£5.25m Manchester Acquisition

Unite Group PLC
21 February 2000


    Unite steps-up geographical expansion with £5.25
             million Manchester acquisition
                            
The  Unite Group plc ('Unite'), the specialist provider
of multi-occupancy accommodation for the student sector
and  NHS trusts, is pleased to announce the acquisition
of  two  properties in Manchester,  for  a  total  cash
consideration of £5.25 million.

The  properties,  which were purpose-built  in  1996/7,
comprise  two  halls of residence with a total  of  193
bedrooms,  close to Manchester Metropolitan University.
Unitefm+,  the Group's facilities management arm,  will
manage   the  properties,  which  are  let  direct   to
students.

The  market  value  of  the two properties  immediately
following  acquisition  is £5.6 million,  providing  an
enhancement  to  Unite's net assets of  £350,000.   The
accommodation  is expected to generate an  initial  net
rental  income  of  £500,000 per  annum,  providing  an
initial  net yield of 8.9%, which is earnings enhancing
in the current financial year.

NatWest  Bank plc provided the senior debt finance  for
the   purchase,   representing  a  new  and   important
relationship in the Group's funding strategy.

The    Manchester   acquisition   represents    several
milestones  in the Group's development: it  is  Unite's
first  purchase of a completed development from a third
party;  its  first  direct let scheme;  and  the  first
scheme  implemented by the Group's Leeds office.   This
office,  Unite's  third after Bristol and  London,  was
opened last September.

The  acquisition builds upon Unite's regional expansion
in  the  South of England, where the Group has recently
acquired  two  further  sites  for  redevelopment.   In
Portsmouth, Unite has acquired Chaucer House, a  1970's
office  building  for  £2.75m,  which  it  intends   to
redevelop to provide modern, high quality accommodation
for  over  400  students. Completion  is  expected  for
September 2001.

In  Exeter,  Unite  has acquired Northernhay  House,  a
prominent  building  in the city  centre,  for  £2.25m,
which  it will redevelop to provide a student  hall  of
residence  for  the Exeter campus of the University  of
Plymouth.  Unitefm+ will be responsible for all aspects
of  property  management  after  completion,  which  is
scheduled for September 2000.

Nick Porter, Managing Director of Unite, commented:

'We   are   delighted  to  announce  this   significant
acquisition.  In  line  with  our  stated  strategy,   we
continue   to  focus  on  our  core  marketplace   whilst
expanding nationally.'


For further information, please contact:

The Unite Group plc                        0117 907 8100
Nicholas Porter, Managing Director

Teather & Greenwood Limited                 0171 426 9516
Martin Lampshire

Ludgate Communications                     0171 253 2252
Tim Davis/Denise Peplow