Higher occupancies lift Unite Group valuations

11th Jan 2016 08:21

(ShareCast News) - Student accommodation manager Unite Group said high occupancies and rental growth boosted valuations of its two portfolios in the final quarter of 2015.The Unite UK Student Accommodation Fund (USAF) was up 2.3% in the period £2.07bn and 13.9% over the full year. The portfolio comprises 26,813 beds in 75 properties across 24 University towns and cities in the UK.As a result of the strong total return in USAF during 2015, Unite expects to earn a net performance fee in the region of £20m. The fee will be paid in units in the first quarter of 2016.The London Students Accommodation Joint Venture (LSAV) investment portfolio was independently valued at £738m, up 2.5% on a like-for-like basis in the quarter and 17.4% over the full year. LSAV's investment portfolio comprises 4,636 beds across 12 properties in London and three properties in Edinburgh.Unite said the increases were "driven primarily by rental growth and six basis points of yield compression in USAF and 10 basis points of yield compression in LSAV on a like-for-like basis in the quarter (65 and 81 basis points respectively over the full year)."The overall USAF portfolio is now valued at an average yield of 5.7% and LSAV's portfolio at 5%," it added.