Unite Regulatory News (UTG)

THE UNITE GROUP PLC

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

USAF ACQUIRES 3,000 BED STUDENT PORTFOLIO FOR £137 MILLION

Unite Students, the UK's leading developer and manager of student accommodation, announces that the Unite UK Student Accommodation Fund ("USAF"), in which the Group has a 21% stake, has acquired a 2,904 bed student accommodation portfolio for £137 million. The acquisition was funded through a combination of cash resources and existing debt facilities following USAF's recent fund raising in March 2014.

The portfolio comprises nine regional assets and represents the entire portfolio of the Cordea Savills Student Hall Fund, a private student accommodation fund. The acquisition increases USAF's property portfolio value by 10% from £1.375 billion to £1.512 billion, comprising 24,577 beds in 68 properties across 22 UK towns and cities.

Two of the properties acquired are already operated by Unite under sale and leaseback arrangements so the Group's operational portfolio will increase by a net 1,862 bed spaces as a result of the acquisition. These two assets, in Bath and Portsmouth and representing approximately 35% of the acquired portfolio by value, benefit from long term nominations agreements with Universities and have significant reversionary potential. Taking account of recent disposals and planned completions later in the summer, the Group will be operating 43,953 bed spaces for the forthcoming 2014/15 academic year (41,072 in 2013/14).

The newly acquired assets are complementary to Unite Students' existing portfolio, with approximately 90% by value located in strong regional locations where the Group already has a significant operational presence and which are considered to be core. These core locations are Bath, Birmingham, Bristol, Edinburgh, Leeds, Loughborough and Portsmouth. The portfolio also includes two smaller assets in Preston and Bradford which will continue to be operated by a third party manager and are likely to be sold in due course.

The consideration paid equates to a net initial yield of 6.3% and the acquisition will be immediately accretive to USAF's earnings and marginally accretive to its NAV. Unite's share of these incremental earnings, together with additional management and acquisition fees, is expected to add approximately £2 million (1 pence per share) to the Group's Adjusted Earnings over the remainder of 2014 and approximately £2 million (1 pence per share) per annum on a recurring basis going forward. Following the transaction, USAF's loan to value ratio is 42%, in line with its current leverage targets.

USAF continues to achieve good rental growth and high occupancy levels across its portfolio.

Commenting on the acquisition, Mark Allan, CEO of Unite Students said: "We are delighted that USAF has been able to complete this important acquisition from Cordea Savills. The combination of Unite's existing operational presence across the country, USAF's financial capacity and the Group's position as lessee on two highly reversionary assets means that a combination of Unite and USAF is uniquely well placed to unlock the potential of an excellent regional portfolio."

A conference call for investors and analysts will take place at 9:00am today, 9 July 2014. To register for conference call details please contact ekirmatzis@bell-pottinger.com.

ENDS

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Notes to editors:

About Unite Students

Unite Students is the UK's leading manager and developer of student accommodation. We provide a home for 41,000 students in over 120 purpose built properties across 23 of the UK's strongest university towns and cities. We have nearly 1,000 employees and work in partnership with over 50 higher education providers, as well as renting rooms directly to students.

Our culturally-diverse customers are at the heart of our business and we aim to provide a home for students that supports their success, whether defined as academic achievement, personal growth or employability. Our properties provide high quality, well-located, safe accommodation that is close to university campuses, transport and local amenities. Our rent includes a study bedroom, all bills, insurance, 24-hour security and high speed Wi-Fi throughout our buildings.

Founded in 1991, Unite Group is a FTSE 250 company listed on the London Stock Exchange. We are pursuing a sustainable growth strategy designed to make the most of the resilient nature of the student accommodation sector. We aim to maintain the strongest brand in the sector and operate the highest quality portfolio through consistent investment in and improvement to our operating platform, highly selective development activity, asset management initiatives and portfolio recycling.

In addition to our wholly owned properties, we are also invested in and operate a small number of specialist funds and joint ventures with institutional investment partners, the largest of which is the £1.5 billion Unite UK Student Accommodation Fund (USAF).

The Group's charitable trust, the Unite Foundation, supports widening access to higher education, integrating students into the community and employability. It provides scholarships for disadvantaged students at seven universities and volunteering opportunities for our students and employees through partner organisations.

For more information visit our corporate website: www.unite-group.co.uk or www.unite-students.com.

About The Unite UK Student Accommodation Fund (USAF)

The Unite UK Student Accommodation Fund (USAF) is Europe's largest non-listed real estate fund that purely focuses on student accommodation investment assets. The £1.5 billion Fund is an open-ended infinite life vehicle. Unite Students acts as Fund Manager of USAF, as well as owning a significant minority stake of 21%.

USAF delivered a total return of 12.6% in 2013 and has been among the top performing funds in the IPD Specialist Funds index over the past five years, reflecting the quality of its portfolio and consistent rental growth performance.