Securitisation Report

Unite Group PLC
12 August 2004

Date:                           12 August 2004

On behalf of:                   UNITE Finance One plc

Embargoed until:                0700hrs





UNITE RELEASES QUARTERLY SECURITISATION REPORT

UNITE Finance One plc, the wholly owned subsidiary of The UNITE Group plc
established for the purposes of the Group's securitisation in April 2002, has
today issued its standard quarterly report to bondholders.

The report contains trading information relating to the Group's securitised
portfolio of student and key worker accommodation, comprising 9,961 beds
completed prior to 31 December 2001 and representing 47% of its total completed
portfolio of 21,215 income-generating beds. The Group expects to complete a
further 5,100 beds in the year to 31 December 2004. The full text of the report
is appended to this announcement.

The Directors of UNITE Finance One plc confirmed performance in line with
expectations, reporting coverage ratio and occupancy levels as follows:


•   The debt service coverage ratio for the 12 months to July 2004 was 123% 
    (125% for the 12 months to July 2003). The interest cover ratio for the 
    period was 129% (129% for the 12 months to July 2003);

•   Term-time occupancy across the securitised portfolio averaged 96% for the 
    12 months to July 2004  (97% for the 12 months to July 2003).




Enquiries:


UNITE
Mark Allan, Group Finance Director         [phone]



Redleaf Communications
Emma Kane                   [phone]/
                              07876 338 339


                                             Obligor Quarterly Report


Loan Determination Date: 23 July 2004

Date of Report:  12 August 2004

                                                                  Opening Balance     Amortisation Closing Balance
                                                                                £                £               £

  Initial Class A Advance                                             144,283,620          226,398     144,057,222
  Initial Class B Advance                                              65,000,000              Nil      65,000,000
  Initial Class C Advance                                              63,000,000              Nil      63,000,000


                                                                                         Scheduled            Paid
                                                                                                 £               £

  Interest in respect of the Initial Class A Advance                                     2,137,686       2,137,686
  Principal in respect of the Initial Class A Advance                                      226,398         226,398
  Interest in respect of the Initial Class B Advance                                     1,076,530       1,076,530
  Principal in respect of the Initial Class B Advance                                          Nil             Nil
  Interest in respect of the Initial Class C Advance                                     1,346,436       1,346,436
  Principal in respect of the Initial Class C Advance                                          Nil             Nil

                                                                                         4,787,050       4,787,050

                                                                                                                 £

  Unscheduled Prepayment of the Initial Class A Advance                                                        Nil
  Unscheduled Prepayment of the Initial Class B Advance                                                        Nil
  Unscheduled Prepayment of the Initial Class C Advance                                                        Nil



                                                                                     4 Quarters to    This quarter
                                                                                               LDD
  Net Rental Income                                                                     29,937,557       5,502,077
  Gross Rental Income                                                                   29,549,908       5,502,077
  Permitted Operating Costs                                                              3,717,706       1,033,830
  Capital Expenditure                                                                      512,861          21,271
  Available Funds                                                                                        8,133,821
  Debt Service                                                                          25,640,764       6,396,052
  Adjusted Debt Service                                                                 25,640,764       6,396,052
  Alternative Debt Service                                                              19,147,036       4,787,050
  Anticipated Debt Service                                                                               6,688,997
  Spot Coverage Ratio                                                                                          81%
  Coverage Ratio                                                                                              123%
  Relevant Shortfall                                                                                           Nil
  Anticipated Gross Rent                                                                                30,288,655
  Debt Service Excess                                                                                    4,647,892
  POC Overspend                                                                                Nil             Nil
  POC Underspend                                                                           387,649             Nil
  Required Retention Amount                                                                                    Nil
  Scheduled Permitted Operating Costs Allowance                                                          1,026,339
  Scheduled  Property Management Fee                                                       593,695         146,620
  Capital Expenditure Reserving                                                          1,744,172         436,043
  Average Portfolio Occupancy                                                                                89.1%
  Average Portfolio Occupancy - excluding vacation periods                                                   95.9%
  Credit Reserve Level                                                                                  12,000,000
  Periodic Fee                                                                                                 Nil
  Refinancing LTV                                                                                            73.7%


  Details of any Structural Alterations:                                                                      None

  Property/Property, Property/Cash or Cash/Property Substitutions:                                            None

  Property or Cash Collateral Withdrawals:                                                                    None

  Coverage Ratio Calculation
                                                                                    Coverage Ratio   Spot Coverage
                                                                                                             Ratio

  Gross Rental Income                                                                   29,549,908       5,502,077
  Permitted Operating Costs                                                            (3,717,706)     (1,033,830)
  Scheduled Property Management Fee                                                      (593,695)       (146,620)
  Capex Reserving                                                                      (1,744,172)       (436,043)
                                                                                        23,494,335       3,885,584

  Alternative Debt Service                                                              19,147,036       4,787,050

                                                                                              123%             81%





                      This information is provided by RNS
            The company news service from the London Stock Exchange