Unite Group enjoys valuation uplift in third quarter

Student halls property developer Unite Group said its two main funds had increased their value in the third quarter, driven by rental growth as valuation yields remained stable.

The Unite UK Student Accommodation Fund (USAF) was independently valued at £2.26bn, an increase of 1% during the three months to 30 September on a like-for-like basis.

At the same time, the London Student Accommodation Joint Venture (LSAV) was valued at £995m, up 0.5% on a like-for-like basis.

The USAF portfolio was valued at an average yield of 5.6% and LSAV's portfolio at 4.9%.

Nearing the final stage of the lettings cycle for the academic year, the entire Unite portfolio had let 97% of bed spaces at rental levels 3.8% higher than last year on a like-for-like basis.