Unite Group PLC UTG USAF Valuation

  Unite Group PLC (UTG) - USAF Valuation

RNS Number : 0628H
Unite Group PLC
06 July 2012
 



                                 6 July 2012

 

                             THE UNITE GROUP PLC

                   ("UNITE", the "Group", or the "Company")

                                       

                          30 JUNE 2012 VALUATION OF

                   THE UNITE UK STUDENT ACCOMMODATION FUND

The UNITE  Group  plc, the  UK's  leading  developer and  manager  of  student 
accommodation, today reports  the Estimated  Net Asset Value*  ("NAV") of  the 
UNITE UK Student Accommodation Fund (the "Fund") as at 30 June 2012.

 

The NAV as at 30 June 2012 was £660.0m, reflecting an increase of 3.8%  during 
the second quarter of 2012 (31 March 2012: £635.6m).

 

The principal components of the movement in net asset value were as follows:

 

Effect on Estimated NAV:                               Q2 2012   Q2 2011

                                                       
Movement in property values                                 1.8%      2.0%
Movement in swap values                                    -0.1%     -1.1%
Partial Landsbanki recovery                                 2.0%         -
Other factors                                               0.1%      0.2%
Increase in Estimated NAV                                   3.8%      1.1%
Increase in underlying gross property portfolio value       1.0%      1.0%

 

In arriving at the value of the Fund, its property portfolio, which  comprises 
21,280 beds in 59 properties across 20 UK towns and cities, was  independently 
valued at £1,270m. During the quarter the Fund sold a portfolio of four assets
in Manchester comprising 437 beds for £21m, in line with their carrying value.
The movement during the  quarter represents a  like-for-like increase of  1.0% 
(1.5% in the year to date) in the underlying value of the property  portfolio, 
driven by  strong quarterly  rental growth  against a  stable valuation  yield 
during the quarter  of 6.67%  (31 March 2012:  6.67%). In  line with  previous 
years, further rental growth  is expected to be  achieved as reservations  for 
the forthcoming 2012/13 academic year progress.

 

Reservation levels  for the  forthcoming academic  year stand  at 71%  of  the 
Fund's bed spaces reserved.  This is slightly behind  the 73% achieved at  the 
same point in 2011, when applications  were accelerated as students looked  to 
enter university prior to the tuition fee increases, but in line with the  71% 
achieved at the same point in 2010.

 

In June, the Fund received a £12.5m payment from Landsbanki, representing  the 
first instalment of repayment of the £30m  deposit it placed with the bank  in 
2008. The  Fund provided  for the  full amount  of the  deposit in  2008  and, 
therefore, the recovery added  to the growth  in NAV by  2.0% in the  quarter. 
UNITE's share  of the  recovery is  £2.6m.  The Fund's  status as  a  priority 
creditor is now unencumbered, meaning  further payments will be received  over 
time as Landsbanki continues to liquidate its assets. The Winding-up Board  of 
Landsbanki has estimated that 100% of the deposit will be repaid, although has
not provided a clear indication of timescales. Due to the inherent uncertainty
in the  timing  of  recovery,  future receipts  will  be  accounted  for  when 
received.

 

Commenting on  the  Fund's  valuation, Joe  Lister,  UNITE's  Chief  Financial 
Officer, said:

 

"The Fund's  portfolio has  delivered further  rental uplift,  with  continued 
growth anticipated in the third quarter  of 2012 as the 2012/13 academic  year 
lettings cycle  completes.  Recovery  of  the  first  tranche  of  the  Fund's 
Landsbanki deposit during June is a very positive development, adding £2.6m to
the Group's net asset value and creating acquisition capacity for the Fund."

 

 

* Estimated Net Asset Value represents the capital position of the Fund and
does not include undistributed income.

 

ENDS

 

For further information, please contact:

 

The UNITE Group plc                           Tel: 0117 302 7004

Joe Lister, Chief Financial Officer

Paul Harris, Communications Director

Sally Quigg, Head of Corporate Communications

 
FTI Consulting                                Tel: 020 7831 3113

Stephanie Highett

Dido Laurimore

Toyah Simpson

 

About The UNITE Group 

The UNITE Group is the UK's leading developer and manager of student
accommodation, with a business model that focuses on two core areas:

1.    Development and Asset Management: UNITE undertakes the acquisition,
planning and development of purpose-built student accommodation in the UK.
Through the continuous assessment of quality and location of its investment
portfolio, UNITE is well positioned to deliver value-adding strategies to
those assets where further opportunities are identified. Working on behalf of
its partners, UNITE acts as Fund Manager for the UNITE UK Student
Accommodation Fund in addition to being 16.3% shareholders. UNITE also manages
a number of Joint Venture partnerships.

2.    Professional property management: UNITE is home to some 40,000 students
and has consistently proven high occupancy levels across its portfolio.

 

UNITE works closely with universities and colleges, in order to deliver high
quality, well-located student accommodation at affordable prices in strong
higher education markets.  

Founded in 1991, UNITE is listed on the London Stock Exchange (UTG).

www.unite-group.co.uk

www.unite-students.com

 

                     This information is provided by RNS
           The company news service from the London Stock Exchange
 
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