Proposed Acquisition

Unite Group PLC
31 May 2000

                           
 Proposed acquisition of a portfolio of properties in
                       Liverpool
                           
                           
The  Unite  Group plc ('Unite' or 'the Company'),  the
UK's    leading   specialist   provider   of   student
residential accommodation and an independent  provider
of  key  worker accommodation to NHS trusts, announces
that  it  has  agreed  to acquire five  properties  in
Liverpool with an option over a sixth property in  the
same  location  (the 'Portfolio').  The  maximum  cash
consideration payable is £22.0 million.

Four  of the properties in the Portfolio are completed
properties with a total of 660 bed spaces and two  are
development properties, which are expected to  provide
between 167 and 180 bed spaces, when completed.

The  acquisition is conditional upon the  approval  of
Unite's shareholders.  On the basis that this approval
is   obtained,  Unite  expects  to  acquire  the  four
completed   properties  in  June   this   year.    The
acquisition of the two development properties is  also
dependent  on satisfactory completion of the  relevant
building  work and, in one case, on Unite deciding  to
exercise   its   option  to  acquire   the   property.
Completion  of  the  two  development  properties  and
Unite's  acquisition of them is expected in  September
2000  and September 2001.  The vendor of the Portfolio
will  retain  the  development  risk  for  these   two
properties.

All  six  properties in the Portfolio are  located  in
central  Liverpool  adjacent  to  the  main  Liverpool
University campus, and in proximity to Liverpool  John
Moores  University  and the main Liverpool  hospitals.
The four completed properties are already directly let
to  students and, to a lesser extent, NHS key workers.
All  the  properties are freehold  or  long  leasehold
tenure.

The consideration for the four completed properties is
£17.1  million  in  cash  (of which  a  non-refundable
deposit  of  £350,000 has already been paid)  with  an
additional consideration of up to £4.9 million in cash
to  be  paid  for  the two development  properties  on
satisfactory completion of the relevant building work.

The   acquisition  will  initially  be  financed  from
existing cash resources.  Following completion, it  is
intended that the Portfolio will be re-financed  by  a
new bank facility.

Taking  into  account  certain of Unite's  initiatives
which  it can deliver in the short term, the Portfolio
has  been independently valued at £25.3 million on the
basis  that the two development properties  have  been
fully completed (of which £2.95 million relates to the
development property under option).  After taking into
account  the  costs  of acquiring the  Portfolio,  the
acquisition  of  the  four completed  properties  will
provide an enhancement of £1.5 million to Unite's  net
assets  in  the current financial year and  a  further
£1.1  million  enhancement when  the  two  development
properties are completed and acquired by Unite.

The  Portfolio  is  expected to  generate  net  rental
income  of  £1.48  million per  annum  from  the  four
completed  properties, rising  to  £1.89  million  per
annum   when   the  two  development  properties   are
completed and acquired by Unite, providing an  initial
net  yield  of  8.7  per  cent.   The  acquisition  is
expected  to  be  earnings enhancing  in  the  current
financial year.

The acquisition of the Portfolio significantly expands
Unite's  operations  in  the  North  of  England  and,
together with the properties acquired in Manchester in
February  2000, creates an important regional presence
and a platform for continued growth in this area.

In  addition  to  the  above Portfolio,  Unite  is  in
exclusive  discussions with the vendor in relation  to
two  strategically important city centre sites in  the
North,  which  could provide in excess  of  1,000  bed
spaces within one to two years.

A   circular  giving  details  of  the  Portfolio  and
convening  an  extraordinary general  meeting  of  the
Company will be sent to shareholders shortly.

Nicholas Porter, Chief Executive of Unite, commented:

'We  are  delighted  to  have secured  this  important
acquisition.  The portfolio is well located in a  city
with  high  demand  for student  and  NHS  key  worker
accommodation.  The acquisition will provide an uplift
of  £1.5  million to Unite's net assets in the current
financial  year, with more to come in due course,  and
also gives us a strong platform from which to continue
to develop our operations in the North.

At  the time of our £38.5 million fundraising in March
this  year, we set out a strategy of focused  national
expansion.  This transaction is directly in line  with
that strategy.'

                           
For further information, please contact:

The Unite Group plc
Nicholas Porter, Chief Executive         0117 907 8100

Robert Fleming & Co. Limited
Edward Banks                             020 7638 5858

Ludgate Communications Limited
Tim Davis / Alex Brog                    020 7253 2252