Securitisation Report

Unite Group PLC
05 February 2003

Date:                       5 February 2003

On behalf of:               UNITE Finance One plc

Embargoed until:            0700hrs





UNITE Announces Trading in Line with Forecasts in 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 third quarterly report to bondholders.  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.



The report contains trading information relating to the Group's securitised
portfolio of student and key worker accommodation, comprising 9,961 beds
representing substantially all of the Group's income generating property
portfolio as at 31 December 2001.  The Group currently has a total of 14,604
income-generating beds.  The full text of the report is appended to this
announcement.



UNITE reported occupancy levels as follows:



•                     Occupancy across the securitised portfolio averaged
                      96.6% over the last 12 months;

•                     2002/2003 academic year started at an average 98.6%
                      occupancy for the securitised portfolio and at 98.1% for 
                      all available student rooms (94.8% for all rooms at the 
                      same time in 2001);

•                     As at 27 January 2003 the securitised portfolio averaged
                      97.9% occupancy and 97.3% for all available student rooms.



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.





Enquiries:



UNITE

Simon Bernstein, Chief Financial Officer     [phone]

Redleaf Communications
Emma Kane                                    [phone]/
                                              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 January 2003

Date of Report:  5 February 2003
                                                             Opening Balance      Amortisation    Closing Balance
                                                                           £                 £                  £

Initial Class A Advance                                          145,363,521           138,225        145,225,296
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                                   2,153,691          2,153,691
Principal in respect of the initial Class A Advance                                    138,225            138,225
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
                                                                                     4,714,882          4,714,882

                                                                                                                £

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                                                                               1,068,373
Capital Expenditure                                                                                        75,896
Available Funds                                                                                         8,678,003
Debt Service                                                                                            6,187,522
Adjusted Debt Service                                                                                   6,187,522
Alternative Debt Service                                                                                6,187,522
Anticipated Debt Service                                                                                6,199,426
Spot Coverage Ratio                                                                                           n/a
Coverage Ratio                                                                                                n/a
Relevant Shortfall                                                                                            n/a
Anticipated Rent                                                                                              n/a
Debt Service Excess                                                                                           n/a
POC Overspend                                                                                                 n/a
POC Underspend                                                                                                n/a
Required Retention Amount                                                                                     n/a
Scheduled Permitted Operating Costs Allowance                                                                 n/a
Scheduled Property Management Fee                                                                             n/a
Average Portfolio Occupancy                                                                                 91.2%
Average Portfolio Occupancy - excluding vacation periods                                                    96.6%
Credit Reserve Level                                                                                   12,000,000
Periodic Fee                                                                                                  N/a
Refinancing LTV                                                                                             77.8%

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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