Securitisation report

Unite Group PLC
10 August 2006


Date:                10th August 2006
On behalf of:        UNITE Finance One plc


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.



The securitised portfolio continues to perform in line with expectations:



  • Net revenues remain robust with the debt service coverage ratio for the
    year to July 2006 in line with the previous twelve months at 122% versus
    123% and the interest cover ratio improving to 138% from 135%.



  • Average tenancy lengths and rents continue to increase and contribute
    positively to rental growth.  This has offset a slight decline in average
    occupancy across the portfolio, which stood at 92.1% for the twelve months
    to July 2006 versus 95.6% achieved in the twelve months to July 2005.





The full text of the Quarterly Securitisation Report is appended to this
announcement.





ENDS




Enquiries:

UNITE
The UNITE Group plc
Mark Allan, Chief Financial Officer
Tel: [phone]

Financial Dynamics
Stephanie Highett / Dido Laurimore
Tel: [phone]


Further information on UNITE is available at www.unite-group.co.uk







Obligor Quarterly Report

Loan Determination Date: 25 July 2006
Date of Report:  10 August 2006

                                                            Opening           Amortisation                Closing
                                                            Balance                                       Balance
                                                                  £                      £                      £

Initial Class A Advance                                 140,504,694                574,725            139,929,969
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                                                                  2,073,084              2,073,084
Principal in respect of the Initial

Class A Advance                                                                    574,725                574,725
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

                                                                                 5,070,775              5,070,775

                                                                                                                £

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           This quarter       
                                                                                to LDD
Net Rental Income                                                               31,069,289              5,766,996
Gross Rental Income                                                             31,023,456              6,079,073
Permitted Operating Costs                                                        4,145,558              1,366,369
Capital Expenditure                                                                789,000                 56,715
Available Funds                                                                                         8,805,172
Debt Service                                                                    24,470,249             6,927,3922
Adjusted Debt Service                                                           24,470,249             6,927,3922
Alternative Debt Service                                                        20,361,088              5,070,775
Anticipated Debt Service                                                                                6,728,139
Spot Coverage Ratio                                                                                           83%
Coverage Ratio                                                                                               122%
Relevant Shortfall                                                                                            Nil
Anticipated Gross Rent                                                                                 32,142,042
Debt Service Excess                                                                                     5,024,414
POC Overspend                                                                          Nil                312,076
POC Underspend                                                                      45,833                    Nil
Required Retention Amount                                                                                     Nil
Scheduled Permitted Operating

Costs Allowance                                                                                         1,076,313
Scheduled Property Management

Fee                                                                                148,658                 38,440
Capital Expenditure Reserving                                                    1,814,945                462,732
Average Portfolio Occupancy                                                                                   90%
Average Portfolio Occupancy -

excluding vacation periods                                                                                    92%
Credit Reserve Level                                                                                   12,000,000
Periodic Fee                                                                                                  Nil
Refinancing LTV                                                                                             68.7%


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                   Spot
                                                                                     Ratio               Coverage
                                                                                                            Ratio

Gross Rental Income                                                             31,023,456              6,079,073
Permitted Operating Costs                                                      (4,145,558)            (1,366,369)
Scheduled Property Management

Fee                                                                              (148,658)               (38,440)
Capex Reserving                                                                (1,814,945)              (462,732)

                                                                                24,914,295              4,211,532

Alternative Debt Service                                                        20,361,088              5,070,775

                                                                                      122%                    83%




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