Unite Group sees 2009-10 rental growth up

LONDON (Reuters) - Student landlord Unite Group (UTG.L) on Friday said 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 pounds financing facility with Nationwide. It now has no material facilities requiring refinancing before May 2011.

Unite reported a continued strong lettings performance for 2009-10 academic year, with like-for-like reservations up 1 percent to 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 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)

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