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Quarterly valuation update for the Unite UK Student Accommodation Fund and the London Student Accommodation Joint Venture – 9 October 2017

9 October 2017

The Unite Group plc, the UK’s leading manager and developer 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 2017.

At 30 September 2017, USAF’s property portfolio was independently valued at £2,137 million representing a like-for-like increase of 1.6% during the quarter. The portfolio comprises 24,450 beds in 69 properties across 23 University towns and cities in the UK.

LSAV’s investment portfolio was independently valued at £1,102 million, up 1.6% in the quarter. LSAV’s investment portfolio comprises 8,477 beds across 13 properties in London and Aston Student Village in Birmingham.

The increase in valuations is driven by rental growth and 7 basis points of yield compression across both USAF and LSAV in the quarter. The overall USAF portfolio is now valued at an average yield of 5.5% and LSAV’s portfolio at 4.9%.

As we enter the final stages of the lettings cycle for the 2017/18 academic year, Unite Students has achieved a strong lettings performance across its whole portfolio with 99% of bed spaces let.

Joe Lister, Unite Students Chief Financial Officer, commented:

“The lettings performance for the 2017/18 academic year has been very strong with occupancy at 99% and full year rental growth at the mid to upper end of our 3.0% – 3.5% forecast. Contracts with university partners guaranteeing income and rental growth now underpin 60% of the portfolio providing a high level of certainty over future income and demonstrating the strength of our relationships with high to mid-ranking universities. Demand from direct let bookings remains strong due to our high quality portfolio and market-leading service platform.”

For further information, please contact:

Unite Students

Joe Lister, Chief Financial Officer
Tel: +44 117 302 7005

Candice Macdonald, Head of Corporate Communications
Tel: +44 7525 592521