Securisation Report

Unite Group PLC
12 August 2002



Date:             12 August 2002
On behalf of:     UNITE Finance One plc
Embargoed until:  0700hrs



The UNITE Group plc - First Quarterly Securitisation Report



UNITE Finance One plc, the wholly-owned subsidiary of The UNITE Group plc
established for the purposes of the Group's first securitisation in April 2002,
has today issued its first 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 valued at £351.2 million and
representing substantially all of the Group's income generating property
portfolio as at 31 December 2001.  The full text of the report is appended to
this announcement.



As anticipated at the time the securitisation was completed, certain annualised
calculations will not be provided until the fourth quarterly report is issued in
April 2003.



The Directors of UNITE Finance One plc have confirmed that the portfolio is
trading in line with the forecasts on which the securitisation was based and
rated by Standard and Poors.  Occupancy across the portfolio averaged 95.1% for
the academic year 2001/02, although certain bedspaces were not available for
occupation for all or part of the academic year and, if the effect of this is
excluded, occupancy for the academic year averaged 96.7%.



Commenting on the report, Simon Bernstein, Chief Financial Officer, said:



'The £273.5 million securitisation of UNITE's mature investment portfolio in
April 2002 was the first securitisation of student and NHS key-worker
accommodation and a cornerstone in UNITE's financing strategy.  We are pleased
to confirm in this first quarterly report that the securitised portfolio has
performed in line with expectations.'





Enquiries:



UNITE
Simon Bernstein, Chief Financial Officer                020 7902 5080

Redleaf Communications
Emma Kane                                               020 7955 1410
                                                        07734  603381



                            Obligor Quarterly Report


Pursuant to clause 14.1 of the Issuer-Borrower Loan Agreement, UNITE Finance One
(Borrowing) Limited has covenanted to make certain calculations relating to the
securitisation transaction and the trading performance of the securitised
assets.  Several of these calculations require the inclusion of historic data,
typically relating to the previous twelve months' trading.  These calculations
will not be capable of performance until a period of twelve months has elapsed
and, consequently, cannot be disclosed to bondholders until the fourth Loan
Determination Date, scheduled for 24th April 2003.  These calculations are
annotated 'N/A' below and the disclosure has been agreed with the Trustee.



Notwithstanding the non-availability of the information referred to above, the
Directors have sought to disclose such trading performance indicators as are
available and these are included below.  Furthermore, the Directors confirm that
the securitised assets are trading in line with expectations and the forecasts
reviewed by Standard and Poors for the purposes of rating the transaction.





                            Obligor Quarterly Report


Loan Determination Date: 24th July 2002

Date of Report:  8th August 2002
                                                             Opening Balance      Amortisation    Closing Balance
                                                                           £                 £                  £

Initial Class A Advance                                          145,500,000               Nil        145,500,000
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                                   2,658,285          2,658,285
Principal in respect of the initial Class A Advance                                        Nil                Nil
Interest in respect of the initial Class B Advance                                   1,327,690          1,327,690
Principal in respect of the initial Class B Advance                                        Nil                Nil
Interest in respect of the initial Class C Advance                                   1,660,554          1,660,554
Principal in respect of the initial Class C Advance                                        Nil                Nil


                                                                                     5,646,529          5,646,529

                                                                                                                £

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

                                                                                                                £
Net Rental Income                                                                                             n/a
Gross Rental income                                                                                           n/a
Permitted Operating Costs                                                                               1,300,627
Capital Expenditure                                                                                        13,276
Available Funds                                                                                        10,149,461
Debt Service                                                                                            6,714,902
Adjusted Debt Service                                                                                   6,714,902
Alternative Debt Service                                                                                6,714,902
Anticipated Debt Service                                                                                4,578,403
Spot Coverage Ratio                                                                                           n/a
Coverage Ratio                                                                                                n/a
Relevant Shortfall                                                                                            n/a
Anticipated Rent                                                                                              n/a
Debt Service Excess                                                                                           n/a
P O C Overspend                                                                                               n/a
P O C Underspend                                                                                              n/a
Required Retention Amount                                                                               1,159,667
Scheduled Permitted Operating Costs Allowance                                                                 n/a
Scheduled Property Management Fee                                                                             n/a
Average Portfolio Occupancy                                                                                 89.6%
Average Portfolio Occupancy - excluding vacation periods                                                    95.1%
Credit Reserve Level                                                                                   12,000,000
Periodic Fee                                                                                                  n/a
Refinancing LTV                                                                                             77.9%

Details of any Structural Alterations:                                                                       None
Property/Property, Property/Cash or Cash/Property                                                            None
Substitutions
Property or Cash Collateral Withdrawals:                                                                     None








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