Unite's student residential fund NAV dips 1.8% in Q1

UK property firm Unite Group said the estimated net asset value of its UNITE UK Student Accommodation Fund fell by 1.8% in the first quarter of 2008. The funds NAV stood at £1.002 on 31 March, down from GBP1.020 at end-2007.This valuation is the result of an independent valuation of the funds assets, which valued the funds assets at £829mln, which was a decline of 0.7% at gross asset value level for the quarter, the company said.

Unite added that the property portfolio was hit by outward yield movements of 13 basis points over the quarter, although this was largely offset by the impact of rental growth ahead of the forthcoming academic year, reflecting strong year-to-date reservations performance. At the end of March, 62% of the fund's available 'bed spaces' had been reserved for the next academic year, a strong increase ion the 53% seen the same time 12 months ago.

'The fund's performance in the quarter reflects the resilient nature of the underlying assets. The anticipated pressure on yields has been substantially offset by the rental growth and strong sales for the forthcoming academic year and we anticipate this performance comparing favourably to the IPD index,' the company said in a statement.