Unite Regulatory News (UTG)

THE UNITE GROUP PLC

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

UNITE DISPOSES OF 13 STUDENT PROPERTIES FOR £295 MILLION

Unite Students, the UK's leading manager and developer of student accommodation, announces the exchange of contracts for the disposal of 13 properties, comprising 4,175 beds to a Brookfield-managed fund for £295 million; Unite share £102 million. Completion is due in Q2 2017.

The disposal is part of Unite's strategy to provide the capital to fund further growth in its high-quality development pipeline which is focused on mid to high ranked University locations with the most secure long-term growth prospects.

It is the first stage of Unite's plan to recycle c.£150-£200 million of assets (Unite share) during 2017 to take advantage of the ongoing strength in the investment market for well let student accommodation.

The portfolio is made up of a combination of wholly owned, USAF and LSAV properties located in Aberdeen, Birmingham, Bournemouth, Edinburgh, Glasgow, Liverpool and York. The properties were sold in line with book value.

The proceeds will be used to fund Unite's recent 3,100 bed on-campus acquisition at Aston University and the remainder recycled into Unite's development activity and further high quality investment properties.

The gearing and earnings impact of the transaction broadly offsets the impact of the Aston University acquisition, with proforma LTV now at 34% in-line with the Group's target level.

 Richard Smith, Chief Executive of Unite Students, said:

"This sale is an important part of our strategy to recycle capital to fund our ongoing investments, focused on the strongest university towns and cities, where we have deep university relationships and where we can provide the best accommodation and services for our students. Our development pipeline supports further earnings growth as we continue to invest in strong student markets."

-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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