Trading Statement

Unite Group PLC
11 July 2007

Date:                 11 July 2007

On behalf of:         The UNITE Group plc ('UNITE' / 'Group')


The UNITE Group plc

Trading Update


The UNITE Group plc, the UK's leading provider of student accommodation, today
provides a trading update prior to entering its close period.


In line with the Board's expectations, this update reports good progress in the
year to date, delivering the following key achievements since the year end:


  • The secured pipeline for post 2007 completions has increased by 38%.
    10,772 beds worth an estimated £1,056m on completion will be delivered
    between 2008-2011. (2006 year end total: 7,787 beds with an estimated
    completed value of £624m).

  • Planning has been achieved on ten new schemes of which four are in London
    and six are in key market cities across the rest of the UK.

  • UNITE has secured its first sites in three new markets: Reading, Cambridge
    and Oxford.

  • Room reservations for the forthcoming year are in line with expectations
    at 75% as of 30th June 2007.

  • The market remains strong: UCAS reports an increase in university
    applications for this year of 5.2% over 2006/07.


The market


The Group is expecting to benefit from an increase in the number of students
applying to UK universities. The latest figures from UCAS shows an increase in
applications for full-time undergraduate courses at UK higher education
institutions of 5.2% for the 2007/08 academic year compared to 2006/07,
representing 446,765 applications in April 2007.


An important and growing area for the Group's business is the demand for
accommodation from foreign students. The number of people applying from EU
countries (other than the UK) is up by 14.3% and the number of applications from
countries outside of the EU is up 5.5% since last year.  China, Hong Kong and
India remain amongst our biggest contributors of applicants outside of the EU.


Forecasts for the demand for student accommodation show growth to 2011 and
beyond, and this indicates a greater resilience to the economic and property
cycles compared to traditional commercial property sectors. As demonstrated by
the progress of The UNITE UK Student Accommodation Fund, student accommodation
is now firmly recognised as an investment asset class. The Group is now well
placed to capitalise on the renewed focus on alternative asset classes, which
continue to deliver rental growth performance.


Planning and Development


UNITE has increased its pipeline of secured beds for delivery in 2008 - 2011 by
2,985 beds (£432m estimated completed value) to a total of 10,772 beds with an
estimated value of £1,056m on completion. This divides between 3,083 beds (£502m
estimated completed value) in London and 7,689 beds (£554m estimated completed
value) across the rest of the UK.


The business is focused on increasing its presence in London and has secured,
since the year end, 623 new beds in the capital with an estimated value on
completion of £170 million.  A significant proportion of these beds (458 beds
with an estimated value on completion of £129m) have been secured in the UNITE
Capital Cities Joint Venture and with this the Joint Venture is fully allocated
with assets. Across the rest of the UK the secured pipeline has increased by
2,119 beds with an estimated value on completion of £139 million since 31
December 2006.


Recently, in line with our strategy to focus development activity in high value
markets, UNITE has opened up three important new university cities with new
schemes secured for future delivery in Oxford, Cambridge and Reading.


The Group has also continued to demonstrate its expertise in obtaining planning
consents, with ten new consents in the year to date, of which four are for new
schemes in London and six are for new schemes across the rest of the UK.


Reservations performance


The Group expects to operate 37,688 bedrooms in the forthcoming academic year,
an increase of 11% over 2006/07. This includes new openings of 3,266 beds with
an estimated completed value of £214m and includes the acquisition of 1,627 beds
predominantly from the Base Ltd. portfolio. In addition we have sold or closed
for redevelopment a further 1,149 beds.


As at 30 June 2007, approximately 75% of available rooms in the Group's
portfolio had been reserved for 2007/08 (30 June 2006: 78%).


The Group has also been successful in driving revenue growth by increasing the
proportion of longer length tenancies. 7,218 direct let rooms have been let on
the longer tenancies of 50-52 weeks per year for 2007/08, compared to 5,731 in
2006/07, an increase of 26%.


Commenting, Mark Allan, Chief Executive of The UNITE Group plc, said:


'We continue to make good progress across all areas of our business and are
strongly positioned to benefit from the ongoing demand from both UK and
international students for our accommodation.


'We are encouraged by the number of new sites we have secured and the success we
have achieved in obtaining planning consents, ensuring that our growth remains
on track to 2011 and beyond.


'UNITE's Board is pleased with your company's progress against its growth
strategy. As the more traditional sectors of the UK commercial property market
enter a period of anticipated slower growth, we believe UNITE is well positioned
to outperform, owing to the resilient nature of the student accommodation market
and our unique business model.'


END


For further details please contact:


Enquiries:

UNITE

Mark Allan, Chief Executive                                        0117 302 7000

Tabitha Aldrich-Smith                                              0117 302 7000


Financial Dynamics

Stephanie Highett / Dido Laurimore                                 020 7831 3113


Notes to editors:

•  UNITE is the UK's leading student hospitality company.  Listed in the FTSE 
   250 index of the London Stock Exchange and managing a property portfolio of
   £1.6 billion located across the UK, the Group focuses on the provision and
   management of high quality, well-located student accommodation and 
   hospitality services in strong higher education markets.


•  UNITE delivers the real student experience, whilst at the same time helping 
   to regenerate cities as part of the community and contributing to the 
   improvement of the country's housing.  It undertakes the planning, 
   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 and robust rental growth as demand continues to rise for places in UK 
   Higher Education and for safe, high quality accommodation for students.


Further information on UNITE is available at www.unite-group.co.uk

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