RNS Number:6559I
Property Fund Management plc
12 March 2003

Property Fund Management plc

Acquisition


Further to the announcement yesterday of its preliminary results for the year to
31 December 2002, Property Fund Management plc ("PFM" or "the Company"), the
quoted specialist property fund manager, is also pleased to announce that it has
reached agreement to acquire the outstanding 50 per cent. interest in its Dutch
joint venture company, The io Group Netherlands BV ("io BV"), from its joint
venture partner, Intrecon Holding BV, for a consideration of up to Euro3.5 million.
The consideration will consist of an initial payment of Euro1.5 million, comprising
a cash payment of Euro0.5 million and the issue of new ordinary shares of 5p each
in the capital of the Company to the value of Euro1.0 million ("the Consideration
Shares"), and a deferred payment of up to Euro2.0 million, dependant on the level
of acquisition fees received by io BV in respect of the acquisition of certain
properties in the Netherlands during a period of 36 months from the date of the
agreement. The number of Consideration Shares to be issued as part of the
initial consideration will be determined by reference to the average closing mid
market price of the Company's shares on 11 and 12 March 2003 converted into
Euros at an agreed rate. The acquisition is conditional on admission of the
Consideration Shares to the Official List of the UK Listing Authority and to
trading on the London Stock Exchange, which is expected to take place on 17
March 2003 ("the Completion Date"). The Consideration Shares will rank pari
passu in all respects with the existing ordinary shares in the capital of the
Company except that they will not rank for any dividend declared in respect of
the year ending 31 December 2002. The Consideration Shares will be subject to a
lock-in agreement for a period of 36 months from the Completion Date.


io BV is one of three European joint ventures set up by PFM to provide a
territorial acquisition and asset management service for the European Industrial
Partnership, PFM's first European fund established in July 2001 and now on
course to complete its Euro580 million investment programme by the first half of
2003. As at 31 December 2002, io BV had net assets of Euro0.4 million and profit
before tax for the year to 31 December 2002 of Euro0.4 million. Other joint
ventures established to date are GVio SARL in France, io Management Germany GmbH
and io Lar Grosvenor SA in Spain.


Michael Ruhe will remain as managing director of io BV and will additionally
join the Board of The io Group Limited ("iOG"), PFM's principal operating
subsidiary, where he will work specifically on European expansion alongside
Richard Croft, iOG's International Investment Director.


John Sims, Chief Executive of PFM, commented: "The acquisition of the remaining
stake in io BV represents the first stage of the consolidation of our European
Network. Expansion of this Network and research into further territories is a
key aim for PFM in the coming years."


12 March 2003


Enquiries:

John Sims, Chief Executive                              Tel: 020 7535 1818

Property Fund Management plc




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