51.5m Property Acquisition

Unite Group PLC
13 December 2001

                    UNITE ANNOUNCES ACQUISITION OF £51.5M

                        STUDENT ACCOMMODATION SCHEMES

The UNITE Group plc, the UK's leading specialist provider of student and NHS
key worker accommodation services, today announces the acquisition of four
schemes in Plymouth, Portsmouth and Newcastle. The schemes will have an
aggregate end value of £51.5 million on completion.

The four new acquisitions will offer affordable en-suite facilities in all
study rooms and include additional facilities such as fully fitted kitchens,
on-site laundry, games rooms and bike storage.

White Swan, Portsmouth is a mixed-use development on an undeveloped brownfield
site known as White Swan Car Park in Portsmouth city centre. The company plans
to deliver the new 725 bed student residence for occupation by University of
Portsmouth students in Autumn 2003. UNITE is the preferred accommodation
provider to Portsmouth University and this new scheme, which has planning
consent, will bring the total number of UNITE student bed spaces in the city
to 1,400.

St. Andrew and Magnate House, Newcastle. In its second scheme in Newcastle,
UNITE is seeking planning permission to convert this property into 112 student
study bedrooms. The building has a listed art deco frontage and is located in
the popular student area of Gallowgate in the city. Work is anticipated to
start on site in January 2002 with occupation in Autumn 2002. The
accommodation is aimed at second and third year students. UNITE accommodation
in Newcastle now reaches 457 beds.

Exeter Street, Plymouth will house approximately 232 students. The new-build
scheme, which has planning consent, will adjoin UNITE's existing student
accommodation St. Teresa's House which opened earlier in the year. The
accommodation is scheduled to be available for second and third year students
in 2003.

Pearl Assurance, Plymouth will provide 225 student beds through the conversion
of existing vacant office space on the upper floors. The scheme, which has
planning consent, is scheduled for completion in Autumn 2002 and the
accommodation will be aimed at second and third year students. UNITE now has a
total of 570 bed spaces in Plymouth.

On completion, all the above accommodation will be managed by UNITE's
specialist accommodation services operation, delivering a comprehensive
customer service that includes a 24-hour help-line, pastoral care, security
and property maintenance.

Commenting on the announcement, Nicholas Porter, Chief Executive of UNITE,
said:

'UNITE is committed to the rapid expansion of our high quality, value for
money student accommodation brand to meet the needs of students in the 21st
Century. We are delighted to be providing even more new affordable and high
quality accommodation choices for students in the South and North.
Furthermore, the re-development of these well-located brownfield sites are
prime examples of government proposals for urban regeneration, allowing the
development of redundant buildings in central areas for high-density
residential use.'



                                    -Ends-

Regional Student Market

  * Total Full Time Students - Portsmouth = 12,090
  * Total Full Time Students - Plymouth =   17,720
  * Total Full Time Students - Newcastle =  26,810

Source of Data:


  * Higher Education Statistical Association (published 2001)

Editors Notes


  * UNITE was founded in 1991 by Nicholas Porter

  * UNITE is fully listed on the London Stock Exchange

  * UNITE is the UK's leading specialist provider of accommodation services
    for students and key workers.

  * Further information is available at the Company's website at
    www.unite-group.co.uk

Press Enquiries to:

Nicholas Porter, Chief Executive               Tel: [phone]

The UNITE Group plc

Emma Kane, Chief Executive                     Tel: [phone]

Redleaf Communications Ltd                     Mob: [phone]