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Student accommodation investor The Unite Group has announced an increase in the quarterly property valuation of the Unite UK Student Accommodation Fund and the London Student Accommodation Joint Venture as at 30 June 2019.
At 30 June 2019, USAF's property portfolio was independently valued at £2.4bn, representing a like-for-like increase of 1.3% during the quarter. The portfolio comprises 24,759 beds in 67 properties across 21 University towns and cities in the UK.
LSAV's investment portfolio was independently valued at £1.3bn, up 1.1% in the quarter on a like-for-like basis. LSAV's investment portfolio comprises 8,354 beds across 12 properties in London and Aston Student Village in Birmingham.
The increase in valuations has been driven by rental growth. Overall USAF the portfolio is valued at a blended yield of 5.3% whilst the LSAV portfolio is valued at 4.5%.
Reservations for the 2019/20 academic year have seen 90% of bed spaces let, ahead of the same time last year with 89% being let.
Joe Lister, Unite Students Chief Financial Officer, commented:
'The reservation levels for 2019/20 are very good and in line with last year, demonstrating the continued demand for our high quality rooms and value added services.
'This performance is driven by our focus on long term partnerships with mid and top ranked Universities and our investment in locations where demand for purpose built student accommodation is the strongest. We remain confident in a rental growth outlook of 3.0-3.5% for the 2019/20 academic year.'