RNS Number:2288I
Property Fund Management plc
05 March 2003


FOR IMMEDIATE RELEASE
5th March 2003



   PROPERTY FUND MANAGEMENT LAUNCHES SPANISH JOINT VENTURE WITH LAR GROSVENOR

Property Fund Management plc ("PFM"), the UK-based specialist industrial
property asset manager, today announces the expansion of its European network
into Spain through a 50:50 joint venture with the Spanish development and
investment company Lar Grosvenor.

The joint venture will be branded io Lar Grosvenor, based in Madrid, and will
unite PFM's proven expertise in the multi-let industrial sector with La
Grosvenor's knowledge and experience of the Spanish development market. io Lar
Grosvenor will initially carry out a Euro200 million industrial development
programme of multi-occupier industrial estates in Spain on behalf of
institutional investors.

The move represents the latest phase in PFM's successful programme of exporting
its proven management methodology in multi-let industrial estates to mainland
Europe. The group has become the market leader in forming and managing
collective investment and development vehicles which allow institutional
investors access to the high yielding European industrial investment markets. It
currently has offices in London, Birmingham, Edinburgh, Paris, Berlin and
Amsterdam.

Richard Croft International Investment Director of PFM's main operating
subsidiary iOG, said: "Spain is then next logical step in our European expansion
strategy. Our extensive research into European industrial markets shows there is
tremendous potential for PFM's products and asset management style in Spain.  We
found in Lar Grosvenor an ideal joint venture partner with complementary skills
and a wealth of local property experience."

Lar Grosvenor is itself a 50:50 joint venture between Grupo Lar of Spain and
Grosvenor, the UK property company. It was set up to develop, invest in and
manage offices, shopping centres and industrial parks in Spain.

Alvaro Arteaga Biforcos, Director of io Lar Grosvenor, said: "PFM has
demonstrated that with the right local knowledge and expertise, its specialist
management approach can work successfully in European markets. We are confident
that io Lar Grosvenor can replicate the successes achieved to date in the UK,
France, Germany and the Netherlands and look forward to working with PFM on this
exciting venture."

PFM is now researching its next European move and is looking to open two new
offices in the next 6 months. It is currently considering Italy, Portugal,
Belgium and Denmark as possible target locations.

The company reports that it is on target to complete its Euro580m investment
programme for its European Industrial Partnership ("EIP") fund by the end of
June 2003. At the start of 2003 Euro400m of property acquisitions for EIP had been
completed and a further Euro130m of acquisitions are currently under offer.

Within the UK PFM, on behalf of its retained funds, has acquired 44 industrial
estates with a combined value of #154m during 2002 and since the beginning of
2003 a further #25m of properties have been acquired through The Industrial
Trust, a fund it runs jointly with PPIM.

During 2002 PFM sold more #75m of property which completed the successful
disinvestment of the Industrial Partnership and completed the fund's six year
programme. Over its duration the Industrial Partnership produced an ungeared
property return of 16% compared with the IPD monthly industrial index of 13.06%.

Finally PFM's joint venture distribution warehouse development company,
Vanbrugh, has been commissioned by UK owner occupiers to provide 350,000 sq ft
of accommodation. In west London a major UK retailer has agreed heads of terms
for a 250,000 sq ft distribution warehouse complex to be developed on a design
and build contract. While a further 100,000 sq ft of warehousing in south London
is expect to proceed on similar terms shortly.

                                    - End -



Contact:     Property Fund Management plc.                  Tel: 020 7535 1818
             John Sims, Chief Executive
             Andrew Yates, Finance Director

             Baron Phillips Associates                      Tel: 07050 124119
             Baron Phillips



NOTES TO EDITORS

PFM Background

Since 1996, the group has set up three collective investment vehicles in the UK
which have between them acquired more than #450 million of industrial
properties, subsequently managed on behalf of investors.

PFM has also launched two industrial development funds, enabling the development
to date of 19 new developments with an investment value of #175 million. These
new developments provide brand new industrial accommodation to buy or rent on
extremely flexible lease terms, in response to occupier demand.

PFM launched its first European fund, the European Industrial Partnership (EIP),
in collaboration with AXA REIM. The fund raised Euro232 million which when fully
invested will generate Euro580 million of funds under management. Initial
investments have been in France, Germany and the Netherlands.

                      This information is provided by RNS
            The company news service from the London Stock Exchange
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