GLORIOUS CHART

Good buy rec in IC, with further gains likely .

UNITE Group: Oriel Securities upgrades to add.

LONDON (SHARECAST) - Unite Group, the UK's largest developer and manager of student accommodation, has announced an extension of its existing joint (JV) with GIC Real Estate, the real estate arm of the government of Singapore Investment Corp. as well as the creation of a new partnership through which Unite will undertake its next phase of London development activity.

The life of the JV will be extended until September 2022 from its original maturity date of March 2013, and Unite will be able to increase its stake in the JV from 30% to 50% by the 2016 year-end.

Approximately £100m of the JV's existing assets, equivalent to around 25% of its total portfolio at June 30th 2012, will be sold over the next four years. The disposals will be targeted so as to focus it's remaining holdings on its highest quality London locations and the majority of proceeds will then be applied to de-leveraging in the JV.

The JV's existing senior debt facility of £236m, provided by a syndicate of lenders headed by HSH Nordbank, matures in September 2014 and will need to be replaced with a new facility. It is UNITE's intention to have the replacement facility arranged and in place during 2013.

A separate 50/50 JV between the two organisations will be established with the aim of investing £330m in development activity in London. As part of this, Unite will sell two of its existing London development projects to the new JV for cash consideration in line with previously disclosed valuations on completion.

The two JVs can be combined once Unite increases its stake in the original JV to 50%.

"From a strategic perspective the transaction allows Unite to accelerate its investment in London development activity at a time when potential returns are particularly compelling and the scale of opportunity is greater than Unite could fund alone," the firm said.

The share price rose 2.96% to 261p by 08:42.

Done very well, sold my holding

Bought some first thing and already in profit.

Were too tempting to not buy.

Liked the Midas article this weekend.

Chart looks like its setting up an up trend channel.

UTG UNITE Group PLC

Gone long on UTG just thinking of all those extra UNI Places this next year, they are going to need more accomadation.

Friday tips round-up: Playtech, Unite Group

Fri 29 August 2014 08:39

A A A
Betting and gaming software provider Playtech's first half results showed the company is firing on almost all cylinders, but much is already baked into the share price, writes The Times's Tempus. Sales at its casino division rose by 29%, driven by multiple customer wins in various territories, accompanied by a 35% increase at its sports business. However, the expansion in the latter was flattered by the World Cup and is not a sustainable rate of growth. Bingo and poker on the other hand are facing stiff competition.

The company nevertheless is left in the enviable position of having to decide how best to deploy its €366m cash pile. The board is hoping that the spread of regulation later in the year might present it with opportunities for investment. Even so, while the technology outfit is growing fast and regulatory changes offer enormous potential for gaming markets, on 19 times' earnings the stock is "not cheap, and probably only a hold," says Tempus.

Property investing is about yield, borrowing cheaply and obtaining a stable stream of income with those funds, and Unite Group is excelling at it. Over the first six months of the year the provider of student accommodation has managed to cut the average cost of its debt by 60 basis points to 4.7%. In parallel, the average maturity of that debt has been extended to over seven years and is almost all on fixed terms. Meanwhile, its portfolio of assets yields a steady 9% to 10%.

Furthermore, the company is benefiting from the increased rates of growth in university attendance. Unite expects to add another 1,600 beds, mainly in London, to its portfolio over the coming two years. It should come as little surprise therefore that the company is set to hit its earnings target of 18p per share a year early. The shares only offer a 1.3% dividend yield but what you are paying for in this case is the expansion in the net asset value of the portfolio - which is reasonable. The stock still looks attractive, so 'buy' says The Daily Telegraph's Questor column.

Please note: Digital Look provides a round-up of news, tips and information that is impacting share prices and the market. Digital Look cannot take any responsibility for information provided by third parties. This is for your general information only as not intended to be relied upon by users in making an investment decision or any other decision. Please obtain a copy of the relevant publication and carry out your own research before considering acting on any of this information.

16 Sep 2014 Unite Group PLC UTG Liberum Capital Buy 0.00 433.00 516.00 523.00 Reiterates

SP Target 516p