Key themes

� Strong progress against strategy

- Completion of USAF and strong fund performance over first six

months

- Deepened pipeline in London and high quality University markets

- Capital Cities JV fully invested

1

� Solid NAV growth

- 8.3% increase in adjusted, fully diluted NAV per share

- Driven by development activity, rental growth and yields

� Intention to complete move to Developer – Co-investing asset manager model

- Unwind of UFO and associated asset management programme

- Capital release to fund further development

� Stable valuation outlook

- 5.7% average stabilised yield at June 07

- Expect yields to be more resilient than other sectors in coming

months

Headline results

2

2

↑ 32%78%110%110%Adjusted gearing (net debt as % of adjusted NAV)

↑ 2%33,94434,65234,652Completed and managed beds at end of period

↑ 20%£1.09bn££1.31bn1.31bnPortfolio value (including share of JVs)

PortfolioPortfolioPortfolioPortfolio

↑↑↑↑ 17%17%17%17%££££2.3m2.3m2.3m2.3m££££££££2.7m2.7m2.7m2.7m2.7m2.7m2.7m2.7mAdjusted profit before taxAdjusted profit before taxAdjusted profit before taxAdjusted profit before tax

↓ 53%£61.5m££29.2m29.2mReported profit before tax

↓ 27%£49.5m££35.9m35.9mInvestment segment revenue

EarningsEarningsEarningsEarnings

↑↑↑↑ 8.38.38.38.3%%%%425p425p425p425p460p460p460p460p460p460p460p460pAdjusted NAV per share (fully diluted)Adjusted NAV per share (fully diluted)Adjusted NAV per share (fully diluted)Adjusted NAV per share (fully diluted)

↑ 8.2%428p463p463pAdjusted NAV per share

↑ 6.6%391p417p417pBasic NAV per share (IFRS)

Net Asset ValueNet Asset ValueNet Asset ValueNet Asset Value

ChangeChangeChangeChangeHI 2006HI 2006HI 2006HI 2006YE 2006YE 2006YE 2006YE 2006H1 2007H1 2007H1 2007H1 2007H1 2007H1 2007H1 2007H1 2007

Market update

3

Student MarketStudent MarketStudent MarketStudent Market

Demand Update

� Applications up 5.8% for 2007/08 academic

year

� Demographics continue favourable trend

� Government target maintained at 50% of all

18-30 year olds entering Higher Education

(current 43%)

� International students currently 14% of total

Competition and Supply

� General shortage of quality supply

� Universities upgrading or replacing existing

stock – not net suppliers

� Private landlords constrained by housing

shortage and Housing Act

� Competition remains regional/local

Investment MarketInvestment MarketInvestment MarketInvestment Market

UNITE yield vs UK Commercial Property

� Increasing investment in the sector

- £600m+ investment deals in last 12 months

- Increase in funds targeting sector

� Shortage of quality investment product

� Quasi-residential characteristics

� Yields remain well above property sector average

� Student rents resilient to economic cycles

4.00%4.20%4.40%4.60%4.80%5.00%5.20%5.40%5.60%5.80%6.00%6.20%6.40%6.60%6.80%

2004 H1 2005 2005 H1 2006 2006 H1 2007Initial Yield %

Uni te Completed Por tfol ioUni te Completed Por tfol ioUni te Completed Por tfol ioUni te Completed Por tfol io IPD Al l Proper tyIPD Al l Proper tyIPD Al l Proper tyIPD Al l Proper ty

Delivering our strategy -

USAF

Riverside Point, Nottingham

Beaumont Court, London

The Plaza, Leeds

The Bakery, Cardiff Central Quay, Sheffield 4

� USAF second closing April 2007

- Maximum £370m equity raised

- Oversubscribed

- Diversification benefits attractive

� Strong fund performance

- Total return of 14%

- £4.4m performance and management fees

accrued in H107

� Strategic benefits underlined

- £500m take-out capacity

- Next tranche of assets to be transferred Q4 07

- No redemptions until December 2009

Delivering our strategy –Deepening pipeline with focus on qualityDeepening pipeline with focus on qualityDeepening pipeline with focus on qualityDeepening pipeline with focus on quality

5

� Significant acquisition activity

- 3,143 beds secured for future delivery

� Focus on London and high quality markets

- Strongest and most resilient demand

- Largest proportion of international students

- Significant undersupply from specialist

providers

� Delivering valuable planning consents

- 11 achieved in period

- Remains a key strength

3543543543543,1433,1433,1433,143TotalTotalTotalTotal

775

1,608

760

BedsBedsBedsBeds

* Oxford, Cambridge, Reading

72New Cities

94Established cities

188London

Est Value Est Value Est Value Est Value ££££mmmm

Secured in the periodSecured in the periodSecured in the periodSecured in the period

3,2353,2353,2353,235

2,134

1,101

BedsBedsBedsBeds

339339339339TotalTotalTotalTotal

138Rest of UK

201London

Est Value Est Value Est Value Est Value ££££mmmm

Planning consents in the periodPlanning consents in the periodPlanning consents in the periodPlanning consents in the period

332332332332

28282828

220220220220

528528528528

LondonLondonLondonLondon

Varsity /Varsity /Varsity /Varsity /High GrowthHigh GrowthHigh GrowthHigh Growth

UniUniUniUniPartnershipPartnershipPartnershipPartnership

EstablishedEstablishedEstablishedEstablished

The Development

portfolio

Riverside Point -Completed September 2006

6

1,32614,464

86511,478Reported at Prelims

7257,8342009+

3843,370

1697292008 – JV

2152,6412008 – UNITE

2173,260

565582007 – JV

1612,7022007 UNITE

Completed Value Completed Value Completed Value Completed Value ££££mmmmBedsBedsBedsBeds

Secured Future DevelopmentsSecured Future DevelopmentsSecured Future DevelopmentsSecured Future Developments

131.6

(14.3)

20.6

125.2

££££mmmm

50131 December 2006

567Built-out adjusted NAV (↑ 13%)

107

(12)JV partner share

17NAV to recognise: JVs

102NAV to recognise: wholly owned

Fd ppsFd ppsFd ppsFd pps

BuiltBuiltBuiltBuilt----out adjusted NAVout adjusted NAVout adjusted NAVout adjusted NAV Secured Pipeline by value Secured Pipeline by value Secured Pipeline by value Secured Pipeline by value ££££m, 2008 +m, 2008 +m, 2008 +m, 2008 +

7

Operating update –Increasing Competitive AdvantageIncreasing Competitive AdvantageIncreasing Competitive AdvantageIncreasing Competitive Advantage

OperationsOperationsOperationsOperations

� Successful launch of on-line system

(www.unite-students.com)

- Back office efficiency improved

- Customer web experience

- CRM potential enhances marketing power

� ‘Customer Experience’ approach embedded

- Sophisticated research tools

- Dedicated brand standards team

- Internet offer improved

� Reservations at 92% for forthcoming academic year

Development and InvestmentDevelopment and InvestmentDevelopment and InvestmentDevelopment and Investment

� 3,260 new beds in 12 properties successfully opened

- target maintained at 20% profit on cost

� 2,267 modular beds delivered (70%)

� Base Limited acquisition completed and integrated

� Livocity pilot on track

FinancingFinancingFinancingFinancing

� Intention to unwind UFO

- enables proactive management of properties

- anticipated 2 year payback of exit costs

8

Net asset value growth

386359422NNNAV per share

111%154%141%See through gearing

78%145%110%Gearing (on adjusted NAV)

425425425425416416416416460460460460Fully dilutedFully dilutedFully dilutedFully diluted

428420463Adjusted NAV per share

(1)2(7)MTM of interest rate hedges

365339Provision for deferred tax

2-14NAV on development properties

held in current assets

391365417NAV per share (IFRS)

Dec 06Dec 06Dec 06Dec 06

ppsppsppspps

Jun 06Jun 06Jun 06Jun 06

ppsppsppspps

Jun 07Jun 07Jun 07Jun 07

ppsppsppspps

Note: includes share of JVs

202102248

826789� JVs

12035159� UNITE

£m£m£mCapital Programme:

8.3%3545

4.3%1924Development surpluses

2.1%811- Yield compression

1.9%810- Net rental growth

Investment portfolio

% NAVPS % NAVPS % NAVPS % NAVPS

fdfdfdfd

ppsppsppspps££££mmmm

Jun 07Jun 07Jun 07Jun 07 Jun 06Jun 06Jun 06Jun 06 Dec 06Dec 06Dec 06Dec 06

The investment portfolio

9

Stabil ising

Properties

Stabil ised

Properties

USAF Properties Annualised

USAF Dividend

Yield

Average Cost of DebtAverage Cost of DebtAverage Cost of DebtAverage Cost of Debt

UNITE wholly owned 6.7%

UCC 5.6%

USV 6.0%

USAF 5.2%

Average portfolio initial yieldsAverage portfolio initial yieldsAverage portfolio initial yieldsAverage portfolio initial yields 2006 FY

2007 HY

390390390390(612)(612)(612)(612)1,0021,0021,0021,00275275275275225025025025034,65234,65234,65234,652

370(587)95768027733,94431 December 2006

14(37)5125262,12650%USV Share

23(35)5858-1,95830%UCC share

73(81)154154-11,75929%USAF share

-----3,015Leased

280(459)73951522415,794Wholly owned

NAVNAVNAVNAVDebtDebtDebtDebtGAVGAVGAVGAVStabilisedStabilisedStabilisedStabilisedStabilisingStabilisingStabilisingStabilisingBedsBedsBedsBedsStakeStakeStakeStake

Investment AssetsInvestment AssetsInvestment AssetsInvestment Assets

4.0%4.0%4.0%4.0% 4.0%4.0%4.0%4.0%

5.7%5.7%5.7%5.7% 5.6%5.6%5.6%5.6%5.9%5.9%5.9%5.9%

5.7%5.7%5.7%5.7%5.0%5.0%5.0%5.0%

USAF / joint venture

performance

10

USAF UCC

USV

� Successful second closing completes £370m third party

investment commitment

� Half year total investor return of 14%

� UNITE performance and management fees of £4.4m, accrued

at half year

� £80m - £120m of asset transfers expected in Q4 2007

� UNITE stake of 29.3% will be diluted through transfers.

Expected long-term hold of c. 20%

� Restricted redemption rules give protection to investors

� Investment fully allocated. JV will operate 2,932

properties worth £394m on completion from Q4 2008

� Half year total return was 29%

� UNITE management fees of £0.7m accrued in the half

year

� Promote payable at end of JV life in 2013

� Plaza site in Leeds now stabilised and to be transferred

to USAF in 2007

� UNITE promote on Leeds exit of £0.8m

� Final phase of Sheffield property now open

Portfolio performance

11

5.8%5.8%5.8%5.8%6.2%6.2%6.2%6.2%Like-for-like revenue growth

6,4286,4286,4286,4287,2187,2187,2187,21850+ week tenancies

91%91%91%91%92%92%92%92%Reservations (% available rooms)

33,94433,94433,94433,94437,68237,68237,68237,682Total beds in operation

06 / 0706 / 0706 / 0706 / 0707 / 0807 / 0807 / 0807 / 08

2007 / 08 Academic Year2007 / 08 Academic Year2007 / 08 Academic Year2007 / 08 Academic Year

(3.4)(3.4)(3.4)(3.4)(3.5)(3.5)(3.5)(3.5)Rentals under sale & leaseback

assets

37.737.737.737.729.229.229.229.2

29.829.829.829.825.225.225.225.2Investment result before interest

(4.9)(4.9)(4.9)(4.9)(5.6)(5.6)(5.6)(5.6)Portfolio overhead

----3.43.43.43.4- Performance

0.40.40.40.41.71.71.71.7JV fees – Management

(13.5)(13.5)(13.5)(13.5)(12.4)(12.4)(12.4)(12.4)Direct operating costs

51.251.251.251.241.641.641.641.6Gross rental income

H1 06 H1 06 H1 06 H1 06

££££mmmm

H1 07 H1 07 H1 07 H1 07

££££mmmm

H1 2007 Performance (including share of JVs)H1 2007 Performance (including share of JVs)H1 2007 Performance (including share of JVs)H1 2007 Performance (including share of JVs)

Adjusted profit before tax

12

61.529.2Profit before tax per income statementProfit before tax per income statementProfit before tax per income statementProfit before tax per income statement

4.12.9Ineffective hedge charge

55.123.6Revaluation of investment portfolio/JVs

Major IFRS items:

2.32.32.32.32.72.72.72.7Adjusted profit before taxAdjusted profit before taxAdjusted profit before taxAdjusted profit before tax

(3.0)(3.3)Corporate costs

(2.5)(1.2)Non rental activities (including pre contract costs)

7.87.87.87.87.27.27.27.2Portfolio ProfitPortfolio ProfitPortfolio ProfitPortfolio Profit

(22.0)(18.0)Net interest charge (inc. share of JVs)

29.825.2Investment result before interest

H1 2006H1 2006H1 2006H1 2006

££££mmmm

HI 2007HI 2007HI 2007HI 2007

££££mmmm

13

Unite finance one plc bond

Strategy behind redeeming UFO Bond :Strategy behind redeeming UFO Bond :Strategy behind redeeming UFO Bond :Strategy behind redeeming UFO Bond :

� Free up properties to allow proactive asset management strategies

� Release of capital through external sale and transfer to USAF that can be redeployed to higher value activities

� Conclude move to Development – Stabilising – Co-investing asset management model

� Reduction in gearing post asset sales

Outline of the UFO PortfolioOutline of the UFO PortfolioOutline of the UFO PortfolioOutline of the UFO Portfolio

� 46 properties with a mix of leased, direct let and university nominations agreements

� Market value of assets of £452m as at 30 June 2007

� Market value of debt at 13 September 2007 of £285m

� Market value of debt of £280m as at 30 June 2007 disclosed in NNNAV (nominal value of £265m)

� Average interest rate on debt of 6.7% escalating over time as higher rated bonds amortise

14

UNITE FINANCE ONE PLC BOND –Status of TransactionStatus of TransactionStatus of TransactionStatus of Transaction

� Consent solicitation setting out redemption proposals issued to bond

holders 17 September 2007

� Proposals have been approved by a special committee of the Association

of British Insurers representing approximately 57% of the principal

amount of the Bonds

� The proposed transaction is expected to complete in November 2007

� Redemption to be financed by a bridge facility provided by Morgan

Stanley

–––– approved 12 September

UFO redemption – Estimated Financial ImpactsEstimated Financial ImpactsEstimated Financial ImpactsEstimated Financial Impacts

16.721.033.041.4

(12.6)(15.7)(12.6)(15.7)Future tax benefitFuture tax benefitFuture tax benefitFuture tax benefit

57.1

4.6

6.3

20.4

25.8

£m

Adjusted NAVAdjusted NAVAdjusted NAVAdjusted NAV

30 June30 June30 June30 June

45.6

3.7

5.0

16.3

20.6

pps

29.336.7Estimated NAV impactEstimated NAV impactEstimated NAV impactEstimated NAV impact

3.74.6Transaction and other costsTransaction and other costsTransaction and other costsTransaction and other costs

5.06.3Unamortised UFO costs write offUnamortised UFO costs write offUnamortised UFO costs write offUnamortised UFO costs write off

Current market value adjustmentCurrent market value adjustmentCurrent market value adjustmentCurrent market value adjustment

20.625.8Redemption cost to current market valueRedemption cost to current market valueRedemption cost to current market valueRedemption cost to current market value

pps£m

Market ValueMarket ValueMarket ValueMarket Value

13 September13 September13 September13 September

15

� Initial impact to raise gearing from 110% to 133%

Summary and outlook

16

� Strong progress against strategy in HI 07

� Valuable, secured pipeline for delivery over next 3

years

� IIIIntention to unwind UNITE Finance One

- Completes transition to new business model

- Releases capital for investment into

development activities

� Expect student accommodation yields to be resilient

over remainder of 2007

- Possible further opportunities in current

development market

appendice

s

17

� H1 07 impact of USAFH1 07 impact of USAFH1 07 impact of USAFH1 07 impact of USAF

� UNITE top 10 MarketsUNITE top 10 MarketsUNITE top 10 MarketsUNITE top 10 Markets

� Our property portfolioOur property portfolioOur property portfolioOur property portfolio

� NNNAV calculationNNNAV calculationNNNAV calculationNNNAV calculation

� DebtDebtDebtDebt

� Completed Properties 2007Completed Properties 2007Completed Properties 2007Completed Properties 2007

H1 impact of USAF

18

7.50.37.2Portfolio profit

(23.4)(5.4)(18.0)Net interest charge

30.95.725.2Investment result before interest

(5.6)-(5.6)Portfolio overhead

-(3.4)3.4- Performance

0.7(1.0)1.7JV fees – Management

(3.5)-(3.5)Rentals under sale & leaseback assets

(16.6)(4.2)(12.4)Direct operating costs

55.914.341.6Gross rental income

Proforma H1 07Proforma H1 07Proforma H1 07Proforma H1 07

££££mmmm

Estimated USAF Estimated USAF Estimated USAF Estimated USAF

impactimpactimpactimpact

Reported H1 07 Reported H1 07 Reported H1 07 Reported H1 07

££££mmmm

H1 2007 performance (including share of JVs)H1 2007 performance (including share of JVs)H1 2007 performance (including share of JVs)H1 2007 performance (including share of JVs)

Unite top 10 markets

4%

7%

10%

3%

6%

4%

5%

8%

1%

10%

9%

Projected Projected Projected Projected

Market Market Market Market

ShareShareShareShare

22,289

1,301

1,402

1,582

1,610

2,345

2,213

2,833

2,791

3,080

3,132

Completed Completed Completed Completed

Beds Beds Beds Beds

(06/07)(06/07)(06/07)(06/07)

23,035

1,301

1,402

1,582

1,610

2,083

2,213

2,833

3,133

3,357

3,521

Completed Completed Completed Completed

Beds Beds Beds Beds

(07/08)(07/08)(07/08)(07/08)

540,122

18,590

14,525

46,470

26,477

56,785

47,535

37,080

218,405

33,865

40,390

FT FT FT FT

Student Student Student Student

Numbers Numbers Numbers Numbers

(05/06)(05/06)(05/06)(05/06)

10

9

8

7

6

5

4

3

2

1

2007 2007 2007 2007

RankRankRankRank

5%Cardiff7

3%Glasgow8

4%Portsmouth9

6%Leeds6

9%Manchester5

3%Aberdeen10

8%Liverpool3

14%London4

10%Bristol2

6%Sheffield1

3Yr Growth 3Yr Growth 3Yr Growth 3Yr Growth

in FT in FT in FT in FT

Student Student Student Student

NumbersNumbersNumbersNumbers

CityCityCityCity2006 2006 2006 2006

RankRankRankRank

19

20

Our property portfolio

2,87817249,149

1,3265114,464

725247,8342009+

16947292008 – JV

214112,6412008 – UNITE

5645582007 – JV

16182,7022007 – UNITE

Development Portfolio:Development Portfolio:Development Portfolio:Development Portfolio:

-83,015Beds under management

1,55211331,670

5253311,759USAF Properties

283123,992Joint venture properties

8261,6272007 acquisitions

6636214,2922006 and prior

Completed Portfolio:Completed Portfolio:Completed Portfolio:Completed Portfolio:

Completed Value Completed Value Completed Value Completed Value ££££mmmmPropertiesPropertiesPropertiesPropertiesBedsBedsBedsBeds

nnnav

21

2.217.9Valuation gains not recognised on

properties held at cost

386p422pNNNAV per share

475.5520.0NNNAssets

2.5(2.1)Deferred tax

(10.4)(10.2)Fair value of fixed rate debt

481.2514.4Net assets

31 Dec 200631 Dec 200631 Dec 200631 Dec 2006

££££mmmm

30 June 200730 June 200730 June 200730 June 2007

££££mmmm

DEBT

22

30 Jun30 Jun30 Jun30 Jun 31 Dec 31 Dec 31 Dec 31 Dec

2007 2007 2007 2007 2006200620062006

Net Debt £627m £411m

Adjusted gearing 110% 78%

Adjusted see through gearing 141% 111%

Average life of investment debt 7.6 yrs 8.0 yrs

Average cost of investment debt 6.7% 6.7%

%hedged/fixed 87% 72%

Callice Court, coventry

Panmure Court, Edinburgh

William Morris halls, Loughborough

Charles Morton court, London

Phoenix Court, Bristol

Completed properties 2007

Corfe House, Poole

THE ANVIL, Sheffield

Piccadilly Point, Manchester