Quarterly Valuation

Unite Group PLC
08 October 2007

8 October 2007



 QUARTERLY VALUATION OF THE UNITE UK STUDENT ACCOMMODATION FUND - 2.5% RISE IN
                                PROPERTY VALUES



The UNITE Group plc ('UNITE') today reports the Estimated Net Asset Value* as at
30 September 2007 of the UNITE UK Student Accommodation Fund (the 'Fund').  The
Fund, which is invested solely in 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 30 September 2007 was £1.072 per unit
(30 June 2007; £1.054, 31 December 2006; £0.945 per unit), representing an
increase of 1.6% over the quarter and 13.4% over the year to date.  In arriving
at the value for units in the Fund, its property portfolio was independently
valued at £544.3 million, representing an underlying increase in value over the
quarter of 2.5% (6.5% year to date).  This increase in property values over the
quarter was predominantly due to rental growth, although an element was
attributable to a 6 basis point reduction in the average stabilised yield of the
portfolio, which now stands at 5.65%.  The remainder of the change in Estimated
Net Asset Value over the period reflects a negative movement in the market value
of interest rate swaps held by the Fund and an allowance for performance fees
payable to UNITE.



Since 30 September, and as reported on 4 October, the Fund has acquired a
further £81.8 million of properties from UNITE or entities in which UNITE has a
substantial stake.  These assets were acquired at open market value, reflecting
an average stabilised yield of 5.70%, and are not included in the above
valuation.





Note:

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



                                      ENDS



For further details please contact:


Tabitha Aldrich-Smith                                Telephone: [phone]
UNITE Group plc                                      Email: [e-mail]


Stephanie Highett/Dido Laurimore/Lauren Mills        Telephone: [phone]
Financial Dynamics                                   Email: [e-mail] /
                                                     [e-mail] / [e-mail]





About UNITE



  • UNITE is the UK's leading provider of student accommodation
  • UNITE currently operates accommodation for 38,000 students in 135
    properties, geographically spread in key university markets across England,
    Wales and Scotland
  • The value of UNITE's completed property portfolio is estimated to be worth
    £1.6 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 £1 billion 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.



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.




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