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Unite Students Releases Latest Valuation Update

Posted by Richard Ward in

Image courtesy of Flickr, Creative Commons

Unite Students has announced its quarterly property valuation of the Unite UK Student Accommodation Fund (USAF) and the London Student Accommodation Joint Venture (LSAV).

As at the end of 2019, USAF's portfolio was valued at £2,850 million, reflecting a like-for-like increase of 0.8% for the quarter and 3.1% for the year. The portfolio consists of 30,209 beds across 79 properties in 22 university towns and cities in the UK.

Meanwhile, the portfolio of LSAV was valued at £1,335 million, representing an increase of 2.7% in the quarter and 7.4% for the year. The LSAV portfolio comprises of 8,354 beds in 12 properties across the capital, as well as Aston Student Village in Birmingham.

The like-for-like valuation increase can be attributed to rental growth in USAF and a combination of rental growth and yield compression in LSAV.

The USAF portfolio is valued at an average yield of 5.3%, whilst the LSAV portfolio carries an average yield of 4.4%.

Commenting on the update, Joe Lister, Unite Students Chief Financial Officer, said: "The USAF and LSAV portfolios have both performed well in 2019 with property valuation growth of 3.1% and 7.4% respectively."

"Returns have been delivered through high levels of occupancy, rental growth and have been enhanced by yield compression in London. Bookings for the 2020/21 academic year have started strongly with 68% of rooms already sold, ahead of the previous year, reflecting the continued strong demand for places at the high-quality universities with which we partner."