Securitisation

Unite Group PLC
14 March 2002







Issue Date:            14 March 2002
Embargoed until:   0704hrs


THE UNITE GROUP PLC
SECURITISATION OF 9,961 STUDENT AND KEY-WORKER BED SPACES


The UNITE Group plc ('UNITE') announces its intention to pre-market a
multi-tranche offering of bonds securitising the cashflows of a portfolio of 47
properties comprising 9,961 student and NHS key-worker bed spaces. The offering,
which is expected to raise between £265m and £285m, is a key part of UNITE's
stated strategy and will enable the company to recycle capital out of its
completed properties for application towards the Group's target of 60,000
secured beds by December 2003.

The bonds will be issued by UNITE Finance One plc, an on-balance sheet UK
special purpose vehicle established for the purpose of this financing.  Of the
three tranche offering, over 50% is expected to carry a AAA rating.  It is
UNITE's intention to use the proceeds to repay existing bank facilities and to
provide further working capital to invest in new developments.

As at 31 December 2001, and for the purposes of the securitisation as at 4 March
2002, the portfolio was independently valued by King Sturge at £351 million. The
portfolio comprises   a mixture of properties leased to institutions, let with
the benefit of nominations agreements and let directly to students. The
portfolio represents substantially all of UNITE's completed properties as at 31
December 2001.

UBS Warburg has been mandated to lead manage the offering which is expected to
be formally launched in the next 3 weeks.

Simon Bernstein, Chief Financial Officer said: 'The proposed securitisation is
an exciting step for UNITE and confirms our stated commitment to recycle our
capital out of completed developments and contribute towards funding our growth
target of 60,000 secured beds by December 2003.  It is also expected to reduce
our funding cost and increase the average maturity of our borrowings against
completed assets.'

                                      ENDS


ENQUIRIES:

The UNITE Group plc                             Tel: [phone]
Nicholas Porter, Chief Executive Officer
Simon Bernstein, Chief Financial Officer

UBS Warburg Ltd                                 Tel: [phone]
Caroline Philips/David Newby
Edmund Craston

Redleaf Communications Ltd                      Tel: [phone]
Emma Kane/Scott Convoy                          Mob: [phone]





NOTES TO EDITORS:

•          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



                      This information is provided by RNS
            The company news service from the London Stock Exchange