Securitisation Report

Unite Group PLC
12 May 2006


Date:                       12th May 2006
On behalf of:               UNITE Finance One plc
For immediate release





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.


The securitised portfolio continues to perform in line with expectations:


  • Net revenues remain robust with the debt service coverage ratio for the
    year to April 2006 in line with the previous twelve months at 122% versus
    123% and the interest cover ratio improving to 137% from 133%.


  • Average tenancy lengths and rents continue to increase and contribute
    positively to rental growth.  This has offset a slight decline in average
    occupancy across the portfolio, which stood at 92.9% for the twelve months
    to April 2006 versus 95.7% achieved in the twelve months to April 2005.
    This trend will continue for the remainder of the academic year 2005/06.


The full text of the Quarterly Securitisation Report is appended to this
announcement.




ENDS


Enquiries:

UNITE
Mark Allan, Chief Financial Officer                                0117 302 7112

Redleaf Communications
Emma Kane / Janakie Mallawa-Arachi / Andrew Dunn                   020 7955 1410

Further information on UNITE is available at www.unite-group.co.uk




Obligor Quarterly Report

Loan Determination Date: 24 April 2006
Date of Report:   12th May 2006
                                                Opening Balance     Amortisation   Closing Balance
                                                              £                £                 £

Initial Class A Advance                             141,088,440          583,746       140,504,694
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                     2,090,253         2,090,253
Principal in respect of the Initial Class A Advance                      583,746           583,746
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

                                                                       5,096,965         5,096,965

                                                                                                 £

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                                                     31,079,501         8,956,329
Gross Rental Income                                                   30,405,642         8,956,329
Permitted Operating Costs                                              3,543,309         1,036,990
Capital Expenditure                                                      843,524            22,477
Available Funds                                                                          7,927,391
Debt Service                                                          26,553,707         6,642,646
Adjusted Debt Service                                                 26,553,707         6,642,646
Alternative Debt Service                                              20,294,449         5,096,965
Anticipated Debt Service                                                                 6,619,950
Spot Coverage Ratio                                                                           146%
Coverage Ratio                                                                                122%
Relevant Shortfall                                                                             Nil
Anticipated Gross Rent                                                                   5,277,617
Debt Service Excess                                                                      4,054,213
POC Overspend                                                                Nil               Nil
POC Underspend                                                           673,859               Nil
Required Retention Amount                                                                1,343,333
Scheduled Permitted Operating Costs Allowance                                            1,054,292
Scheduled  Property Management Fee                                       262,154            37,653
Capital Expenditure Reserving                                          1,805,972           453,736
Average Portfolio Occupancy                                                                    88%
Average Portfolio Occupancy - excluding                                                        93%
vacation periods
Credit Reserve Level                                                                    12,000,000
Periodic Fee                                                                                   Nil
Refinancing LTV                                                                             68.90%


Details of any Structural Alterations:                                                       None

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

Property or Cash Collateral Withdrawals:                                                     None

Coverage Ratio Calculation
                                                                  Coverage Ratio     Spot Coverage
                                                                                             Ratio

Gross Rental Income                                                   30,405,642         8,956,329
Permitted Operating Costs                                            (3,543,309)       (1,036,990)
Scheduled Property Management Fee                                      (262,154)          (37,653)
Capex Reserving                                                      (1,805,972)         (453,736)

                                                                      24,794,207         7,427,949

Alternative Debt Service                                              20,294,449         5,096,965

                                                                            122%              146%




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