USAF Quarterly Valuation

Unite Group PLC
03 April 2008

Date:                            3 April 2008

On behalf of:                    The UNITE Group plc
                              
Embargoed until 0700hrs





         31 MARCH 2008 VALUATION OF THE UNITE UK STUDENT ACCOMMODATION FUND



The UNITE Group plc ('UNITE') today reports the Estimated Net Asset Value1 as at
31 March 2008 of the UNITE UK Student Accommodation Fund (the 'Fund'). The Fund,
which is invested solely in provincial direct let student accommodation, 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 as at 31 March 2008 was £1.002 per unit,
down from £1.020 at 31 December 2007, reflecting a decrease of 1.8%.  In
arriving at the value of the Fund's units, its property portfolio was
independently valued at £829 million, representing a decline of 0.7% during the
quarter at gross asset value level.



The property portfolio was affected by outward yield movements of 13 basis
points over the quarter, although this was substantially offset by the effect of
rental growth, relating to the forthcoming academic year, reflecting strong
year-to-date reservations performance.



A negative movement in the market value of interest rate swaps held by the Fund
contributed to the balance of the reduction in the value of units.



As at 31 March 2008, reservations for the forthcoming 2008/09 academic year had
been received for 10,987 bed spaces, representing 62% of the Fund's portfolio.
This represents a significant increase compared to the same time in 2007 when
reservations had been received for 53% of the same bed spaces and demonstrates
strong progress upon the reservations level of 55% reported for the Fund's
portfolio at the time of UNITE's preliminary results on 5 March 2008.



At 31 March 2008 UNITE's stake in the Fund stood at 20.7% (31 December 2007;
20.3%), close to its stated investment target of 20%.



Commenting on the quarterly valuation, Joe Lister, UNITE's Chief Financial
Officer said:



'The Fund's performance in the quarter reflects the resilient nature of the
underlying assets. The anticipated pressure on yields has been substantially
offset by the rental growth and strong sales for the forthcoming academic year
and we anticipate this performance comparing favourably to the IPD index.'





Notes:

1 Estimated Net Asset Value excludes any non-capital profits accruing during the
quarter.



                                      ENDS






For further details please contact:



Joe Lister                                             Telephone: [phone]

The UNITE Group plc



Stephanie Highett / Dido Laurimore / Laurence Jones    Telephone: [phone]

Financial Dynamics

Email: [e-mail] / [e-mail] / laurence.jones @fd.com



About UNITE



  • UNITE is the UK's leading provider of student accommodation;
  • UNITE currently operates accommodation for 38,000 students in key
    university markets across England, Wales and Scotland
  • The value of UNITE's completed property portfolio is estimated to be worth
    c.£2.9 billion
  • UNITE has a dedicated website for students who are looking to find
    accommodation at www.unite-students.com
  • UNITE is a founding member of the ANUK Code of Standards for Larger
    Developments, all properties are signed up to this code ensuring high
    standards of accommodation, service and security.





UNITE UK Student Accommodation Fund



At the end of 2006, UNITE established the £1billion UNITE UK Student
Accommodation Fund and sold an initial portfolio to it for £515 million. The
principal objectives of this transaction were:



  • to release capital that was tied up in mature, stabilised investment
    assets for investment into higher added value development activity;
  • to provide UNITE with more growth capital in the medium term; and
  • to diversify UNITE's sources of income by providing a new, valuable
    revenue stream arising from management fees from the Fund.



The Fund helped transform UNITE's business model to that of developer of new
purpose-built student accommodation and manager of funds which own student
accommodation properties operated by UNITE and in which the Group has a
significant minority stake.



The Fund has invested in direct let assets in provincial markets in the UK.





UNITE Student Accommodation, designed for students



  • Dedicated on-site hospitality management team offering 24/7 support to
    customers.
  • A wide choice of rooms available from single studio flats for students who
    want to live on their own, or, typically 5/6 bedroom flats to share with
    friends.
  • Common room facilities, including Sky TV and pool tables, are often used
    for social events. A number of properties offer gyms exclusively for
    residents' use.
  • Rents and availability vary in each town/city and a variety of payment
    plans are in place to suit students.



UNITE focuses on the provision and management of high quality, well-located
student accommodation and hospitality services at affordable prices in strong
higher education markets. UNITE undertakes the planning work, 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 as demand continues to rise
for places on UK Higher Education courses and for high-quality, safe
accommodation.


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