Two of Unite’s vehicles saw substantial increases in value during 2015 as the student accommodation sector continued to perform strongly.
Unite UK Student Accommodation Fund’s portfolio increased in value by 2.3% during the fourth quarter of 2015 and by 13.9% over the year and is now valued at £2.1bn. The portfolio comprises 26,813 beds in 75 properties across 24 towns and cities. The overall UK Student Accommodation Fund portfolio now has an average yield of 5.7%.
Unite expects to earn a net performance fee in the region of £20m from the fund for 2015. The fee will be paid in units in the first quarter of 2016.
The value of Unite’s London Student Accommodation joint venture with GIC increased by 2.5% over the final quarter of 2015 and by 17.4% during the full year. Its investment portfolio comprises 4,636 beds across 12 properties in London and three properties in Edinburgh. The portfolio is now valued at a 5% yield.
Joe Lister, Unite Students chief financial officer, said: “Returns have been delivered through levels of high occupancy, rental growth and have been enhanced by yield compression.”
