Unite Group gains as student accommodation rents increase
The value of Unite Group’s student accommodation increased due to rental growth and stable yields in the first quarter.
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The value of Unite UK Student Accommodation Fund (USAF), which comprises of 24,176 beds in 68 properties across 23 University towns in the country, rose 0.5% to £2.08bn at 31 March.
Meanwhile, the London Student Accommodation Joint Venture’s (LSAV) investment portfolio was valued at £1.07bn - after the acquisition of Aston Student Village and recent disposals – which was up 0.6% in the first quarter on a like-for-like basis.
Its investment portfolio comprises of 8,477 beds in 13 properties in London and Birmingham.
The FTSE 250 company said the increase in valuations was driven by rental growth with stable yields in the quarter.
The overall USAF portfolio had an average yield of 5.6% and LSAV's portfolio with 5%.
Reservations for the 2017/18 academic year are at record levels with 77% of the rooms booked, at prices that support the company’s full year rental growth outlook of between 3-3.5%.
Chief financial officer Joe Lister said: "Unite Students has delivered another strong performance in the first quarter of 2017, with reservations at record levels for this time of year and supporting our rental growth outlook of 3-3.5%."