VALUATION OFTHE UNITE UK STUDENT ACCOMMODATION FUND AS AT 31 DECEMBER 2012

The UNITE Group plc, the UK's leading developer and manager of student accommodation, today reports the Estimated Net Asset Value* ("NAV") of the UNITE UK Student Accommodation Fund (the "Fund", "USAF") as at 31 December 2012.

The NAV as at 31December 2012 was £678.5m, reflecting an increase of 1.3% during the fourth quarter (30 September 2012: £669.6m), and an uplift of 8.7% over the 12 months to 31 December 2012 (31 December 2011: £624.5m). The total return for the year including the payment of income distributions was 14.2%.

The principal components of the movement in NAV were as follows:

Effect on NAV:                                 Q4 2012                     2012

Movement in property values          0.5%                        4.5%

Movement in swap values               0.8%                        1.4%

Partial Landsbanki recovery           0.3%                         2.3% 

Other factors                                      -0.2%                        0.5%

                                                             _____                     _____

Increase in NAV                                 1.3%                         8.7%

Increase in underlying gross          0.4%                        3.0%

property portfolio value on a

like for like basis


In arriving at the value of the Fund, its property portfolio, which comprises 21,826 beds in 60 properties across 20 UK towns and cities, was independently valued at £1,320m. During the quarter the Fund acquired an asset in Glasgow comprising 477 beds for £31m.

The value of the assets held throughout the quarter increased by 0.4% due to rental growth since 30 September 2012. In the 12 months to 31 December 2012, the value of the property portfolio held by the Fund increased, on a like for like basis, by 3.0%, again driven principally by rental growth.

The increase in the value of the property portfolio in the quarter, after taking account of lifecycle expenditure and gearing resulted in 0.5% growth in the NAV as outlined in the table above.

Average valuation yields increased by 1bps during the quarter to 6.68%.

In October, the Fund received a further payment of £1.76m from Landsbanki, representing the second instalment of repayment of the £30m deposit it placed with the bank in 2008. The Fund provided for the full amount of the deposit in 2008 and, therefore, the recovery added to the growth in NAV by 0.3% in the quarter. During 2012 the Fund received a total of £14.23m of cash from Landsbanki, adding 2.3% to the annual total return.

Commenting on the Fund's valuation, Joe Lister, UNITE's Chief Financial Officer, said:

"USAF has delivered another strong performance in 2012 with a total return of 14.2%. These consistently strong results, against a challenging economic backdrop, demonstrate the continued attractiveness of USAF and the student accommodation sector to UK and overseas investors.

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