Rising property values help insulate developer from worst of recession

Strong student lettings is helping developer Unite ride out the recession.

The student housing developer said 97% of its bedrooms had been let for the 2009/2010 academic year.

The group said an increse in property values had also led to an increase its portfolio and fund units.

The estimated net asset value of the group's Student Accomodation Fund at 30 September was £0.715 per unit, an increase in 0.4% in four months.

The property portfolio was valued at £877m, an increase of 1.0% since June 2009 when it was valued at £869m.

Joe Lister, Unite's chief financial officer, said: "The Fund's performance in the third quarter of 2009 demonstrates the continued resilience of student accommodation and its ability to generate consistent occupational performance and rental growth despite challenging economic conditions."

"Ongoing rental growth has been and will continue to be the key driver of the strong relative performance of the fund's property portfolio and we are delighted to report another excellent lettings performance."

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