Unite Regulatory News (UTG)

THE UNITE GROUP PLC

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

UNITE STUDENTS ACCOMMODATION FUND ('USAF') ANNOUNCES ACQUISITION OF TWO PROPERTIES UNDER DEVELOPMENT AND THE DISPOSAL OF A STUDIO SCHEME

Unite Students, the UK's leading manager and developer of student accommodation, announces that USAF has exchanged contracts for the acquisition of two assets: a 222-bed development in Durham and a 418-bed scheme in Selly Oak, Birmingham. The combined cost of the developments is £56 million (Unite share £12.9 million). The acquisitions are expected to generate a yield on cost of 6.3% in their first full year of operation.

The University of Durham and the University of Birmingham are both world class Universities ranked 4th and 16th respectively in the Times Higher Education rankings, with a combined student population of 53,000.

In parallel with these transactions, USAF has sold a 128-bed studio scheme in central London for £42 million (Unite share £9.7 million), providing the majority of the funding for the acquisitions. The remainder will be funded by cash. The disposal price reflects a value of £320,000 per bedroom, in line with book value and represents a net initial yield of 4.25%. Disposals in 2017 now total £180 million, on a Unite share basis, against our target of £150-200 million.

The transactions support Unite's strategy of concentrating its portfolio alongside high-ranking universities with a structural demand and supply imbalance and focusing on cluster flat accommodation rather than single occupancy studios.

Richard Simpson, Group Property Director, said:

"These transactions demonstrate our strategy of investing in new, larger and more efficient properties with cluster flat accommodation, available at a lower price point for students. We will continue to deploy funds from the disposals made at the start of the year to further improve the quality of the portfolio and to extend our highly accretive development programme in strong regional locations with top-ranked universities like Durham or Birmingham, where we see the most sustainable growth."

-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.

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