UPDATE 1-Unite Group sees 2009-10 rental growth up

* Continues to operate comfortably within debt covenants

* Sees rental growth up 7-10 pct LFL in 2009-10

* Making progress on asset sale programme

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LONDON, May 15 (Reuters) - British student landlord Unite Group (UTG.L) said on Friday it was continuing to operate comfortably within all its debt covenants and sees like-for-like rental growth in the 7-10 percent range for the 2009-10 year. In an interim management statement the company also said it had completed a new five-year, 100 million-pound ($151 million) financing facility with Nationwide. It now has no material facilities requiring refinancing before May 2011.

Unite reported a continued strong lettings performance for the 2009-10 academic year with like-for-like reservations up 1 percent at 74 percent.

Unite was also progressing its 150 million pounds asset and land sales programme, despite challenging market conditions, and has so far sold 38 million pounds ($57.48 million) worth, with another 14 million pounds worth in solicitors' hands.

Chairman Geoffrey Maddrell confirmed he would step down at Friday's annual meeting, adding he would be replaced by Phil White. (Reporting by Andrew Macdonald; Editing by Greg Mahlich) ($1=.6611 pounds)