Unite Group PLC (The) Unite & GIC extend LSAV joint venture (3143X)
04 Mayo 2021 - 1:00AM
UK Regulatory
TIDMUTG
RNS Number : 3143X
Unite Group PLC (The)
04 May 2021
4 May 2021
THE UNITE GROUP PLC
('Unite Students', 'Unite', the 'Group', or the ' Company ')
UNITE & GIC EXTEND LSAV JOINT VENTURE & AGREE
PERFORMANCE FEE
Unite Students, the UK's leading owner, manager, and developer
of student accommodation, today announces the extension of its
joint venture with GIC by ten years to September 2032. It also
announces an agreement to settle its performance fee from the
London Student Accommodation Joint Venture ('LSAV') in cash during
Q4 2021.
LSAV was established in September 2012 with a ten-year term
maturing in September 2022. Unite and GIC have agreed the ten-year
extension following a successful partnership that has delivered
strong development returns and growth in rental income. Both Unite
and GIC will retain a 50% equity stake in LSAV, which had net
assets of GBP814 million as at 31 December 2020 (Unite share:
GBP407 million).
Unite's performance fee will be paid in cash in Q4 2021, based
on valuations and cashflows to 30 September 2021. Unite's share of
the performance fee is expected to be approximately GBP30-40
million, of which GBP9.2 million had already been recognised in
Unite's balance sheet as at 31 December 2020. Unite's remaining
share of the performance fee is expected to be approximately
GBP20-30 million (5-8 pence per share), to be recognised in 2021.
The performance fee will be a capital receipt and is not included
in the Group's EPRA EPS guidance of 27-30 pence for 2021. The
performance fee will reduce LTV by just under one percentage point
on a pro forma basis.
Unite will be entitled to receive a performance fee from LSAV
equivalent to 12.5% of returns in excess of 8% per annum in the
period from 2021 to 2032. In addition, the Aston Student Village
part of the joint venture with GIC will be merged with LSAV,
further simplifying the Group's funding structure. Unite will
continue to act as property and asset manager for the duration of
the new joint venture on existing terms and fee levels.
As part of the extended relationship, Unite and GIC will explore
opportunities to expand LSAV, through potential acquisitions of
investment assets.
Richard Smith, Unite Students Chief Executive, commented:
"I am delighted to agree a long-term extension of our LSAV joint
venture with GIC. The transaction provides a strong endorsement of
our sector-leading operating platform from GIC, a high calibre
investment partner with whom Unite has enjoyed a successful
relationship since 2005. The realisation of the LSAV performance
fee in 2021 reflects a combination of strong development returns
and rental growth by LSAV's London portfolio since 2012."
ENDS
For further information, please contact:
Unite Students
Richard Smith / Joe Lister / Michael Burt Tel: +44 117 302 7005
Unite press office Tel: +44 117 450 6300
Powerscourt
Justin Griffiths / Victoria Heslop Tel: +44 20 7250 1446
About Unite Students
Unite Students is the UK's largest owner, manager and developer
of purpose-built student accommodation, serving the country's
world-leading Higher Education sector. We provide homes to 73,000
students across 173 properties in 25 leading University towns and
cities. We currently partner with over 60 Universities across the
UK.
Our people are driven by a common purpose: to provide a 'Home
for Success' for the students who live with us. Unite's
accommodation is safe and secure, high quality and affordable.
Students live predominantly in ensuite study bedrooms, with rents
covering all bills, insurance, 24-hour security and high-speed
Wi-Fi. We also hold a five-star British Safety Council audit
rating.
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. Unite is invested in and
operates two specialist funds and joint ventures with institutional
investment partners: the GBP3 billion Unite UK Student
Accommodation Fund (USAF) and the GBP1 billion London Student
Accommodation Vehicle (LSAV).
For more information, visit:
Unite's corporate website www.unite-group.co.uk
The student site www.unitestudents.com
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
JVESSAFSEEFSEDI
(END) Dow Jones Newswires
May 04, 2021 02:00 ET (06:00 GMT)
Unite (LSE:UTG)
Gráfica de Acción Histórica
De Mar 2024 a Abr 2024
Unite (LSE:UTG)
Gráfica de Acción Histórica
De Abr 2023 a Abr 2024