Securitisation Report

Unite Group PLC
04 August 2003

     

Date:               4 August 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 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 July was 125% against a covenant 
     of 120%;

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

•    Reservations for the forthcoming academic year currently stand at 85% for 
     all of UNITE's existing buildings, and those to be completed this autumn 
     comprising 21,078 rooms. This compares to 80% at the same time last year.

Enquiries:

UNITE
Simon Bernstein, Chief Financial Officer              020 7902 5080

Redleaf Communications                                020 7955 1410/07876 338339
Emma Kane


                            Obligor Quarterly Report

Loan Determination Date: 24th July 2003

Date of Report:  August 2003
                                                             Opening Balance      Amortisation    Closing Balance
                                                                           £                 £                  £

Initial Class A Advance                                          145,084,743           142,299        144,942,444
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                                   2,149,326          2,149,326
Principal in respect of the initial Class A Advance                                    142,299            142,299
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       
         
                                                                                     4,714,591          4,714,591

                                                                                                                £

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                                                                   29,752,288          4,406,268
Gross Rental income                                                                 29,427,182          4,642,669
Permitted Operating Costs                                                            3,785,990          1,224,417
Capital Expenditure                                                                    511,231            320,054
Available Funds                                                                                         6,959,662
Debt Service                                                                        24,987,071          6,316,683
Adjusted Debt Service                                                               24,987,071          6,316,683
Alternative Debt Service                                                            18,859,819          4,714,591
Anticipated Debt Service                                                                                6,403,370
Spot Coverage Ratio                                                                                           60%
Coverage Ratio                                                                                               125%
Relevant Shortfall                                                                                            Nil
Anticipated Gross Rent                                                                                 30,162,862
Debt Service Excess                                                                                     5,175,791
POC Overspend                                                                              Nil            236,401
POC Underspend                                                                         325,106                Nil
Required Retention Amount                                                                                       0
Scheduled Permitted Operating Costs Allowance                                                           1,027,774
Scheduled Property Management Fee                                                      287,970            146,825
Capital Expenditure Reserving                                                        1,709,972            427,493
Average Portfolio Occupancy                                                                                 91.6%
Average Portfolio Occupancy - excluding vacation periods                                                    97.5%
Credit Reserve Level                                                                                   12,000,000
Periodic Fee                                                                                                  Nil
Refinancing LTV                                                                                             75.1%

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

Coverage Ratio Calculation                                                      Coverage Ratio      Spot Coverage
                                                                                                            Ratio

Gross Rental Income                                                                 29,427,182          4,642,669
Permitted Operating Costs                                                          (3,785,990)        (1,224,417)
Scheduled Property Management Fee                                                    (287,970)          (146,825)
Capex Reserving                                                                    (1,709,972)          (427,493)
                                                                                    23,643,250          2,843,934

Alternative Debt Service                                                            18,859,819          4,714,591

                                                                                          125%                60%



                      This information is provided by RNS
            The company news service from the London Stock Exchange