Securitisation Report

Unite Group PLC
12 November 2004

Date:                      12 November 2004
On behalf of:              The UNITE Group plc
Embargoed until:           0700hrs

            Academic Year Update and 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. In conjunction with
the release of this report, The UNITE Group is also taking the opportunity to
provide an update on reservations and revenue performance across its total
portfolio as it enters the 2004/05 academic year.

Securitised portfolio

The securitised portfolio continues to perform in line with expectations:

•   It has again achieved steady income growth, with gross rents
contracted for the 2004/05 academic year 4.7% higher than those for 2003/04,
compared to a 2.8% increase last year.

•   Term time occupancy averaged 95.6% for the twelve months to October
2004, in line with the 96.0% achieved in the twelve months to October 2003.

•   The debt service coverage ratio for the year to October 2004 stood
at 123% versus 126% for the previous twelve months with the interest cover ratio
for both periods at 130%.

Total portfolio

Reservations and rental performance for the total portfolio is as follows:

•   Entering the 2004/05 academic year, occupancy stood at 94.8% of
available rooms, compared to 96.0% for the 2003/04 year.

•   On a like for like basis, contracted gross rents increased by 6.8%
year on year at those properties that were open for the full 2003/04 academic
year, (2003/04: 7.6%).

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

Enquiries:


UNITE

Mark Allan, Group Finance Director          020 7902 5060

Redleaf Communications
Emma Kane/James White                       020 7955 1410/
                                            07876 338 339

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

Note:

The Quarterly Securitisation 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 38%
of its total completed portfolio as at 31 October 2004.


                                     Obligor Quarterly Report


Loan Determination Date: 22 October 2004

Date of Report:  12 November 2004

                                                                             Opening      Amortisation  Closing Balance
                                                                             Balance
                                                                                   £                 £                £

   Initial Class A Advance                                               144,057,222           446,685      143,610,537
   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                                        2,134,194        2,134,194
   Principal in respect of the Initial Class A Advance                                         446,685          446,685
   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

                                                                                             5,003,845        5,003,845

                                                                                                                      £

   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                                                                        30,236,460        9,806,677
   Gross Rental Income                                                                      29,511,113        9,457,873
   Permitted Operating Costs                                                                 3,367,467          677,535
   Capital Expenditure                                                                         689,575          600,006
   Available Funds                                                                                           10,116,116
   Debt Service                                                                             25,850,519        6,617,983
   Adjusted Debt Service                                                                    25,850,519        6,617,983
   Alternative Debt Service                                                                 19,364,122        5,003,845
   Anticipated Debt Service                                                                                   6,621,812
   Spot Coverage Ratio                                                                                             164%
   Coverage Ratio                                                                                                  123%
   Relevant Shortfall                                                                                               Nil
   Anticipated Gross Rent                                                                                    21,162,594
   Debt Service Excess                                                                                        5,831,337
   POC Overspend                                                                                   Nil              Nil
   POC Underspend                                                                              725,346          348,804
   Required Retention Amount                                                                                        Nil
   Scheduled Permitted Operating Costs Allowance                                                              1,023,203
   Scheduled  Property Management Fee                                                          591,688          146,172
   Capital Expenditure Reserving                                                             1,752,892          444,763
   Average Portfolio Occupancy                                                                                    90.2%
   Average Portfolio Occupancy - excluding vacation periods                                                       95.6%
   Credit Reserve Level                                                                                      12,000,000
   Periodic Fee                                                                                                     Nil
   Refinancing LTV                                                                                                73.6%


   Details of any Structural Alterations:                                                                          None

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

   Property or Cash Collateral Withdrawals:                                                                        None

   Coverage Ratio Calculation
                                                                                        Coverage Ratio    Spot Coverage
                                                                                                                  Ratio

   Gross Rental Income                                                                      29,511,113        9,457,873
   Permitted Operating Costs                                                               (3,367,467)        (677,535)
   Scheduled Property Management Fee                                                         (591,688)        (146,172)
   Capex Reserving                                                                         (1,752,892)        (444,763)
                                                                                            23,799,066        8,189,403

   Alternative Debt Service                                                                 19,364,122        5,003,845

                                                                                                  123%             164%





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