Commercial provider of student accommodation, the UNITE Group, has formed a £1bn Student Accommodation Fund.

Investors have already contributed almost £300m to the fund. Approximately 51% of these commitments have been drawn to fund the acquisition of the properties
contributed to the Fund by UNITE, resulting in third party investors and UNITE
having interests in the Fund of 61% and 39% respectively.

The remaining 49% of equity commitments will be available to fund the
purchase of future assets. The Fund is expected to own student accommodation
property worth over £1bn when fully invested.

UNITE is also in advanced discussions with a number of other investors who have
made non-binding indications of interest to invest in the Fund. Based on the
continuing level of interest in the Fund, UNITE is considering selling
additional units in the Fund during 2007, thereby reducing its interest in the
Fund and releasing additional cash proceeds.

Commenting on the Transaction, Mark Allan, UNITEs chief executive, said: “We are delighted to have successfully completed the formation of the UNITE UK
Student Accommodation Fund following overwhelming support from our shareholders
for the transaction.

“The formation of the Fund has demonstrated the strong demand from leading
institutional equity and debt investors for well managed student accommodation
properties, and firmly establishes student accommodation as an institutionally
recognised property asset class.”