Re Joint Venture

Unite Group PLC
14 March 2005

Date:                 14 March 2005
On behalf of:         UNITE Group plc ('UNITE')
Embargoed until:      0700hrs

The UNITE Group plc
Announcement of £350 million Joint Venture


The UNITE Group plc, the UK's largest student landlord, is pleased to announce
that it has today formed a £350 million joint venture ('the Venture') with GIC
Real Estate Pte Ltd ('GIC RE') to develop and operate student accommodation in
the capital cities of London, Edinburgh, Dublin and Belfast (the 'Target 
Cities').  GIC RE is committing £49.0 million of equity for a 70% holding in the
venture whilst UNITE will commit £21.0 million in exchange for a 30% interest.

Simultaneously with the formation of the venture, UNITE has today also sold four
of its existing completed assets in the Target Cities, comprising 723 bed
spaces, to the Venture for cash consideration of £47.5 million payable
immediately.  69% of the completed bed spaces are let directly to students
whilst the remainder are operated under a university lease.  In total, the
completed portfolio generates net rents of £2.85 million per annum.  Three of
the properties are located in London and the other in Edinburgh and they were
collectively independently valued at £46.9 million as at 31 December 2004.

Two further London-based properties, both in the course of construction and
comprising 391 beds (the 'Development Properties'), have also been sold to the
Venture.  The additional cash consideration attributable to these assets is
£12.6 million payable immediately.  They are scheduled to reach practical
completion in summer 2005 and are expected to generate combined net rents of
£1.35 million in the first year of operation.  The Development Properties were
valued at £12.2 million as at 31 December 2004 and both are being built using
modular construction techniques incorporating components from UNITE's off-site
manufacturing facility.

The joint venture, which has an initial term of 8 years, aims to build upon this
seed portfolio (worth £78.4 million upon completion) and develop a £350 million
portfolio of purpose built student accommodation in the Target Cities over the
next three years.  UNITE will then operate the assets for the duration of the
Venture.

In addition to its 30% stake in the new entity, UNITE will also act and receive
fees as fund manager for the duration of the venture, as development manager
with responsibility for all acquisition and development activities, and as
property manager in respect of all completed assets.  All properties will
continue to operate under the UNITE brand and the property management agreement
is for a duration of fifteen years.

UNITE will be using the sales proceeds of £60.1 million predominantly to repay
existing borrowing and fund its initial equity contribution to the Venture.
After accounting for this application of funds, the remaining £6.7 million will
be retained by UNITE to invest in its ongoing development programme across the
UK in due course.

Macquarie Capital Partners Limited acted as exclusive financial advisor to UNITE
and senior debt is being provided jointly by Royal Bank of Scotland plc and
Barclays Bank plc.

Commenting on the transaction, Mark Allan, Group Finance Director at UNITE,
said:

'We are delighted to have secured this new partnership with GIC RE.  It
represents a significant further step for the Group, which is exactly in line
with our financing strategy and which underlines the continued emergence of
student accommodation as an investment proposition, particularly for direct let
properties.

He continues, 'London and Edinburgh are important existing markets for UNITE
with considerable potential for growth.  However, in the past, the capital
intensive nature of these markets has restricted us from leveraging these
opportunities fully.  This transaction removes those capital constraints and
also provides fresh capital for expansion into the equally exciting markets of
Dublin and Belfast.'

Commenting the transaction, Dr. Seek Ngee Huat, President of GIC RE said:

'The market for student accommodation in the capital cities of London,
Edinburgh, Dublin and Belfast is underpinned by strong fundamentals. We believe
that this joint venture presents a good opportunity for us to work with an
established and leading player to realise the full potential of this emerging
sector.'

ENDS

Enquiries to:

UNITE Group plc
Mark Allan, Group Finance Director                              [phone]

GIC Real Estate Pte Ltd
Ms Tan Chor Hwa, Executive Vice President                         (65) 6889 888
Head, Administration and Corporate Affairs

Redleaf Communications Ltd
Emma Kane                                                       [phone]/
                                                                  07876 338 339

Notes to Editors:

About UNITE
•   UNITE was founded in 1991 by Nicholas Porter
•   Further information on UNITE is available at the Company's website:
    www.unite-group.co.uk



About GIC RE

•   Headquartered in Singapore
•   GIC RE is the real estate investment arm of Government of Singapore
    Investment Corporation (GIC) that manages the foreign reserves of Singapore.

•   GIC RE manages a multi-billion dollar portfolio of direct and indirect
    property investments worldwide.
•   Further information on GIC RE is available at the Company's website:
    www.gicre.com



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