RNS Number:9792M
Property Fund Management plc
01 July 2003

Property Fund Management plc

Insurance Broking Joint Venture with Prudential Property Investment Managers
Limited

Property Fund Management plc ("PFM" or "the Company"), the quoted specialist
property fund manager, is pleased to announce the establishment of Ascent
Insurance Brokers Limited ("AIB"), a co-owned insurance broking joint venture
with Prudential Property Investment Managers Limited ("PruPIM"). As an integral
part of the joint venture, PFM and PruPIM has each also given undertakings to
AIB to use its reasonable endeavours to procure that its requirements for
broking and placing of property related insurance, risk management services and
ancillary requirements on behalf of its relevant funds are referred to AIB on an
on-going basis. The IO Group Limited, a subsidiary of PFM, will transfer its
100% interest in Thames Insurance Brokers Limited for a consideration of
#125,000 satisfied by the receipt of a 50% shareholding in AIB. PruPIM will
transfer into AIB its in-house property portfolio insurance function of
equivalent value in return for the remaining 50% interest. AIB will therefore
have initial net assets of #250,000. AIB is also to receive from PruPIM a fee of
#200,000 per annum for the administration of the business referred to it by
PruPIM. In conjunction with the establishment of AIB, the parties have
additionally agreed put and call option arrangements exercisable in one year's
time under which (based on valuations to assess the value of business generated
by AIB, and subject to any requisite shareholder approval) the joint venture
arrangements would be unwound and the PFM group would acquire the 50% interest
held by PruPIM. As at 31 December 2002, the net assets of Thames Insurance
Brokers Limited were #25,562 and pre-tax profit for the year then ended was
#372,425.

AIB aims to be a leading property insurance broker using the platform of this
combination of two well-respected and established insurance broking teams who
bring a wealth of knowledge and expertise in this specialist market. The AIB
board will initially be constituted by Andrew Hearn and Duncan Cogdell, with
Andrew Yates and Chris Nutten as shareholder representative directors of PFM and
PruPIM respectively. Andrew Yates' role as Finance Director of PFM will be
unaffected by the joint venture arrangements.

Andrew Yates, Finance Director of PFM, commented: "At PFM we consider this to be
a tremendous opportunity to combine the skills, experience and reputations of
two industry leading insurance teams. We believe that AIB will rapidly build
upon this base to become the leading specialist property insurance broker in the
UK."


30 June 2003

Enquiries:          Andrew Yates, Finance Director           Tel: 020 7535 1818
                    Property Management plc


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