UNITE says fund has 30 million pounds in Landsbanki

LONDON (Reuters) - Student accommodation provider UNITE Group said Tuesday a fund in which it has a 20 percent stake has 30 million pounds deposited with Landsbanki Islands, the Icelandic bank which has been put into a form of receivership.

The funds belong to UNITE UK Student Accommodation Fund, a specialist investment vehicle to which UNITE acts as manager and in which it has a 20 percent stake.

UNITE said the capital represents 3.5 percent of the total assets of the fund, while UNITE itself does not have any deposits with Landsbanki, which is now under the control of the Icelandic Financial Supervisory Authority.

UNITE said: "On behalf of USAF, UNITE is pursuing all available channels for the recovery of these funds, but the extent and timing of recovery is uncertain at the present time."

Should all the money be irrecoverable, UNITE said the overall investment capacity of the fund at its target gearing would be reduced by 67 million pounds to 313 million pounds.

The news follows a slew of UK financial entities reporting large amounts deposited with collapsed Icelandic banks.

Britain's Local Government Association has estimated that 108 British local authorities have 750 million pounds invested with Icelandic banks. London's police force, its transport network and charities across the country also have investments with them.

(Reporting by Rupert Winchester; Editing by Rosalba O'Brien)