Placing of New Ordinary Shrs

UNITE GROUP PLC
5 October 1999
 
 
            The Unite Group PLC ('the Company')
                             
         Placing of 1,205,416 new ordinary shares at
                     125 pence per share
 
The   Unite   Group   PLC,  a  highly   focused   company
specialising  in multi-occupancy accommodation  primarily
for  the student sector, announces a placing of 1,205,416
new  ordinary shares of 25 pence each at a price  of  125
pence  per  share  ('the Placing') raising  approximately
£1,506,000  for the Company before expenses.  The  shares
have been placed by Teather & Greenwood on behalf of  the
Company  with  new institutional investors and  represent
4.76%  of  the  enlarged  issued  share  capital  of  the
Company.
 
The  proceeds  of  the Placing will be  used  to  further
enhance the Company's existing working capital.
 
The  new  ordinary shares will rank pari passu  with  the
existing  ordinary shares of the Company and  application
has  been made for the new ordinary shares to be admitted
to  trading on the Alternative Investment Market  of  the
London Stock Exchange.
 
Dealings  in  the  new ordinary shares  are  expected  to
commence on Friday 8th October 1999.
 
Commenting, Nicholas Porter, Managing Director, said:
 
'The new funds will allow Unite to take further advantage
of  the continuing significant opportunities available to
the Company in our fast growing market.
 
'Since our debut on AIM and placing at 85 pence per share
in  June  1999, Unite has continued to deliver  increased
net assets on course with our strategy.  This has led  to
increased appetite from investors.  It is in response  to
this demand that we have placed these new shares with new
investors and so widened our shareholder base.'
 
For further information, please contact:
 
The Unite Group PLC                         0117 907 8100
Nicholas Porter, Managing Director
David Ransome, Finance Director
 
Ludgate Communications                      0171 253 2252
Tim Davis/Denise Peplow
 
Teather & Greenwood Limited                 0171 426 9000
Richard Thompson/Martin Lampshire