Unite Group says rental growth in line with target

Student accommodation provider Unite Group said full year rental growth was in line with its 3.0%-to-3.5% target.

In a trading statement, Unite said it was 98% let across its portfolio for the 2018/19 academic year.

The company said its exposure to high and mid-tier universities was on track to reach 90% on completion of its secured pipeline.

Seven new student residences with a total of 3,074 beds opened in September in Birmingham, Bristol, Durham, Newcastle, Portsmouth and Sheffield.

“Beds are fully let to students attending high and mid-ranked universities and 52% of these beds are secured on nomination agreements with an average life of 10 years,” Unite said.

In a separate announcement, Unite said it had priced a £275m senior unsecured bond with a term of 10 years and 3.5% interest rate.