Securitisation Report

Unite Group PLC
09 November 2006


Date:         9 November 2006
On behalf of: UNITE Finance One plc


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 approximately 28% of the
Group's total operational portfolio.

The securitised portfolio continues to perform in line with expectations:

  • Net revenues remain robust with the debt service coverage ratio for the
    year to October 2006 in line with the previous twelve months at 123% versus
    122% and the interest cover ratio improving to 140% from 135%.

  • Average tenancy lengths and rents continue to increase and contribute
    positively to rental growth.  Average occupancy stood at 91.2% for the
    twelve months to October 2006 versus 92.1% for the twelve months to July
    2006. This small drop in occupancy is substantially explained by the
    intentional non-letting of two properties that will shortly be redeveloped/
    sold. These two properties will form part of the proposed substitution
    outlined below.

  • UNITE is currently working with Capita IRG Trustees to effect a
    substitution before the date of the next quarterly report. UNITE plans to
    substitute out five properties replacing the income with four properties to
    be substituted in. The substitution is part of an ongoing programme of
    portfolio rationalisation and redevelopment and the financial performance of
    the portfolio will not be adversely affected.

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


ENDS


Enquiries:

UNITE
Mark Allan, Chief Executive                                                   0117 302 7000

Financial Dynamics
Stephanie Highett/ Dido Laurimore                                             020 7831 3113

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




Obligor Quarterly Report

Loan Determination Date: 25 October 2006
Date of Report:  8 November 2006

                                                       Opening    Amortisation    Closing Balance
                                                       Balance
                                                             £               £                  £

Initial Class A Advance                            139,929,969         674,247        139,255,722
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                   2,073,084          2,073,084
Principal in respect of the Initial Class A Advance                    674,247            674,247
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

                                                                     5,170,297          5,170,297

                                                                                                £

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       This quarter

                                                                        to LDD
Net Rental Income                                                   31,476,399         10,049,508
Gross Rental Income                                                 31,868,594         10,231,764
Permitted Operating Costs                                            4,721,490          1,268,077
Capital Expenditure                                                    408,123            328,931
Available Funds                                                                        10,384,875
Debt Service                                                        27,138,560          6,939,885
Adjusted Debt Service                                               27,138,560          6,939,885
Alternative Debt Service                                            20,443,150          5,170,297
Anticipated Debt Service                                                                6,736,771
Spot Coverage Ratio                                                                          164%
Coverage Ratio                                                                               123%
Relevant Shortfall                                                                            Nil
Anticipated Gross Rent                                                                 21,910,278
Debt Service Excess                                                                     7,669,308
POC Overspend                                                          494,332            182,256
POC Underspend                                                             Nil                Nil
Required Retention Amount                                                                     Nil
Scheduled Permitted Operating Costs Allowance                                           1,085,821
Scheduled Property Management Fee                                      148,658             38,779
Capital Expenditure Reserving                                        1,814,945            462,732
Average Portfolio Occupancy                                                                   85%
Average Portfolio Occupancy - excluding                                                       91%
vacation periods
Credit Reserve Level                                                                   12,000,000
Periodic Fee                                                                                  Nil
Refinancing LTV                                                                             68.6%


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                                                 31,868,594         10,231,764
Permitted Operating Costs                                          (4,721,490)        (1,268,077)
Scheduled Property Management Fee                                    (148,658)           (38,779)
Capex Reserving                                                    (1,814,945)          (462,732)

                                                                    25,183,501          8,462,176

Alternative Debt Service                                            20,443,150          5,170,297

                                                                          123%               164%




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