 £1billion 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. The Fund has invested in direct let assets in provincial markets in the UK. 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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