Securitisation Report

Unite Group PLC
10 August 2005

Date:                            10 August 2005

On behalf of:                 UNITE Finance One plc


UNITE releases standard quarterly securitisation report


UNITE Finance One plc, the wholly owned subsidiary of The UNITE Group plc
established for the purposes of the Group's first securitisation in April 2002,
has today issued its standard quarterly report to bondholders.


The report contains trading information relating to the Group's first
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. The full text of the report is appended to this
announcement.


UNITE reported coverage ratio and occupancy levels for this portfolio as
follows:


• The debt service coverage ratio for the 12 months to
  July 2005 was 123%  (July 2004: 123%) against a covenant of 120%. The interest
  cover ratio for the period rose to 135% compared to 129% for the same period
  last year;



• Term-time occupancy averaged 96% for the 12 months to July 2005 
  (July 2004: 96%).



Enquiries:


UNITE

Mark Allan, Group Finance Director       [phone]

Redleaf Communications

Emma Kane / Wendy Timmons                [phone]/07876 338 339



                                 Obligor Quarterly Report


Loan Determination Date: 25 July 2005

Date of Report:          Aug 2005

                                                                Opening Balance       Amortisation    Closing Balance
                                                                              £                  £                  £

          Initial Class A Advance                                   142,697,088            467,055        142,230,033
          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                             2,114,115          2,114,115
          Principal in respect of the Initial Class A Advance                              467,055            467,055
          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

                                                                                         5,004,136          5,004,136

                                                                                                                    £

          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                                                             31,105,460          5,751,244
          Gross Rental Income                                                           30,376,945          5,461,259
          Permitted Operating Costs                                                      3,471,702            764,120
          Capital Expenditure                                                              773,478            111,239
          Available Funds                                                                                   9,819,819
          Debt Service                                                                  26,549,627          6,648,961
          Adjusted Debt Service                                                         26,549,627          6,648,961
          Alternative Debt Service                                                      20,015,671          5,004,136
          Anticipated Debt Service                                                                          6,750,333
          Spot Coverage Ratio                                                                                     82%
          Coverage Ratio                                                                                         123%
          Relevant Shortfall                                                                                      Nil
          Anticipated Gross Rent                                                                           31,136,369
          Debt Service Excess                                                                               4,586,742
          POC Overspend                                                                        Nil                Nil
          POC Underspend                                                                   728,516            289,985
          Required Retention Amount                                                                               Nil
          Scheduled Permitted Operating Costs Allowance                                                     1,050,054
          Scheduled  Property Management Fee                                               594,021            150,008
          Capital Expenditure Reserving                                                  1,779,052            444,763
          Average Portfolio Occupancy                                                                             90%
          Average Portfolio Occupancy - excluding vacation periods                                                96%
          Credit Reserve Level                                                                             12,000,000
          Periodic Fee                                                                                            Nil
          Refinancing LTV                                                                                       70.3%


          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                                                           30,376,945          5,461,259
          Permitted Operating Costs                                                    (3,471,702)          (764,120)
          Scheduled Property Management Fee                                              (594,021)          (150,008)
          Capex Reserving                                                              (1,779,052)          (444,763)
                                                                                        24,532,170          4,102,368

          Alternative Debt Service                                                      20,015,671          5,004,136

                                                                                              123%                82%


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