Securitisation Report

Unite Group PLC
12 May 2004


Date:             12 May 2004
On behalf of:     UNITE Finance One plc
Embargoed until:  0700 hrs



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 standard 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
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 April 2004 was 123% 
     showing a marginal improvement over the corresponding period in 2003 
     (2003: 122%). The interest cover ratio for the period was 128%;

•    Term-time occupancy across the securitised portfolio averaged 97% for the 
     12 months to April 2004, which is in line with expectations.


Enquiries:

UNITE
Mark Allan, Group Finance Director                             [phone]

Redleaf Communications
Emma Kane                                                      [phone]/
                                                                 07876 338 339



Obligor Quarterly Report

Loan Determination Date: 23 April 2004

Date of Report: 12 May 2004
                                                             Opening Balance      Amortisation    Closing Balance
                                                                           £                 £                  £

Initial Class A Advance                                          144,506,235           222,615        144,283,620
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                                   2,140,887          2,140,887
Principal in respect of the initial Class A Advance                                    222,615            222,615
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
                                                                                     4,786,468          4,786,468

                                                                                                                £

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                                                                   29,936,187          8,737,382
Gross Rental income                                                                 29,709,160          7,953,764
Permitted Operating Costs                                                            3,908,293            274,827
Capital Expenditure                                                                    811,644             16,582
Available Funds                                                                                         9,690,587
Debt Service                                                                        25,561,395          6,404,031
Adjusted Debt Service                                                               25,561,395          6,404,031
Alternative Debt Service                                                            19,074,577          4,786,468
Anticipated Debt Service                                                                                6,410,245
Spot Coverage Ratio                                                                                          148%
Coverage Ratio                                                                                               123%
Relevant Shortfall                                                                                            Nil
Anticipated Gross Rent                                                                                  5,513,602
Debt Service Excess                                                                                     4,346,066
POC Overspend                                                                              Nil                Nil
POC Underspend                                                                         783,618            227,027
Required Retention Amount                                                                                 896,643
Scheduled Permitted Operating Costs Allowance                                                           1,033,830
Scheduled Property Management Fee                                                      593,900            147,690
Capital Expenditure Reserving                                                        1,735,622            436,043
Average Portfolio Occupancy                                                                                 89.4%
Average Portfolio Occupancy - excluding vacation periods                                                    96.8%
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

                                                                                Coverage Ratio      Spot Coverage
                                                                                                            Ratio

Gross Rental Income                                                                 29,709,160          7,953,764
Permitted Operating Costs                                                          (3,908,293)          (274,827)
Scheduled Property Management Fee                                                    (593,900)          (147,690)
Capex Debt Service                                                                 (1,735,622)          (436,043)
                                                                                    23,471,345          7,095,204

Alternative Debt Service                                                            19,074,577          4,786,468

                                                                                          123%               148%



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