RNS Number:8611N
Warner Estate Holdings PLC
23 July 2003



  WARNER ESTATE AGREES FUNDING PACKAGE FOR #109M REGIONAL OFFICE FUND WITH THE
                             ROYAL BANK OF SCOTLAND



Warner Estate Holdings PLC, the property investment company ("Warner Estate"),
and joint venture partner The Royal Bank of Scotland ("RBS") have announced the
formation of a Regional Fund (the "Fund"), to be owned 50/50 in a joint venture
between them.



This is the second major property fund launched by Warner Estate.  In March,
Warner Estate established the #223 million Agora Shopping Centre Fund focused on
shopping centres in the Northwest of England.



At its inception, the Fund will comprise six large regional office buildings
located throughout the UK, valued at #109 million.   The aim of the Fund will be
to produce consistent high investment returns from the ownership and active
management of a portfolio of substantial regional office buildings.  The six
properties in the fund are:



Edinburgh - Apex 123 - 9,044 sq. m (94,683 sq. ft)

The property comprises a modern air-conditioned office located in central
Edinburgh, let to tenants including The Secretary of State, Scottish Enterprise
and Abbey National.



Birmingham, Solihull - Sapphire Court - 8,040 sq. m (86,541 sq. ft)

The property was refurbished in 1997 and is let on long leases to a range of
tenants with excellent covenants, 48% of which are government backed.



Kingston - Lever House & Surrey Court - 14,251 sq. m (153,396 sq. ft)

This island site in central Kingston is an office and retail scheme, let
predominately to Lever Brothers on a long-lease until 2072.



Glasgow - Bath Street - 8,183 sq. m (88,084 sq. ft)

This property is located in central Glasgow with large floor plates of 14,425
sq. ft.  It is let to National Australia Group and Teletech.



Bournemouth, Holland House - 7,450 sq. m (80,187 sq. ft)

The building is a prominently located office building let on a single lease to
the Government until 2028 with a break in 2023.



Leeds, Yorkshire House - 7,315 sq. m (78,738 sq. ft)

The property is a multi-tenanted city centre office building with a range of
popular bars and restaurants on the ground floor.



This portfolio has a current rent roll of #8.49 million.  The current initial
yield on the portfolio is 7.27% with a reversionary yield of 7.54%. The total
space under management will be 581,000 sq.ft.



Warner Estate is selling the six office properties which it owns outright into
the Fund for #109 million. The proceeds from the disposal will be used to reduce
gearing and to provide resources for reinvestment in future opportunities.



Warner Estate will be responsible for property asset management for the Fund,
receiving management fees for that role.



Following the launch of the Fund, Warner Estate will have approximately #644
million of property under management.



Philip Warner, Chairman of Warner Estate commented,



"  This is a further significant move for Warner Estate and we are delighted to
be working with RBS - we both believe that there are resilient strengths in the
regional office sector and our complementary style, strategy and investment
criteria are well illustrated in this purchase.



"  Research has indicated that many of the known regional office markets are not
subjected to major fluctuations in value.  In the big eight regional centres,
tenants tend to make their choice of location and then remain.  By creating a
portfolio, which spans the breadth of the UK, we have created a growth vehicle,
which has defensive characteristics and the potential to continue to perform
well in a slower market.



"  This year, we have created two major property funds building a good track
record of creating and managing property funds which offer large institutions an
excellent route to direct property investment.  Our business model remains
strong and I look forward to the future with confidence."



Johnny Cameron, Chief Executive, Corporate Banking & Financial Markets added "We
are delighted to be working closely with Warner Estate on this portfolio - it
fits well with our philosophy of developing strategic level relationships across
our business from which further opportunities will flow".





                                     -ends-



Date: 23 July 2003

For further information contact:


Warner Estate Holdings PLC                                City Profile
Philip Warner, Chairman                                   Simon Courtenay
Richard Moore, Property Director                          Tel: 020-7448-3244
Peter Collins, Finance Director
Tel: 020-7907-5100
Web: www.warnerestate.co.uk










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