Key themes. Solid NAV growth - 8.3% increase in adjusted, fully diluted NAV per share - Driven by development activity, rental growth and yields

(1)

(2)

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}

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}

(3)

Headline results

2 ↑ 32% 78% 110% 110% Adjusted gearing (net debt as % of adjusted NAV)

↑ 2% 33,944

34,652

34,652 Completed and managed beds at end of period

↑ 20% £1.09bn

£

£1.31bn1.31bn

Portfolio value (including share of JVs) Portfolio Portfolio Portfolio Portfolio ↑↑↑↑ 17%17%17%17% £ £ £ £2.3m2.3m2.3m2.3m £ £ £ £ £ £ £ £2.7m2.7m2.7m2.7m2.7m2.7m2.7m2.7m

Adjusted profit before tax Adjusted profit before tax Adjusted profit before tax Adjusted profit before tax

↓

53% £61.5m

£

£29.2m29.2m

Reported profit before tax

↓

27% £49.5m

£

£35.9m35.9m

Investment segment revenue Earnings Earnings Earnings Earnings ↑↑↑↑ 8.38.38.38.3%%%% 425p 425p425p 425p 460p 460p460p 460p 460p 460p460p 460p Adjusted 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% 428p

463p

463p Adjusted NAV per share

↑ 6.6% 391p

417p

417p Basic NAV per share (IFRS)

Net Asset Value Net Asset Value Net Asset Value Net Asset Value

Change ChangeChange Change HI 2006 HI 2006 HI 2006 HI 2006 YE 2006 YE 2006 YE 2006 YE 2006 H1 2007 H1 2007H1 2007 H1 2007 H1 2007 H1 2007 H1 2007 H1 2007

(4)

Market update

Student 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 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

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 2007 Initial Yield %

Uni te Compl eted Por tfol i o Uni te Compl eted Por tfol i o Uni te Compl eted Por tfol i o

(5)

Delivering our strategy

-USAF

Riverside Point, Nottingham Beaumont

Court, London The Plaza,

Leeds

Central Quay, Sheffield

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}

(6)

Delivering our strategy –

Deepening pipeline with focus on quality

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}

354 354 354 354 3,143 3,143 3,143 3,143 Total Total Total Total 775 1,608 760 Beds Beds Beds Beds

* Oxford, Cambridge, Reading

72 New Cities 94 Established cities 188 London Est Value Est Value Est Value Est Value ££££mmmm Secured in the period

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

3,235 3,235 3,235 3,235 2,134 1,101 Beds Beds Beds Beds 339 339 339 339 Total Total Total Total 138 Rest of UK 201 London Est Value Est Value Est Value Est Value ££££mmmm Planning consents in the period

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

(7)

332 332 332 332 28 2828 28 220 220220 220 528 528528 528 London London London London Varsity / Varsity / Varsity / Varsity / High Growth High Growth High Growth High Growth Uni Uni Uni Uni Partnership Partnership Partnership Partnership E stablished E stablished E stablished E stablished

The Development

portfolio

Riverside Point -Completed September ₆ 1,326 14,464 865 11,478 Reported at Prelims 725 7,834 2009+ 384 3,370 169 729 2008 – JV 215 2,641 2008 – UNITE 217 3,260 56 558 2007 – JV 161 2,702 2007 UNITE Completed Value Completed Value Completed Value Completed Value ££££mmmm Beds

Beds Beds Beds Secured Future Developments

Secured Future Developments Secured Future Developments Secured Future Developments

131.6 (14.3) 20.6 125.2 £ £ £ £mmmm 501 31 December 2006 567 Built-out adjusted NAV (↑ 13%)

107 (12) JV partner share 17 NAV to recognise: JVs 102 NAV to recognise: wholly owned

Fd pps Fd pps Fd pps Fd pps Built Built Built

(8)

Operating update –

Increasing Competitive Advantage

Operations

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 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

Financing

Intention to unwind UFO

-

_{enables proactive management of properties}

-

_{anticipated 2 year payback of exit costs}

(9)

Net asset value growth

386 359

422 NNNAV per share

111% 154%

141% See through gearing

78% 145%

110% Gearing (on adjusted NAV)

425 425425 425 416 416 416 416 460 460 460 460 Fully diluted

Fully dilutedFully diluted Fully diluted

428 420

463 Adjusted NAV per share

(1) 2

(7) MTM of interest rate hedges

36 53

39 Provision for deferred tax

2

-14 NAV on development properties

held in current assets

391 365

417 NAV per share (IFRS)

Dec 06 Dec 06 Dec 06 Dec 06 pps pps pps pps Jun 06 Jun 06 Jun 06 Jun 06 pps ppspps pps Jun 07 Jun 07 Jun 07 Jun 07 pps ppspps pps

Note: includes share of JVs

202 102 248 82 67 89 JVs 120 35 159 UNITE £m £m £m Capital Programme: 8.3% 35 45 4.3% 19 24 Development surpluses 2.1% 8 11 - Yield compression 1.9% 8 10 - Net rental growth

Investment portfolio % NAVPS % NAVPS % NAVPS % NAVPS fd fd fd fd pps pps pps pps £ £ £ £mmmm Jun 07 Jun 07 Jun 07

(10)

The investment portfolio

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

UNITE wholly owned 6.7%

UCC 5.6%

USV 6.0%

USAF 5.2%

Average portfolio initial yields Average portfolio initial yields Average portfolio initial yields

Average portfolio initial yields 2006 FY 2007 HY 390 390 390 390 (612) (612) (612) (612) 1,002 1,002 1,002 1,002 752 752 752 752 250 250 250 250 34,652 34,652 34,652 34,652 370 (587) 957 680 277 33,944 31 December 2006 14 (37) 51 25 26 2,126 50% USV Share 23 (35) 58 58 -1,958 30% UCC share 73 (81) 154 154 -11,759 29% USAF share -3,015 Leased 280 (459) 739 515 224 15,794 Wholly owned NAV NAVNAV NAV Debt Debt Debt Debt GAV GAV GAV GAV Stabilised StabilisedStabilised Stabilised Stabilising Stabilising Stabilising Stabilising Beds BedsBeds Beds Stake Stake Stake Stake

Investment 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%

(11)

USAF / joint venture

performance

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

(12)

Portfolio performance

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

6,428 6,428 6,428 6,428 7,218 7,2187,218 7,218 50+ week tenancies 91% 91% 91% 91% 92% 92%92% 92% Reservations (% available rooms)

33,944 33,944 33,944 33,944 37,682 37,682 37,682 37,682 Total beds in operation

06 / 07 06 / 0706 / 07 06 / 07 07 / 08 07 / 0807 / 08 07 / 08 2007 / 08 Academic Year 2007 / 08 Academic Year 2007 / 08 Academic Year 2007 / 08 Academic Year (3.4) (3.4) (3.4) (3.4) (3.5) (3.5) (3.5) (3.5) Rentals under sale & leaseback

assets 37.7 37.7 37.7 37.7 29.2 29.2 29.2 29.2 29.8 29.8 29.8 29.8 25.2 25.2 25.2 25.2 Investment result before interest

(4.9) (4.9) (4.9) (4.9) (5.6) (5.6) (5.6) (5.6) Portfolio overhead ----3.4 3.43.4 3.4 - Performance 0.4 0.4 0.4 0.4 1.7 1.71.7 1.7 JV fees – Management (13.5) (13.5)(13.5) (13.5) (12.4) (12.4)(12.4) (12.4) Direct operating costs

51.2 51.2 51.2 51.2 41.6 41.6 41.6 41.6 Gross 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)

(13)

Adjusted profit before tax

61.5 29.2

Profit before tax per income statement Profit before tax per income statement Profit before tax per income statement Profit before tax per income statement

4.1 2.9

Ineffective hedge charge

55.1 23.6

Revaluation of investment portfolio/JVs Major IFRS items:

2.3 2.3 2.3 2.3 2.7 2.7 2.7 2.7 Adjusted profit before tax

Adjusted profit before tax Adjusted profit before tax Adjusted profit before tax

(3.0) (3.3)

Corporate costs

(2.5) (1.2)

Non rental activities (including pre contract costs)

7.8 7.8 7.8 7.8 7.2 7.2 7.2 7.2 Portfolio Profit Portfolio Profit Portfolio Profit Portfolio Profit (22.0) (18.0)

Net interest charge (inc. share of JVs)

29.8 25.2

Investment result before interest

H1 2006 H1 2006 H1 2006 H1 2006 £ £ £ £mmmm HI 2007 HI 2007HI 2007 HI 2007 £ ££ £mmmm

(14)

Unite finance one plc 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 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)

(15)

UNITE FINANCE ONE PLC BOND –

Status 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

– – –

(16)

UFO redemption –

Estimated Financial Impacts

16.7 21.0 33.0 41.4 (12.6) (15.7) (12.6) (15.7)

Future tax benefit Future tax benefit Future tax benefit Future tax benefit

57.1 4.6 6.3 20.4 25.8 £m

Adjusted NAV

30 June

45.6 3.7 5.0 16.3 20.6 pps 29.3 36.7

Estimated NAV impact Estimated NAV impact Estimated NAV impact Estimated NAV impact

3.7 4.6

Transaction and other costs Transaction and other costs Transaction and other costs Transaction and other costs

5.0 6.3

Unamortised UFO costs write off Unamortised UFO costs write off Unamortised UFO costs write off Unamortised UFO costs write off Current market value adjustment Current market value adjustment Current market value adjustment Current market value adjustment

20.6 25.8

Redemption cost to current market value Redemption cost to current market value Redemption cost to current market value Redemption cost to current market value

pps £m

Market Value

13 September

(17)

Summary and outlook

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}

(18)

appendice

s

H1 07 impact of USAF

UNITE top 10 Markets

Our property portfolio

NNNAV calculation

Debt

(19)

H1 impact of USAF

7.5 0.3 7.2 Portfolio profit (23.4) (5.4) (18.0) Net interest charge

30.9 5.7

25.2 Investment result before interest

(5.6) -(5.6) Portfolio overhead -(3.4) 3.4 - Performance 0.7 (1.0) 1.7 JV fees – Management (3.5) -(3.5) Rentals under sale & leaseback assets

(16.6) (4.2)

(12.4) Direct operating costs

55.9 14.3

41.6 Gross rental income

Proforma H1 07 Proforma H1 07 Proforma H1 07 Proforma H1 07 £ £ £ £mmmm Estimated USAF Estimated USAF Estimated USAF Estimated USAF impact impact impact impact 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)

(20)

Unite top 10 markets

4% 7% 10% 3% 6% 4% 5% 8% 1% 10% 9% Projected Projected Projected Projected Market Market Market Market Share ShareShare Share 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 Rank RankRank Rank 5% Cardiff 7 3% Glasgow 8 4% Portsmouth 9 6% Leeds 6 9% Manchester 5 3% Aberdeen 10 8% Liverpool 3 14% London 4 10% Bristol 2 6% Sheffield 1 3Yr Growth 3Yr Growth 3Yr Growth 3Yr Growth in FT in FT in FT in FT Student Student Student Student Numbers Numbers Numbers Numbers City CityCity City 2006 2006 2006 2006 Rank RankRank Rank

(21)

Our property portfolio

2,878 172 49,149 1,326 51 14,464 725 24 7,834 2009+ 169 4 729 2008 – JV 214 11 2,641 2008 – UNITE 56 4 558 2007 – JV 161 8 2,702 2007 – UNITE Development Portfolio: Development Portfolio: Development Portfolio: Development Portfolio: -8 3,015 Beds under management

1,552 113 31,670 525 33 11,759 USAF Properties 283 12 3,992 Joint venture properties

82 6 1,627 2007 acquisitions 663 62 14,292 2006 and prior Completed Portfolio: Completed Portfolio: Completed Portfolio: Completed Portfolio: Completed Value Completed Value Completed Value Completed Value £££m£mmm Properties PropertiesProperties Properties Beds BedsBeds Beds