Statement re Partnership

Unite Group PLC
5 September 2000
                             

 UNITE TO PROVIDE NHS TRUST WITH ACCOMMODATION SOLUTION

UNITE,   the   UK's   leading  specialist   provider   of
accommodation services for students and NHS key  workers,
has   today  announced  a  significant  partnership  with
Gateshead  NHS  Trust,  as referred  to  in  the  interim
results.

The  company has been nominated as the preferred  partner
to  Gateshead NHS Trust and is currently negotiating with
the  Trust to acquire a one hundred and twenty five  year
leasehold  interest  on three purpose  built  residential
properties at the main Queen Elizabeth Hospital  site  in
Gateshead.

The  properties provide 90 beds for NHS Trust  staff  and
medical  students as well as doctors and  nurses  at  the
hospital.   On   completing  the   acquisition   of   the
properties,   UNITE   will  immediately   embark   on   a
comprehensive   refurbishment  programme.   Subsequently,
UNITE's  Facilities Management operation will  take  over
the  management  and maintenance of the residences  on  a
long term basis.

UNITE's joint venture with Peabody Trust, London's oldest
and  largest charitable Housing Trust is pioneering a new
approach to the provision of key worker accommodation for
NHS   Trusts.   Peabody  UNITE  already  has  partnership
agreements  with  Barts and The London  NHS  Trust  where
their  quality and affordable accommodation schemes  have
become model solutions for other London NHS Trusts.

Commenting  on the partnership with Gateshead NHS  Trust,
Nick Porter, Chief Executive of UNITE said:

'This  new partnership is a significant milestone in  our
nationwide roll-out strategy and demonstrates our success
in  providing residential accommodation solutions for NHS
Trust key workers.'

UNITE's  philosophy is to form lasting partnerships  with
NHS  Trusts and academic institutions, providing a  range
of   integrated  solutions  to  meet  their   residential
accommodation requirements.


EDITORS NOTES:

UNITE  is  building critical mass across the UK.  In  May
UNITE  announced  the acquisition of a portfolio  of  six
student  and  key  worker residences in Liverpool  for  a
total cash consideration of £22 million.


For further information, please contact:

The Unite Group plc       On 5th September: 020 7253 2252
Nick Porter, Chief Executive    Thereafter: 0117 907 8100

Golin/Harris Ludgate
Roya Nasser                                 0207 253 2252