Securitisation Report

Unite Group PLC
08 February 2007


Date:                       8 February 2007

On behalf of:               UNITE Finance One plc

For immediate release




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 9,636 beds, the
majority of which were completed prior to 31 December 2001 and representing
approximately 28% of the Group's total operational portfolio.

The securitised portfolio continues to perform in line with expectations:


  • Net revenues remain robust with the debt service coverage ratio for the
    year to January 2007 increasing compared to the previous twelve months at
    127% versus 122% and the interest cover ratio improving to 144% from 136%.

  • Average occupancy stood at 92.6% for the twelve months to January 2007
    versus 91.2% for the twelve months to October 2006.

  • As disclosed in our previous quarterly securitisation report, as part of
    an ongoing programme of portfolio rationalisation and redevelopment, UNITE
    effected a substitution of properties on 1st December 2006. Four properties
    were substituted in replacing the income of five properties removed.

    o   The market value of the properties coming into the portfolio is
        approximately £19m more than those being removed.

    o   The number of beds has reduced by 325.

    o   The financial performance of the portfolio will not be adversely
        affected by this substitution.


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




ENDS


Enquiries:

UNITE
Tony Harris, Chief Financial Officer                               0117 302 7000

Financial Dynamics
Stephanie Highett/ Dido Laurimore                                  020 7831 3113

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






Obligor Quarterly Report

Loan Determination Date: 25 January 2007
Date of Report:  8 February 2007

                                                    Opening     Amortisation         Closing
                                                    Balance                          Balance
                                                          £                £               £

Initial Class A Advance                         139,255,722          664,062     138,591,660
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                         2,063,190       2,063,190
Advance
Principal in respect of the Initial Class                            664,062         664,062
A Advance
Interest in respect of the Initial Class B                         1,076,530       1,076,530
Advance
Principal in respect of the Initial Class                                Nil             Nil
B Advance
Interest in respect of the Initial Class C                         1,346,436       1,346,436
Advance
Principal in respect of the Initial Class                                Nil             Nil
C Advance

                                                                   5,150,218       5,150,218

                                                                                           £

Unscheduled Prepayment of the Initial                                                    Nil
Class A Advance
Unscheduled Prepayment of the Initial                                                    Nil
Class B Advance
Unscheduled Prepayment of the Initial                                                    Nil
Class C Advance
                                                                  4 Quarters    This quarter
                                                                      to LDD
                                                                           £               £
Net Rental Income                                                 32,394,583       7,476,424
Gross Rental Income                                               32,743,589       7,476,424
Permitted Operating Costs                                          4,753,760       1,082,324
Capital Expenditure                                                  431,193          23,070
Available Funds                                                                   10,003,140
Debt Service                                                      27,320,556       6,806,431
Adjusted Debt Service                                             27,320,556       6,806,431
Alternative Debt Service                                          20,496,694       5,150,218
Anticipated Debt Service                                                           6,757,407
Spot Coverage Ratio                                                                     114%
Coverage Ratio                                                                          127%
Relevant Shortfall                                                                       Nil
Anticipated Gross Rent                                                            13,758,461
Debt Service Excess                                                                4,728,656
POC Overspend                                                        494,332             Nil
POC Underspend                                                           Nil             Nil
Required Retention Amount                                                                Nil
Scheduled Permitted Operating Costs                                                1,082,324
Allowance
Scheduled Property Management Fee                                    151,598          38,654
Capital Expenditure Reserving                                      1,832,936         462,732
Average Portfolio Occupancy                                                              87%
Average Portfolio Occupancy - excluding                                                  93%
vacation periods
Credit Reserve Level                                                              12,000,000
Periodic Fee                                                                             Nil
Refinancing LTV                                                                        68.4%


Details of any Structural Alterations:                                                 None

Property/Property, Property/Cash or Cash/  Substituted              John Bell House, London
Property                                   Out                      Churchill and Rosehill,
Substitutions:                                                      Salford
                                                                    Snow Island,
                                                                    Huddersfield
                                                                    Colston Street, Bristol
                                                                    Fellsdyke Court,
                                                                    Newcastle
                                           Substituted              Marketgate, Bristol
                                           In                       Mealmarket, Aberdeen
                                                                    Alexandra House,
                                                                    Plymouth
                                                                    Sherbourne House,
                                                                    Coventry
Property or Cash Collateral Withdrawals:                                                None

Coverage Ratio Calculation
                                                                    Coverage            Spot
                                                                       Ratio        Coverage
                                                                                       Ratio

Gross Rental Income                                               33,418,982       8,476,424
Permitted Operating Costs                                        (4,753,760)     (1,082,324)
Scheduled Property Management Fee                                  (151,598)        (38,654)
Capex Reserving                                                  (1,832,936)       (462,732)

                                                                  26,680,688       5,892,714

Alternative Debt Service                                          20,496,694       5,150,218

                                                                        127%            114%




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