Quarterly valuation update for the Unite UK Student Accommodation Fund and the London Student Accommodation Joint Venture – 10 October 2016
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 30 September 2016.
At 30 September 2016, USAF’s property portfolio was independently valued at £2,264 million representing a like-for-like increase of 1.0% during the quarter. The portfolio comprises 27,441 beds in 76 properties across 24 University towns and cities in the UK following the acquisition of Gosford Gate in Coventry and Greetham Street in Portsmouth in September from Unite under the pipeline agreement.
LSAV’s investment portfolio was independently valued at £995 million, up 0.5% on a like-for-like basis in the quarter. Following the practical completion of the 862 bed Stapleton House development in Islington and the 699 bed Olympic Way development in Wembley, LSAV’s investment portfolio now 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 and the USAF portfolio is now valued at an average yield of 5.6% and LSAV’s portfolio at 4.9%.
As we enter the final stages of the lettings cycle for the 2016/17 academic year, Unite Students has achieved a strong lettings performance across its whole portfolio with 97% of bed spaces let at rental levels 3.8% higher than 2015/16 on a like-for-like basis.
Joe Lister, Unite Students Chief Financial Officer, commented:
“The lettings performance for the 2016/17 academic year has again been strong, with occupancy currently at 97% and rental growth of 3.8%. This performance is driven by our continued focus on University relationships and the impact of our proprietary operating system, PRISM, on customer service and rental performance.”