Unite Regulatory News (UTG)

THE UNITE GROUP PLC

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

UNITE STUDENTS CALLS £89.9M 2.50% CONVERTIBLE BONDS DUE 2018

Unite Students, the UK's leading manager and developer of student accommodation, announces today that it has started a process to redeem the convertible bonds due 2018 (the "Bonds") issued by Unite Jersey Issuer Limited (the "Issuer"), a wholly-owned subsidiary of Unite Students. The Bonds were issued in 2013 and are due to mature in 2018, but Unite has exercised its right to redeem the Bonds early based on recent share price performance. Prior to redemption, Bondholders may exercise their right to convert the Bonds into ordinary shares of Unite Students. The last day on which Bondholders may exercise this conversion right is Wednesday 21 June 2017. If all investors take up their right to convert their bonds into equity, the Group's LTV will fall from 35% to 31% on a proforma basis. There will be no meaningful impact on 2017 Net Asset Value or earnings per share.

The Issuer has sent a notice to redeem all of the outstanding Bonds on Monday 3 July 2017 at their principal amount together with any accrued but unpaid interest. As at the date of this notice, £78.7m of the Bonds remain outstanding.

The Bonds were issued on 10 October 2013, paying a coupon of 2.5% per annum and with a final maturity date of 10 October 2018. The initial conversion price of 509.73 pence per ordinary share represented a premium of 35% above the volume weighted average price of the Company's ordinary shares from launch to pricing and a premium of 41% above the Group's reported NAV per share at the time. As a result of adjustments during the life of the Bonds, the conversion price currently in effect is 482.88 pence per ordinary share. Unite's share price at the close of business on 15 May 2017 was 646.5 pence.

The Issuer is entitled to exercise this early redemption option in accordance with the Terms and Conditions of the Bonds as a result of the Parity Value having equalled or exceeded £130,000 on at least 20 of the 30 consecutive dealing days up to and including 15 May 2017. If conversion rights are exercised in respect of all outstanding Bonds, it would lead to the issue of up to 16,298,045 ordinary shares.

-ENDS-

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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.