Unite student property fund grows 4.1 percent

LONDON (Reuters) - Unite Group (UTG.L), Britain's biggest developer of student housing, said the net asset value of its flagship fund rose 4.1 percent in the second quarter, bucking turbulent conditions in the broader property market.

The Estimated Net Asset Value of the Unite UK Student Accommodation Fund at June 30 rose to 71.2 pence per unit versus 68.4 pence per unit at end-March.

The property portfolio was independently valued at 869 million pounds in line with the March valuation but continued rental growth in respect of the 2009/10 academic year resulted in a marginal 0.03 percent increase in the underlying gross property values during the second quarter.

"The fund's strong relative performance in the second quarter of 2009 highlights the continued resilience of student accommodation compared to the broader real estate sector," Unite's Chief Financial Officer Joe Lister said.

(Reporting by Sinead Cruise; Editing by Hans Peters)

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