- Student accommodation developer Unite said it had extended a London-focused joint venture with GIC by 10 years to September 2032.

The company also announced that it had agreed to settle its performance fee from the London Student Accommodation Joint Venture (LSAV) in cash during the fourth quarter of 2021.

Unite said the performance fee would be based on valuations and cashflows to 30 September 2021.

It added that its share of the performance fee was expected to be about £30 million-to-£40 million, of which £9.2 million had already been recognised in its balance sheet as at 31 December.

Unite's remaining share of the performance fee was expected to be about £20 million-to-£30 million, or 5-8p per share, to be recognised in 2021.

The performance fee would be a capital receipt and was not included in the group's EPRA earnings per share guidance of 27-30p for 2021.

Unite said it would be entitled to receive a performance fee from LSAV equivalent to 12.5% of returns in excess of 8% per annum in the period from 2021 to 2032.

LSAV was established in September 2012 with a 10-year term maturing in September 2022.

'Unite and GIC have agreed the 10-year extension following a successful partnership that has delivered strong development returns and growth in rental income,' the company said.

Both Unite and GIC would retain a 50% equity stake in LSAV, which had net assets of £814 million as at 31 December 2020.

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