Unite Regulatory News (UTG)

THE UNITE GROUP PLC

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

QUARTERLY VALUATION UPDATE FOR THE UNITE UK STUDENT ACCOMMODATION FUND AND THE LONDON STUDENT ACCOMMODATION JOINT VENTURE

Unite Students, the UK's leading developer and manager of student accommodation, announces the quarterly property valuation of the Unite UK Student Accommodation Fund ("USAF") and the London Student Accommodation Joint Venture ("LSAV") as at 30 June 2016.

At 30 June 2016, USAF's property portfolio was independently valued at £2,149 million representing a like-for-like increase of 1.0% during the quarter. The portfolio comprises 26,319 beds in 74 properties across 23 University towns and cities in the UK.

LSAV's investment portfolio was independently valued at £758 million, up 1.0% in the quarter. LSAV's investment portfolio comprises 4,636 beds across 12 properties in London and three properties in Edinburgh.

The increase in valuations is driven primarily by rental growth in the quarter. Valuation yields have remained stable and the USAF portfolio is now valued at an average yield of 5.6% and LSAV's portfolio at 4.9%.

The result of the EU membership referendum held on 23 June has resulted in a period of uncertainty in relation to many factors affecting the property investment market. The latest valuations of the USAF and LSAV portfolios, detailed above, were taken before the referendum vote and therefore do not reflect this uncertainty.

However, EU students represent just 7% of all full-time students in the UK and only 9% of Unite's customers. Applications from EU students are up 6% for the 2016/17 academic year and the Government has confirmed that students starting courses this year will have access and funding guaranteed for the duration of their courses. Given the strength of UK Higher Education and long-term growth in student numbers, we expect to see continued high demand for purpose-built student accommodation.

Unite's portfolio continues to perform strongly with reservations for the forthcoming academic year at 87% compared to 86% at the same point in 2015. These reservations are supportive of rental growth of 3.5-4.0% and are in line with last year.

Joe Lister, Unite Students Chief Financial Officer, commented: "The latest USAF and LSAV valuations reflect further rental growth achieved in the quarter as a result of strong bookings progress for the coming academic year. Despite the uncertainty created by the EU referendum, reservations for the 2016/17 academic year are 87%, marginally ahead of the position at the same time last year."

ENDS

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About Unite Students

Unite Students is the UK's leading manager and developer of student accommodation. Unite provides a home for over 46,000 students in 138 purpose-built properties across 28 of the UK's strongest university towns and cities. The Group works in partnership with more than 60 higher education institutions as well as letting rooms directly to students.

Our culturally diverse customers are at the heart of Unite's business and we aim to provide a home for students which supports their academic and personal success. Unite's properties provide students with high-quality, well-located, safe accommodation that is close to university campuses, transport and local amenities. The rent includes a study bedroom, all bills, insurance, 24-hour security, fortnightly kitchen cleans and high-speed Wi-Fi throughout our properties.

Founded in 1991 in Bristol, The Unite Group plc is a FTSE250 company listed on the London Stock Exchange, employing over 1,250 people. We are pursuing a sustainable growth strategy designed to make the most of the resilient nature of the student accommodation sector. Our aim is to maintain the strongest brand in the sector and operate the highest quality portfolio through consistent investment in and improvement to the operating platform, highly selective development activity, asset management initiatives and portfolio recycling.

In addition to Unite's 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 £2 billion Unite UK Student Accommodation Fund (USAF).

The Group's charitable trust, the Unite Foundation, provides free student accommodation and a generous annual scholarship to around 150 young people in the UK who aspire to a degree but face the most challenging circumstances.

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.