Unite Group Plc · LSE:UTG

Unite — Investor Presentation (October 2012)

15 slides from Unite's investor presentation, Oct 5, 2012

  1. Slide 1: Analyst/investor tour

    Analyst/investor tour 5 October 2012

  2. Slide 2: Schedule

    SCHEDULE Time Item 09.00 Welcome and introduction Mark Allan London market overview Development update Richard Simpson 09.30 Tour of Moonraker Point 09.45 Journey to Stratford 10.15 Overview of Stratford site Richard Simpson 11.00 Journey to Tottenham Hale 11.30 North Lodge tour 12.00 Ends 1

  3. Slide 3: UNITE in London

    UNITE IN LONDON KEY FACTS UNITE London HESA London  UNITE will operate 7,650 beds in London in 2012/13 28.8% 26.5% (approx. 5,000 Direct Let) across 32 properties. Nationality: 46.8% 60.2% 13.3% - 1,348 opened for 2012/13. 24.4% - 1,500 beds spaces already secured for delivery UK Other EU Non-EU in

  4. Slide 4: London Market Dynamics

    LONDON MARKET DYNAMICS Room Types by origin of occupant: Broadly three categories of Purpose Built Student Accommodation: 1. Zone 1, top end mainly studios Primarily international students, rents £300 pw and upwards – no new supply, demand stable 2. ‘Traditional’ rooms (22%) Cluster (78%) Mix of UK

  5. Slide 5: Development Overview

    Development Overview Richard Simpson Managing Director, Property

  6. Slide 6: Development Overview

    DEVELOPMENT OVERVIEW  Proceeds of 2009 placing substantially deployed - 1,348 London beds completed 2012 - 1,514 London beds opening 2014 - 877 Glasgow beds opened 2011/2012  Compelling returns achieved – significantly accretive to NAV and earnings - 2012 openings 98% let - 9.4% average yield on c

  7. Slide 7: 2012 London Completions

    2012 LONDON COMPLETIONS Number Occupancy Total Total Total NAV NAV to Forecast Typical of beds AY 12/13 completed development uplift book at 30 yield on weekly value cost June 2012 cost cluster rent % £m £m £m £m £(12/13) 2012 London Waterloo Road 146 100 22 16 6 2 9.0% 225 Moonraker Point 674 100 1

  8. Slide 8: Moonraker Point, Southwark

    MOONRAKER POINT, SOUTHWARK  674 bedrooms  15 year agreement with Kings College  £112 million GDV (49% profit on cost)  Site initially acquired with ‘broken’ planning consent  Open book approach to letting of various construction packages resulted in £1 million of savings. 7

  9. Slide 9: North Lodge, Tottenham Hale

    NORTH LODGE, TOTTENHAM HALE  528 bedrooms  £46 million GDV (53% profit on cost) – forward sale to LSAV  Highly accessible location at attractive rents  2nd scheme within Hale Village regeneration site  ‘Showcase’ approach by team led to construction cost of £39k per room (value engineering and

  10. Slide 10: Wellington Lodge, Southwark

    WELLINGTON LODGE, SOUTHWARK  146 bedrooms  Agreement with LSE  £22 million GDV (37% profit on cost)  Option to sell to UCC  ‘Distressed ‘ site purchase  Use of innovative building techniques in response to site constraints. 9

  11. Slide 11: 2014 Development Programme

    2014 DEVELOPMENT PROGRAMME Number of Total Total Total NAV Forecast Forecast yield Typical beds completed development uplift NAV on weekly value cost remaining cost cluster rent £m £m £m £m £(12/13) 2014 London Camden 563 82 59 23 23 9.5% 219 Stratford 1 951 83 60 23 15 9.3% 166 1,514 165 119 46 38

  12. Slide 12: Stratford 1, Stratford

    STRATFORD 1, STRATFORD  951 bedrooms, opening 2014  Excellent transport links, adjacent to Westfield shopping centre  £83 million GDV, forward sale to LSAV, 38% profit on cost  26 storey tower with views across Olympic park  Site acquired from Westfield, who are also main contractor University

  13. Slide 13: St Pancras Way, Camden

    ST PANCRAS WAY, CAMDEN  563 bedrooms, opening 2014  £82 million GDV, 39% profit on cost  Adj. existing UNITE scheme and Royal Veterinary College  Mansell are main contractor; 22nd  Rare cluster led scheme in prime zone 1, UNITE London project Camden location  Site acquired from Travis Perkins,

  14. Slide 14: Future Development Pipeline

    FUTURE DEVELOPMENT PIPELINE  LSAV 50:50 joint venture with GIC established September 2012 - De-risks development - Greater visibility of returns and financing - Largely self-funding through forward sale arrangements  Targeting 3,500-4,000 additional beds in London by 2017 - 9% yield on cost target

  15. Slide 15: Summary

    SUMMARY  London development programme has proven successful - 2012 completions exceeded target returns - 2014 programme substantially de-risked - Significantly accretive to earnings and NAV  Future pipeline of opportunities remains compelling - LSAV formation enhances visibility of returns and fin

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