Student accomodation group Unite increase bookings

STUDENT accommodation group Unite said it is on course to deliver a recurring profit for the full year ahead of management expectations.

In a trading update today covering the period from its half year results on July 1 to November 15, it said 99% of its 41,000 rooms, in more than 130 properties across the UK, have been sold for the 2011/2012 academic year, compared with 97% for 2010/2011.

Liverpool is Unite’s third biggest market, embracing 10 properties, including the Grand Central development in Skelhorne Street, providing a total of 3,372 bed spaces.

Like-for-like net group operating income is 3.1% ahead and £145m of new debt facilities have been arranged or extended.

Lettings for the 2012/2013 academic year started in early November and Unite says it has seen an “early positive response”, adding “initial discussions with universities regarding their demand are also encouraging and we expect rental growth for 2012/2013 to be at a similar level to this year”.

Unite says the increase in tuition fees in 2012 is likely to result in a headline drop of between 5% and 10% in applications next year.

But it said it does not anticipate a reduction in actual student numbers “nor in the number of students requiring good quality, purpose build accommodation”.

Mark Allan, Unite chief executive, said today: “We have continued to make good progress in line with our strategy and have seen excellent performance through the third quarter, in terms of reservation levels, customer service and financial performance.

“We remain well positioned to outperform the wider student accommodation sector as a result of our London focus, the high quality of our portfolio, strong university relationships and our established brand platform.

“However, we continue to monitor closely the capital markets and the broader economic picture and believe that a cautious approach to investment and managing debt is prudent in the near term.”

Source http://www.liverpooldailypost.co.uk/ldpbusiness/business-local/2011/11/16/student-accommodation-group-unite-increases-bookings-92534-29786513/#ixzz1n05Qe6U4

London Student accommodation 9% yield property

Bradford Student accommodation 10% yield  property