Nottingham Scheme Likely to Be Approved
19th Mar 2019
The Unite Group Plc has reported that the value of its UK student accommodation fund has increased over the last quarter as has its London student accommodation joint venture portfolio.
As at 30 June 2016 Unite's UK student accommodation fund was valued at a total of £2.14bn, representing a 1.0% increase from the end of March. The portfolio consists of 74 properties across 23 university towns and cities, totalling 26,319 beds.
Its specifically designated London student accommodation portfolio also reported a 1.0% increase over the same time period and is now valued at £758.0m. Their London portfolio is comprised of 4,636 beds spread across 12 properties within London as well as three sites in Edinburgh.
According to Unite, the increase was primarily a result of a rise in rental growth during the three-month period. During the quarter valuation yields have remained flat at 5.6% for its student accommodation fund and 4.9% for its London portfolio.
What could be interesting to see is what the impact of the recent Brexit vote has on the aforementioned portfolios, the values of which were calculated before the EU referendum result last month. Unite has stressed however that EU students make up just 7% of all full-time students and only 9% of Unite's customer base.
With long term growth in student numbers expected to remain strong the company expects that demand for purpose-built student accommodation will continue to rise.
For the coming year Unite has indicated that reservations as up slightly year-on-year at 87% compared to 86%, which has resulted in rental growth of 3.5%-4.0%.
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