Statement re Investment

Unite Group PLC
2 August 2000
                            
                            
LONDON NHS WORKERS GAIN NEW AFFORDABLE HOMES WITH PEABODY
          UNITE'S £33 MILLION INVESTMENT

The UNITE Group plc, the UK's leading specialist provider
of  accommodation services for students and key  workers,
has today announced that its joint venture operation with
Peabody  Trust, Peabody UNITE, is developing two  schemes
in   London,  which  will  be  worth  £33.3  million   on
completion  and  will  create  more  than  500   quality,
affordable bed spaces for Barts and The London NHS  Trust
workers in Whitechapel and Forest Gate, East London.

* Whitechapel, East London
  This  flagship new-build development, on  a  brownfield
  site,    incorporates   innovative   modular   building
  techniques  and  is  currently  under  construction  by
  UNITE's  in-house design and build team.  On completion
  in  November,  it  will provide quality  Peabody  UNITE
  homes for 256 key workers.

* Donald Hunter House, Forest Gate, East London
  Donald   Hunter  House,  formerly  a  redundant  office
  block,  is being converted to provide 74 self-contained
  two   to  five  bedroom  flats  for  257  key  workers.
  Completion  of the development is scheduled for  Autumn
  2000.

As  part of the development, 20,000 square foot of ground
floor  retail  space will be created, servicing  the  new
residents  and  providing  new amenities  for  the  local
community.   In  addition,  the facilities  will  include
swipe  card door entry systems, state of the art security
and internet access in every room.

The schemes will be managed by Peabody UNITE's specialist
facilities    management    operation,    delivering    a
comprehensive service that includes a 24-hour help  line,
welfare facilities and on-going property maintenance.

Commenting  on  the  developments, Tim  Butler,  Managing
Director of Peabody UNITE said:

'  Peabody UNITE has expanded significantly over the past
six  months.   We aim to continue the expansion  of  this
business through further acquisitions and development  of
properties  across  the country to  provide  quality  yet
affordable homes for key workers.

'We  are  also  delighted  that in  converting  redundant
office  buildings such as Donald Hunter House  in  Forest
Gate,  we can play a vital part in regenerating important
urban areas.'

                            
For further information, please contact:

The  Unite  Group  plc                                020 7202 8391
Tim Butler, Managing Director

Golin/Harris Ludgate Communications                   020 7216 4548
Roya Nasser