41061 Unite AR22 HI-RES WEB-READY - Flipbook - Page 206
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THE UNITE GROUP PLC | Annual Report and Financial Statements 2022
NOTES TO THE FINANCIAL STATEMENTS continued
Section 3: Asset management continued
3.1 Wholly owned property assets continued
Quantitative information about fair value measurements using unobservable inputs (Level 3)
2022
Fair
value
£m
Valuation
technique
Unobservable inputs
Range
Weighted
average
London –
rental properties
1,212.8
RICS Red Book Net rental income (£ per week)
Estimated future rent increase (% p.a.)
Net initial yield/Discount rate (%)
£208–£392
2.0%–4.0%
3.7%–4.5%
£308
3.0%
3.9%
Prime regional –
rental properties
1,105.6
RICS Red Book Net rental income (£ per week)
Estimated future rent increase (% p.a.)
Net initial yield/Discount rate (%)
£148–£243
2.0%–5.0%
4.1%–6.2%
£163
3.0%
4.7%
Major regional –
rental properties
1,130.0
RICS Red Book Net rental income (£ per week)
Estimated future rent increase (% p.a.)
Net initial yield/Discount rate (%)
£99–£178
2.0%–3.0%
4.5%–7%
£128
3.0%
5.7%
Provincial –
rental properties
103.9
RICS Red Book Net rental income (£ per week)
Estimated future rent increase (% p.a.)
Net initial yield/Discount rate (%)
£107–£156
2.0%–3.0%
6.8%–21.5%
£123
3.0%
8.6%
London –
development properties
91.9
RICS Red Book Estimated cost to complete (£m)
Net rental income (£ per week)
Estimated future rent increase (% p.a.)
Net initial yield/Discount rate (%)
£111.4m–£177.1m
£183–£366
3.0%
3.7%
£150.2m
£248
3.0%
3.7%
Prime regional –
development properties
32.4
RICS Red Book Estimated cost to complete (£m)
Net rental income (£ per week)
Estimated future rent increase (% p.a.)
Net initial yield/Discount rate (%)
£17.5m–£58.3m
£171–£235
2.5%–3.0%
4.3%–5.0%
£44.7m
£184
3.0%
4.5%
Major regional –
development properties
64.1
RICS Red Book Estimated cost to complete (£m)
Net rental income (£ per week)
Estimated future rent increase (% p.a.)
Net initial yield/Discount rate (%)
£18.2m–£28.4m
£185–£287
3.0%
4.9%–5.0%
£21.1m
£198
3.0%
4.9%
3,740.7
Investment property –
build-to-rent
71.1
RICS Red Book Net rental income (£ per week)
Estimated future rent increase (% p.a.)
Net initial yield/Discount rate (%)
£359
3.0%
3.9%
£359
3.0%
3.9%
Development property –
build-to-rent
14.3
RICS Red Book Estimated cost to complete (£m)
Net rental income (£ per week)
Estimated future rent increase (% p.a.)
Net initial yield/Discount rate (%)
£12.8m–£20.4m
£170–£614
3.0%
3.9%–4.3%
£15.6m
£312
3.0%
4.03%
Net rental income (£ per week)
Estimated future rent increase (% p.a.)
Discount rate (%)
£99–£191
1%–3%
6.3%
£154
2%
6.3%
3,826.1
Investment property –
leased
Fair value at
31 December 2022
90.3
3,916.4
Discounted
cash flows
