Quarterly valuation update for the Unite UK Student Accommodation Fund and The London Student Accommodation Joint Venture – 10 January 2017
Unite Students, the UK’s leading developer and manager of student accommodation, announces the quarterly property valuation of the Unite UK Student Accommodation Fund (“USAF”) and the London Student Accommodation Joint Venture (“LSAV”) as at 31 December 2016.
At 31 December 2016, USAF’s property portfolio was independently valued at £2,288 million, representing a like-for-like increase of 0.6% during the quarter and 5% over the full year. The portfolio comprises 27,441 beds in 76 properties across 24 University towns and cities in the UK.
LSAV’s property portfolio was independently valued at £1,009 million, up 0.5% on a like-for-like basis in the quarter and 4% over the full year. LSAV’s portfolio comprises 6,197 beds across 14 properties in London and three properties in Edinburgh.
The increase in like-for-like valuations is driven by rental growth in the quarter. Valuation yields have remained stable in the quarter with 9 basis points of yield compression across the year. The USAF portfolio is valued at an average yield of 5.6% and LSAV’s portfolio at 4.9%.
As a result of the strong total return in USAF during 2016, Unite expects to earn a net performance fee in the region of £6 million. The fee will be paid in units in the first quarter of 2017.
Joe Lister, Unite Students Chief Financial Officer, commented: “Demand for our high quality, well located student accommodation and customer offering remained strong throughout 2016. The continued high occupancy and lettings performance, as well as the limited yield compression, contributed to the strong performances of both USAF and LSAV. Bookings for the 2017/18 academic year, which opened towards the end of 2016, have also started well.”
For further information, please contact:
Joe Lister, Chief Financial Officer
Caroline Hall, PA to Chief Financial Officer
Tel: +44 117 302 7005
Tel: +44 20 3772 2562