Unite hails strong 2010 performance

11th Jan 2011 07:52

Student accommodation firm Unite Group said the estimated value of its UK Student Accommodation Fund (USAF) rose 6% in 2010.The estimated net asset value (NAV) of the fund rose 1.1% in the fourth quarter to 80.8p per unit, from 79.9p at the end of September. At the end of 2009 the estimated NAV was 76.2p.In arriving at the value of the fund's units, its property portfolio, now comprising 21,697 beds in 64 properties across 20 UK markets, was independently valued at £1,231m."USAF has delivered another strong performance in 2010 with 6.0% NAV growth and a total return of 11.0% to investors. The NAV growth has been driven primarily by rental growth reflecting the ongoing demand for good quality, well located student accommodation," said Unite's chief financial officer, Joe Lister.The group saw rental growth of 0.4% in the final three months of 2010. With the majority of rental growth typically being recognised in the first half of the year, in line with the lettings cycle, the outlook for 2011 remains in the 3-4% range. Valuation yields remained stable during the quarter.