Securitisation Report

Unite Group PLC
13 May 2003


Date:                       13 May 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 fourth 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
Poor's.

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 14,778
income-generating beds and expects to complete a further 6,300 beds in the year
to 31 December 2003.  The full text of the report is appended to this
announcement.

UNITE reported the coverage ratio and occupancy levels as follows:

•    The coverage ratio for the 12 months to 24 April was 122% against a 
     covenant of 120%;

•    Due to the late Easter, the coverage ratio was affected by the timing of 
     collections of summer rent. Approximately £600,000 of direct
debits relating to April rent collection were collected in the 10 business days
following the loan determination date. The coverage ratio, adjusting for this
timing difference, would have been 125%;

•Occupancy across the securitised portfolio averaged 97%
over the last 12 months;

•As at 28 April 2003 the securitised portfolio averaged
98% occupancy whilst occupancy across all available student rooms averaged 97%;

•Reservations for the forthcoming academic year currently
stand at 76% for all of UNITE's existing buildings and those to be completed
this autumn comprising 21,079 rooms. This compares to 71% at the same time last
year.


Enquiries:

UNITE
Simon Bernstein, Chief Financial Officer                         [phone]

Redleaf Communications
Emma Kane                                                       [phone]/
                                                                   07876 338 339

                            Obligor Quarterly Report


Loan Determination Date: 24th April 2003

Date of Report:  9 May 2003
                                                             Opening Balance      Amortisation    Closing Balance
                                                                           £                 £                  £

Initial Class A Advance                                          145,225,296           140,553        145,084,743
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                                   2,151,654          2,151,654
Principal in respect of the initial Class A Advance                                    140,553            140,553
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
                                                                                     4,715,173          4,715,173

                                                                                                                £

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 LDD       This quarter

                                                                                             £                  £
Net Rental Income                                                                   28,569,661          9,368,337
Gross Rental income                                                                 28,247,542          8,594,427
Permitted Operating Costs                                                            3,629,946            424,827
Capital Expenditure                                                                    204,453                Nil
Available Funds                                                                                        12,547,481
Debt Service                                                                        25,385,290          6,271,827
Adjusted Debt Service                                                               25,385,290          6,271,827
Alternative Debt Service                                                            18,723,841          4,715,173
Anticipated Debt Service                                                                                6,309,919
Spot Coverage Ratio                                                                                          161%
Coverage Ratio                                                                                               122%
Relevant Shortfall                                                                                            Nil
Anticipated Gross Rent                                                                                  4,139,957
Debt Service Excess                                                                                     4,266,281
POC Overspend                                                                              Nil                Nil
POC Underspend                                                                         322,119            773,911
Required Retention Amount                                                                               2,169,962
Scheduled Permitted Operating Costs Allowance                                                             988,016
Scheduled Property Management Fee                                                                         141,145
Average Portfolio Occupancy                                                                                 91.6%
Average Portfolio Occupancy - excluding vacation periods                                                    97.1%
Credit Reserve Level                                                                                   12,000,000
Periodic Fee                                                                                                  Nil
Refinancing LTV                                                                                             75.2%

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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