Unite Regulatory News (UTG)

THE UNITE GROUP PLC

("Unite Students", "Unite", the "Group", or the "Company")

UNITE ACQUIRES 3,067 BED ASTON STUDENT VILLAGE FOR £227 MILLION IN FIRST MAJOR ON-CAMPUS ACQUISITION WITH GIC

Unite Students, the UK's leading manager and developer of student accommodation, announces that it has acquired Aston Student Village ("ASV") for £227 million in a 50:50 joint venture with GIC, Singapore's sovereign wealth fund. ASV, which represents Unite's first major on-campus acquisition, comprises 3,067 beds across five large, detached properties on Aston University's campus in central Birmingham.

ASV is currently the only accommodation offered to students at Aston University, which has a student population of 11,000, with no additional accommodation available either under direct ownership or through nominations agreements. The modern, high quality accommodation is fully occupied.

Aston University has consistently achieved strong league table positions and is currently ranked 33rd in The Times' Good University Guide. The acquisition provides Unite Students and Aston University with the opportunity to establish a long-term strategic partnership, including nominations, in due course. ASV takes Unite's presence in Birmingham to over 5,000 beds, providing the opportunity to deliver efficiencies across the whole portfolio in the city.

Unite is planning to invest in the accommodation over the summer to provide the next intake of students with the Unite customer experience. By enhancing the experience and product for customers and integrating the buildings into our PRISM operating system, we will drive rental growth opportunities as well as cost and operational efficiencies. The acquisition creates an excellent opportunity to demonstrate the benefits of our scale, operational capability and reputation, and open up further opportunities across the sector.

The purchase price represents an acquisition yield of 5%, in line with recent transactions in the student accommodation sector. This yield will grow to over 6% following investment into the portfolio and the implementation of the Unite Students platform. ASV will generate gross annual income of around £17 million for the 2017/18 academic year and will be immediately accretive to earnings and NAV.

ASV has been acquired into Unite and GIC's LSAV 50:50 joint venture. Unite will receive management and acquisition fees and the acquisition is expected to add approximately 1-2p to the Group's annual EPRA Earnings on a recurring basis.

LSAV is funding the acquisition with 40% equity and 60% debt (provided by TH Real Estate under a 10-year facility). Unite will initially fund its share of the acquisition through additional borrowings, with disposals planned for later in the year offsetting this increase in net debt. Following the transaction, LSAV's LTV ratio is 39% and Unite's see-through LTV (on a pro-forma basis) is 38%.

Birmingham is a thriving metropolitan city with the second largest student population in the UK, with over 70,000 students resident in the city during term time. The city is home to two other leading UK universities: the University of Birmingham and Birmingham City University.

Richard Smith, Unite Students Chief Executive Officer, commented:

"I am delighted to announce this acquisition, our first on campus. Birmingham is one of the top cities for students and this acquisition demonstrates the value of our strong relationships with Universities and also the benefit of our position as market leader, both by scale and efficiency and the service that we are able to offer to students as a result of our PRISM operating system.

"I look forward to strengthening our relationship with Aston University, working within the campus, helping to support their growth and providing their students with great accommodation and a service experience that will support their personal and academic achievements."

Madeleine Cosgrave, Regional Head, Europe, GIC Real Estate, said:

"GIC is pleased to strengthen our partnership with Unite, a leading manager and developer of student accommodation in the UK, through this acquisition. ASV is a high-quality asset uniquely located both on-campus and in the city centre. We are confident in the long-term growth potential of this asset and the student housing sector which we find attractive for its resilient income streams."

-ENDS-

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Notes to editors:

About Unite Students

Unite Students is the UK's largest and most established manager and developer of purpose-built student accommodation. It provides a home for around 50,000 students, in more than 140 properties, across 28 leading university cities in England and Scotland. Unite works in partnership with more than 60 Higher Education institutions and also lets rooms directly to students.

Unite's purpose is to provide a home to its culturally-diverse customers, offering them a strong foundation for academic and personal success. The accommodation is high quality, safe and close to university campuses, transport links and local amenities. Students live in ensuite study bedrooms with rents covering all bills, insurance, 24-hour security, fortnightly cleaning of communal kitchens and bathrooms and high speed Wi-Fi.

Founded in 1991 in Bristol, The Unite Group plc is a FTSE250 company, listed on the London Stock Exchange, employing more than 1,250 people. It pursues a sustainable growth strategy, designed to make the most of the resilient nature of the student accommodation sector. Unite is focused on maintaining its position as the leading provider of student accommodation in the UK, by having the best brand, operating the highest quality portfolio and maintaining the strongest capital structure in the sector. This is achieved with consistent investment in, and improvement to, the operating platform; highly selective development activity and asset management initiatives.

Unite is invested in and operates a two specialist funds and joint ventures with institutional investment partners, the £2 billion Unite UK Student Accommodation Fund (USAF) and the £1 billion London Student Accommodation Vehicle (LSAV).

Unite is the founder and major donor of the Unite Foundation. Since 2012 this has provided free student accommodation and financial support to 160 young people in the UK who lack family support.

For more information you can visit Unite's corporate website www.unite-group.co.uk, the student site www.unite-students.com or the Unite Foundation www.unitefoundation.co.uk.

About GIC

GIC is a leading global investment firm with well over $100 billion in assets under management. Established in 1981 to secure the financial future of Singapore, the firm manages Singapore's foreign reserves. A disciplined long-term value investor, GIC is uniquely positioned for investments across a wide range of asset classes, including real estate, private equity, equities and fixed income. GIC has investments in over 40 countries and has been investing in emerging markets for more than two decades. Headquartered in Singapore, GIC employs over 1,300 people across 10 offices in key financial cities worldwide. For more information about GIC, please visit www.gic.com.sg.

About TH Real Estate

TH Real Estate, an investment affiliate of Nuveen, is one of the largest real estate investment managers in the world. Managing a suite of nearly 80 funds and mandates spanning both debt and equity across diverse geographies, sectors, investment styles and vehicle types, the firm provides access to every aspect of real estate investing. With offices in 18 cities throughout the U.S., Europe and Asia Pacific, over 400 professionals and 60 years of investing experience, the platform offers deep local expertise coupled with a sophisticated global perspective. TH Real Estate's investment, asset management and corporate strategies grow from a deep understanding of the structural trends that will shape the future of real estate and responsible investing beyond market cycles. This 'Tomorrow's World' approach sits at the core of our investment process and business operations, informing our long-term view of real estate investments for the enduring benefit of both clients and society. For more information, please visit www.threalestate.com.

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