UNITE acquires 1117 beds

Unite Group PLC
1 June 2001


Date:                           1 June 2001
Embargoed until:                0715hrs


UNITE in Acquisition of 1,117 Student
and Key Worker Beds in Manchester and Sheffield

The UNITE Group plc, the UK's leading specialist provider of student and NHS
key worker accommodation services, today announced that it has entered into
conditional agreements for the acquisition of the entire share capital of two
companies.

Corda Global Ltd. and Berkeley House Holdings Ltd. are currently developing
student accommodation located in Manchester and Sheffield respectively. The
total cash consideration is  £30.7 million and the transaction is conditional
upon satisfactory completion of the building works.

On completion, the properties will provide 1,117 beds and are expected to be
valued at approximately £33 million.  Due to the prime locations of the
schemes in relation to UNITE's existing portfolio, the Company expects to
generate significant operational synergies over the next twelve months.

Manchester

This scheme in Manchester, comprises a total of 671 beds and will provide
approximately 340sqm of retail space on the ground floor. This acquisition
will bring the total number of beds held by UNITE in Manchester to 2,198 of
which 1,174 are under development.

Sheffield

The scheme in Sheffield, comprises 446 beds. Combined with UNITE's existing
holdings, the acquisition will bring the total number of beds in Sheffield,
held by UNITE, to 765.

Commenting on the acquisitions, Nicholas Porter, Chief Executive of UNITE,
said:

'We are delighted that we have been able to acquire these schemes and further
strengthen UNITE's national presence and local dominance in line with our
strategy. UNITE has strong existing relationships with both universities and
NHS Trusts in Manchester and Sheffield and the two schemes will afford
significant operating synergies in these key areas.'

ENDS

Press Enquiries to:



Nicholas Porter, Chief Executive                 Tel:  [phone]

The UNITE Group plc                              
Emma Kane, Chief Executive                       Tel:  [phone]
Redleaf Communications Ltd                       Mob:  [phone]