In a trading update, the student accommodation provider noted occupation reservations for 2024/25 had reached 94% by 30th June.
This sales progress has led the group to upgrade its rental growth expectations from 6% for the upcoming academic year.
The update provided insights into portfolio valuation growth for both the Unite UK Student Accommodation Fund (USAF) and the London Student Accommodation Joint Venture (LSAV).
As of 30th June, Unite’s property portfolio was independently valued at £2.9bn, a 3.2% increase during the quarter and a reflection of 3.3% rental growth during that time.
At the same time, LSAV’s portfolio was independently valued at £2bn, a 2.8% increase during the quarter with quarterly rental growth of 2.9%.
“Student demand remains strong from both domestic and international students, reflecting the continued appeal of UK higher education, our fixed-price, all-inclusive offer and the growing shortage of high-quality student homes,” said Joe Lister, CEO at Unite Students.
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“Together with our alignment to the UK’s strongest universities, this supports stronger rental growth for the 2024/25 academic year and underpins growth in our property valuations. We have also made further progress with the delivery of our record development pipeline.”
Unite also revealed its Central Quay development in Glasgow has received a resolution to grant planning permission. The firm now anticipates securing full planning consent in the coming months, helping deliver 934-beds for the 2027/28 academic year.
This will come at a development cost of £124m with a 7.5% yield.
Unite has also secured permission to demolish existing buildings in Newcastle-Upon-Tyne to make way for the Castle Leazes development.
A joint venture with Newcastle University, a planning application has recently been submitted to create 2000 new beds on the site.
Unite has taken confidence from Labour’s landslide victory in the general election. In its update, the group noted that the Labour Party manifesto recognised the “soft power and economic value” of UK higher education.
The update added: “Encouragingly, there is also recognition that university funding arrangements are not meeting the needs of students and universities and the new government has committed to creating a secure future for UK higher education.”
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