Securitisation Report

Unite Group PLC
09 February 2004



Date:                       9 February 2004
On behalf of:               UNITE Finance One plc
Embargoed until:            0700hrs


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 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
completed prior to 31 December 2001 and representing 47% of its total completed
portfolio.  The full text of the report is appended to this announcement.



UNITE reported coverage ratio and occupancy levels as follows:



•   The debt service coverage ratio for the 12 months to
January 2004 was 126% against a covenant of 120%. The interest cover ratio for
the period was 131%;



•   Term-time occupancy across the securitised portfolio
averaged 97% for the 12 months to January 2004.


Enquiries:


UNITE
Mark Allan, Group Finance Director     [phone]


Redleaf Communications
Emma Kane
                                       [phone]/  
                                         07876 338 339

Obligor Quarterly Report


Loan Determination Date: 23 January 2004

Date of Report: 9 February 2004
                                                             Opening Balance      Amortisation    Closing Balance
                                                                           £                 £                  £

Initial Class A Advance                                          144,725,940           219,705        144,506,235
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                                   2,144,088          2,144,088
Principal in respect of the initial Class A Advance                                    219,705            219,705
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
                                                                                     4,786,759          4,786,759

                                                                                                                £

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                                                                   30,525,309          6,258,175
Gross Rental income                                                                 30,349,823          6,602,202
Permitted Operating Costs                                                            4,058,293          1,381,275
Capital Expenditure                                                                    795,062             51,716
Available Funds                                                                                         8,334,871
Debt Service                                                                        25,429,191          6,432,453
Adjusted Debt Service                                                               25,429,191          6,432,453
Alternative Debt Service                                                            19,003,282          4,786,759
Anticipated Debt Service                                                                                6,440,724
Spot Coverage Ratio                                                                                           97%
Coverage Ratio                                                                                               126%
Relevant Shortfall                                                                                            Nil
Anticipated Gross Rent                                                                                 13,467,366
Debt Service Excess                                                                                     3,511,818
POC Overspend                                                                              Nil            344,027
POC Underspend                                                                         175,487                Nil
Required Retention Amount                                                                                     Nil
Scheduled Permitted Operating Costs Allowance                                                           1,058,445
Scheduled Property Management Fee                                                      587,355            151,206
Capital Expenditure Reserving                                                        1,727,072            436,043
Average Portfolio Occupancy                                                                                 89.4%
Average Portfolio Occupancy - excluding vacation periods                                                    97.0%
Credit Reserve Level                                                                                   12,000,000
Periodic Fee                                                                                                  Nil
Refinancing LTV                                                                                             73.8%

Details of any Structural Alterations:                                                                       None

Property/Property, Property/Cash or Cash/Property                                                            None
Substitutions

Property or Cash Collateral Withdrawals:                                                                     None

Coverage Ratio Calculation                                                                          Spot Coverage

                                                                                Coverage Ratio              Ratio

Gross Rental Income                                                                 30,349,823          6,602,202
Permitted Operating Costs                                                          (4,058,293)        (1,381,275)
Scheduled Property Management Fee                                                    (587,355)          (151,206)
Capex Debt Service                                                                 (1,727,072)          (436,043)
                                                                                    23,977,103          4,633,678

Alternative Debt Service                                                            19,003,282          4,786,759

                                                                                          126%                97%



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