Unite has strong Q3 fund performance

8th Oct 2014 08:18

Student housing provider Unite Group reported a strong third quarter performance from its investment fund and said lettings were doing well. Unite said the estimated net asset value (NAV) of the Unite UK Student Accommodation Fund (USAF) at 30 September was£903.8m, reflecting an underlying third quarter 2.1% increase in value, or 5.1% in the nine months to September, together with the impact of £17.8m of new equity issued during the period. USAF's property portfolio, comprising 24,955 beds in 69 properties across 22 UK towns and cities, was independently valued at £1.56bn, representing a like-for-like increase of 1.7% in portfolio value.In the nine months to 30 September, the value increased by 3.2% on a like-for-like basis with rental growth contributing 2.1% of the movement and yield compression 1.1%. In July, USAF bought a 2,904-bed student accommodation portfolio from the Cordea Savills Student Hall Fund for £137m, and separately an asset comprising 378 beds in Huddersfield from Unite for £20m in September.Unite got £11m in cash and the remainder in USAF units, increasing its stake in the fund to 21.6% from 20.7%. The lettings cycle for the 2014/15 academic year is now largely complete and the fund's portfolio has achieved high occupancy levels, with 98% of bed spaces let for the academic year. Unite finance chief Joe Lister said: "We are delighted to report a strong lettings performance with 98% of the fund's portfolio occupied for the 2014/15 academic year."