The UNITE UK Student Accommodation Fund, comprising about half the student accommodation managed by Bristol-based UNITE group, was valued at £1.25bn at the end of March. Its estimated net asset value (NAV) at 30 June 2011 was £0.837 per unit, reflecting an increase of 1.1% during the second quarter of 2011.
The fund – comprising 21,697 beds in 64 properties across 20 locations - helped transform UNITE's business model to that of a developer of new purpose-built student accommodation and manager of funds which own student accommodation properties operated by UNITE and in which the company has a significant minority stake.
The NAV figures reflect an increase of 1% in the underlying gross property values, driven by quarterly rental growth – and takes total rental growth over the six months to end June to 1.5%. Valuation yields remained stable during the quarter at 6.67%.
Joe Lister, UNITE's chief financial officer, said: "Further rental growth is anticipated in the third quarter. Reservation levels for the forthcoming academic year also remain positive with 73% of the Fund's bed spaces reserved, ahead of the 71% achieved at the same point in 2010."
UNITE, which has more than 42,000 beds in its portfolio, not only acts as fund manager for the the student accommodation fund but is also a 16.3% shareholder in the fund. It also manages a number of joint venture partnerships.
In a separate statement to the Stock Exchange, UNITE also announced that non executive director Nigel Hall is to retire from the board at its AGM next May 2012 when he will have served three full terms in office.
Stuart Beevor will assume the position of senior independent director with immediate effect while a search for Mr Hall's replacement has already begun. Mr Hall will continue to act as chair of the audit committee until he retires.
