Re: USAF

Unite Group PLC
01 May 2007

1 MAY 2007


The UNITE Group plc ('UNITE' / 'Group')

UNITE CONCLUDES SECOND FUND RAISING IN £1 BILLION UK STUDENT ACCOMMODATION FUND

The UNITE Group plc ('UNITE'), the UK's leading commercial provider of student
accommodation, is pleased to announce the successful conclusion of the second
closing of the UNITE UK Student Accommodation Fund ('USAF'/ the 'Fund'). UNITE
has secured the maximum level of third party equity ensuring the Fund is fully
capitalised to reach its £1 billion investment target.

This additional fund raising, which was oversubscribed, was effected through the
acquisition of units from UNITE at a 7.5% premium to initial issue price, as
well as through securing commitments to subscribe for additional equity.  In
line with the Company's previously stated strategy, UNITE's stake in the Fund
has now reduced to 29.3%, representing a co-investment equity stake of £72.7
million.

The total amount of equity commitments to the Fund received from leading third
party institutional investors now totals £370 million, an increase of £72.5
million above the level of commitments in place at the time of the first
closing, announced in December 2006.  Approximately 48 per cent of these
commitments have been drawn down to fund the acquisition of the £515 million of
properties contributed to the Fund by UNITE as a seed portfolio. The remaining
52 per cent of equity commitments will be available to fund the purchase of
future assets.

USAF is structured as an open-ended property fund which focuses on owning,
acquiring and managing UK direct let student accommodation. The Fund is on
target to own student accommodation property worth over £1 billion. It has
exclusive rights over a significant part of UNITE's extensive development and
investment programme.

Commenting, Tony Harris, UNITE's Chief Financial Officer, said:

'Since we launched the Fund in December 2006 it has attracted strong interest
and demand from leading institutional investors, a number of whom participated
in both the first and second closing. For investors keen to secure exposure to a
newly established and growing alternative asset class, USAF offers compelling
access to UNITE's proven track record for sourcing and delivering new properties
and managing them to extract superior returns. For UNITE, the Fund provides a
new, valuable revenue stream in the form of management fees from the Fund.'

                                      ENDS

For further details please contact:

Enquiries:

UNITE
Tony Harris, Chief Financial Officer                             0117 302 7000
Tabitha Aldrich-Smith                                            0117 302 7000

Financial Dynamics
Stephanie Highett / Dido Laurimore                               020 7831 3113


Notes to editors:

•   USAF 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 at 31 March 2007 was £1.011 per unit 
    (31 December 2006: £0.945 per unit), representing an increase of 7.0% over
    the quarter. In arriving at a value for units in the Fund, the Fund's 
    property portfolio was independently valued at £516.8 million as at 31 March 
    2007, representing an underlying increase in value over the quarter of 2.4%.

•   UNITE is the UK's leading student hospitality company.  Listed in the FTSE 
    250 index of the London Stock Exchange and managing a property portfolio of 
    £1.6 billion located across the UK, the Group focuses on the provision and 
    management of high quality, well-located student accommodation and 
    hospitality services in strong higher education markets.

•   UNITE delivers the real student experience, whilst at the same time helping 
    to regenerate cities as part of the community and contributing to the 
    improvement of the country's housing.  It undertakes the planning, 
    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 and robust rental growth as demand continues to rise for places in UK 
    Higher Education and for safe, high quality accommodation for students.

Further information on UNITE is available at www.unite-group.co.uk


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