Acquisition

Unite Group PLC
26 June 2000


             UNITE ACQUIRES SEVEN PROPERTIES
             WORTH £37 MILLION ON COMPLETION


The Unite Group plc, the UK's leading specialist provider
of   student   and  NHS  Trust  key  worker   residential
accommodation,  has  today announced the  acquisition  of
seven properties in Bristol and Portsmouth. On completion
of  works,  these will have an end value of £37  million.
These  acquisitions increase the Group's portfolio to  44
properties  and  follow the recent £22  million  property
purchases in Liverpool.

The  Group,  which  operates across the  UK,  today  also
announced  that  it  has  already  signed  a  partnership
agreement with Bristol University. Unite is also  in  the
final  stages of negotiation with University of the  West
of  England,  Portsmouth University and City  of  Bristol
College.   Students  from these  colleges  will  take  up
residence at the properties once they have been converted
into   Unite's   own  brand  of  high   quality   student
accommodation.

*  Jimmyz Site, Portsmouth

A  brownfield  site, formerly containing a public  house,
will  be  redeveloped to provide a new state of  the  art
student  residence providing 312 bed spaces on 14 storeys
for  students  of Portsmouth University.   Completion  is
scheduled for September 2001.

The  site  is  situated close to Portsmouth  University's
main campus and is also near Chaucer House, Unite's first
acquisition  in  Portsmouth. Chaucer  House  has  already
received  planning  permission to convert  the  redundant
office  building  into  almost  400  new  student  rooms,
featuring en-suite bathrooms, internet access and  swipe-
card  door entry systems. Five ground floor retail  units
will also be refurbished to let.

*  Nelson, Drake and Trafalgar Houses, Bristol

Three of the properties, the adjoining Nelson, Drake  and
Trafalgar  Houses,  which have been  previously  used  as
offices, offer a total of 81,000 square foot in the heart
of  Bristol  City  Centre. The ground and  first  floors,
which  comprise 10,000 square foot, are to be redeveloped
for  mixed commercial uses while the upper floors are  to
be  converted into 274 bedrooms.  An agreement  with  the
University  of  the West of England is  to  be  confirmed
shortly.

The  new  student residence, to be completed by September
2001, will be built by Unite's construction business, TNG
Design  and Build, and will be managed, after completion,
by  Unite  fm+, the Group's specialist student facilities
management subsidiary.

*  Gaunts House, Bristol

Gaunts  House, which offers 60,000 square foot of  space,
is  also  in Bristol's city centre.  The building,  which
has  been used as offices, will provide bedrooms for  228
postgraduate students once completed in 2003.

Unite's  scheme  for  Gaunts  House  also  involves   the
conversion of approximately 7,000 square foot  of  ground
floor  space  into  retail, bar and restaurant  amenities
with  the  eight upper floors being dedicated to  student
accommodation.

*  Brownfield site in Hotwells District, Bristol

The  sixth property, located in the Hotwells district  of
Bristol,  is  a derelict deconsecrated chapel,  which  is
being   demolished  to  make  way  for  155  new  student
bedrooms.   Unite's  TNG Design and  Build  is  currently
creating  concepts for the Brownfield  site,  which  will
offer  in  the  region of 50,000 square  foot  of  space.
Completion is scheduled for August 2001.

The  accommodation will be the first to be  taken  up  by
City  of Bristol College, whose new College Green  Campus
in nearby Anchor Road is also being developed by UNITE.

*  39-43 College Green, Bristol

The property at 39-43 College Green has been acquired for
development in 2001. As a prominent building  in  Bristol
City  Centre overlooking the Cathedral and College Green,
it  provides  six  ground floor shops including  basement
storage  and  separately accessed offices on  four  upper
floors.   The  22,000  square  foot  building   currently
produces £172,000 per year.

Commenting  on  these  latest investments,  Nick  Porter,
Chief Executive of Unite, said:

'These prime properties are further evidence of the rapid
progress  we  have made in  strengthening our development
pipeline. We are committed to strong national growth  and
enhancing  shareholder  value through  a  combination  of
development, refurbishment and long term management.'

Note to Editors

The   Unite   Group  is  a  highly  focused   investment,
development  and  management company.   It  is  the  UK's
leading   provider  of  student  accommodation,  offering
academic  institutions and NHS Trust integrated solutions
to their accommodation requirements.

For further information, please contact:

The Unite Group plc
Tabitha Smith, Corporate Communications     0117 907 8100

Ludgate Communications
Roya Nasser/Alex Brog                       0207 253 2252