TIDMUTG
RNS Number : 9374L
Unite Group PLC
11 September 2019
PRESS RELEASE
11 September 2019
THE UNITE GROUP PLC
('Unite Students', 'Unite', the 'Group', or the 'Company')
UPDATE ON TRADING AND TIMETABLE FOR THE ACQUISITION OF LIBERTY
LIVING
The Unite Group plc, one of the UK's leading owners, managers
and developers of student accommodation, announces an update on
current trading and the timetable for the proposed acquisition of
Liberty Living.
Student intake in 2019/20 is expected to be in line with the
record levels seen over the past few years with growth in the
University cities where Unite operates. We have continued to see
strongest growth in acceptances at higher tariff Universities,
which have risen by 1.8% versus last year.
As we enter the final stages of the lettings cycle for the
2019/20 academic year, Unite Students has achieved a strong
lettings performance across its portfolio with 98% of bed spaces
let. This follows a strong sales performance in summer 2019 with
revenue around 40% higher versus last year. As such, we remain
confident in delivering rental growth of 3.0-3.5% for 2019/20 and
2020/21, including improved utilisation.
The Competition and Markets Authority (the 'CMA') has today
confirmed the start of its Phase 1 merger inquiry in relation to
our proposed GBP1.4 billion acquisition of Liberty Living.
Completion of the acquisition is conditional upon CMA clearance and
is anticipated in Q4 2019. We remain confident, based on the
revised timetable, of delivering the previously outlined cost
synergies of GBP4 million in 2020 and GBP15 million p.a. from
2021.
Richard Smith, Chief Executive of Unite Students, commented:
"Demand for UK Higher Education remains robust, as reflected in
the record share of 18-year olds choosing to attend University.
Student demand also supports our strategic alignment to mid and
higher tariff Universities. Despite increased political and
economic uncertainty, we maintain our positive outlook for the
business, reflecting the strength of our operational and letting
performance and opportunities to drive further improvements in
utilisation and efficiency while investing in further value-added
services for our students."
ENDS
For further information, please contact:
Unite Students
Richard Smith / Joe Lister / Paul Richmond Tel: +44 117 302
7005
Powerscourt
Justin Griffiths / Victoria Heslop Tel: +44 20 7250 1446
About Unite Students
Unite Students is one of the UK's largest owners, managers and
developers of purpose-built student accommodation serving the
country's world-leading higher education sector. We currently
provide homes for almost 50,000 students in circa 130 properties
across 22 leading university towns and cities in England and
Scotland. Unite also has a strong development pipeline, which will
deliver more than 6,000 beds in the next three years.
Our 1,400 people are driven by a common purpose: to provide the
students who live with us a 'Home for Success' and to be the most
trusted brand in the sector. We do this through quality service,
quality people and quality properties, all designed on the basis of
an excellent insight into students' needs and preferences.
Unite's accommodation is high quality, safe and secure, and
located where students want to live. Students live predominantly in
en-suite study bedrooms with rents covering all bills, insurance,
24-hour security, fortnightly cleaning services and high-speed
Wi-Fi. MyUnite, our mobile app, provides practical support such as
instant messaging and maintenance requests.
Our commitment to customer service is powered by an innovative,
in-house operating platform. It provides a wide range of benefits
to our students, such as an optimised online booking process, as
well as providing us with a unique ability to drive value from our
portfolio through scale efficiencies and revenue management.
Alongside delivering quality service, our other strategic
priority is delivering growing and sustainable earnings,
underpinned by a strong capital structure. A key part of this
strategy is growing the number of beds let through partnerships
with mid and high tariff universities which are experiencing record
levels of student demand. We currently partner with 60 higher
education institutions, guaranteeing that approximately 60% of our
rooms are let under multi-year, 'nomination agreements' providing
high visibility of forward occupancy and rental growth.
Unite is invested in and operates two specialist funds and joint
ventures with institutional investment partners: the GBP2 billion
Unite UK Student Accommodation Fund (USAF), and the GBP1 billion
London Student Accommodation Vehicle (LSAV).
Unite is the founder of and major donor to the Unite Foundation,
a charitable trust established to support talented students facing
challenging financial circumstances through the provision of free
accommodation annual scholarships. The Foundation has so far
provided scholarships for 250 young people working in close
collaboration with 29 partner universities.
Founded in 1991 in Bristol, Unite Group is an award-winning Real
Estate Investment Trust (REIT), listed on the London Stock Exchange
and a member of the FTSE 250 Index.
For more information, please visit Unite's corporate website
www.unite-group.co.uk, the student site www.unite-students.com or
the Unite Foundation www.unitefoundation.co.uk
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END
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