Net Asset Value(s)

Unite Group PLC
09 January 2008




Date:      9 January 2008



    31 DECEMBER 2007 VALUATION OF THE UNITE UK STUDENT ACCOMMODATION FUND


The UNITE Group plc ('UNITE') today reports the Estimated Net Asset Value1 as at
31 December 2007 of the UNITE UK Student Accommodation Fund (the 'Fund').  The
Fund, which is invested solely in direct let student accommodation, was launched
on 15 December 2006 and UNITE acts as its manager as well as retaining a
co-investment stake.

The Fund's Estimated Net Asset Value as at 31 December 20072 was £1.020 per
unit, reflecting an increase of 8.0% for the full year (31 December 2006; £0.945
per unit).  In arriving at the value for units in the Fund, its property
portfolio was independently valued at £834.5 million, representing an increase
of 4.4% for the full year.

The valuation of the Fund's underlying portfolio, however, declined by 2.1%
during the fourth quarter and this resulted in a 4.8% decline in the value of
the Fund's units from their 30 September 2007 valuation of £1.072. Key factors
in the Fund's valuation were:

• a yield expansion of 18 basis points in the fourth quarter;

• costs relating to the acquisition of a £220.3 million portfolio of assets 
  from UNITE as announced to shareholders on 13 December 2007;

• Negative movements in the market value of interest rate swaps held by the 
  Fund; and

• an allowance for performance fees payable to UNITE.


The yield expansion booked in the quarter effectively offset the rental uplift
achieved in the second half of 2007.  As a result, the Fund's underlying
property portfolio is now valued broadly in line with its 30 June 2007
valuation.

Following the portfolio acquisition, and in line with its stated strategy,
UNITE's stake in the Fund now stands at 20.3% (30 September 2007; 22.0%), close
to its stated investment target of 20%.


Note:

1 Estimated Net Asset Value excludes any non-capital profits accruing during the
  quarter.

2 Adjusted to add back the income distribution relating to fourth quarter
  earnings made prior to 31 December 2007.



                                     ENDS



For further details please contact:

Mark Allan                                              Telephone: [phone]
The UNITE Group plc

Stephanie Highett / Dido Laurimore / Laurence Jones     Telephone: [phone]
Financial Dynamics
Email: [e-mail] / [e-mail] / laurence.jones @fd.com


About UNITE

  • UNITE is the UK's leading provider of student accommodation;
  • UNITE currently operates accommodation for 38,000 students in key
    university markets across England, Wales and Scotland
  • The value of UNITE's completed property portfolio is estimated to be worth
    £2 billion
  • UNITE has a dedicated website for students who are looking to find
    accommodation at www.unite-students.com
  • UNITE is a founding member of the ANUK Code of Standards for Larger
    Developments, all properties are signed up to this code ensuring high
    standards of accommodation, service and security.


UNITE UK Student Accommodation Fund

At the end of 2006, UNITE established the £1billion UNITE UK Student
Accommodation Fund and sold an initial portfolio to it for £515 million. The
principal objectives of this transaction were:

  • to release capital that was tied up in mature, stabilised investment
    assets for investment into higher added value development activity;
  • to provide UNITE with more growth capital in the medium term; and
  • to diversify UNITE's sources of income by providing a new, valuable

    revenue stream arising from management fees from the Fund.

The Fund helped transform UNITE's business model to that of developer of new
purpose-built student accommodation and manager of funds which own student
accommodation properties operated by UNITE and in which the Group has a
significant minority stake.


UNITE Student Accommodation, designed for students

  • Dedicated on-site hospitality management team offering 24/7 support to
    customers.
  • A wide choice of rooms available from single studio flats for students who
    want to live on their own, or, typically 5/6 bedroom flats to share with
    friends.
  • Common room facilities, including Sky TV and pool tables, are often used
    for social events. A number of properties offer gyms exclusively for
    residents' use.
  • Rents and availability vary in each town/city and a variety of payment
    plans are in place to suit students.


UNITE focuses on the provision and management of high quality, well-located
student accommodation and hospitality services at affordable prices in strong
higher education markets. UNITE undertakes the planning work, development and
management of sites, often working closely with the Universities and Colleges to
deliver accommodation for students across all ages and nationalities. UNITE
developments typically show high occupancy levels as demand continues to rise
for places on UK Higher Education courses and for high-quality, safe
accommodation.




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