Unite Group's portfolio value rises in second quarter

8th Jul 2015 16:29

Student accommodation provider the Unite Group said valuations for both its portfolios lifted in the second quarter.The Unite UK Student Accommodation Fund made up of 75 properties was valued at almost £2bn.The valuation included the £271m acquisition of the Ahli United Bank portfolio, but excluding the acquisition the portfolio increased 4% on a like for like basis.The developer's London Student Accommodation Joint Venture, of 15 properties, was independently valued at £612m, which is a 5.6% increase on a like for like basis in the quarter.Unite Group said the increase in valuations was driven by 20 basis points of yield compression of USAF on a like for like basis and 25 basis points of compression in LSAV in the quarter.Unite Group chief financial officer Joe Lister said the yield compression was supported by strong operational performance with reservations at 86% for the next academic year.Shares in Unite Group rose 0.78% to 582.5 when the market closed on Wednesday.