RNS Number:5519T
Property Fund Management plc
22 December 2003





FOR IMMEDIATE RELEASE

22nd December 2003


                           PROPERTY FUND MANAGEMENT plc:

                                 TRADING UPDATE


In the interim results statement announced on 22 September 2003, the board of
PFM indicated that it anticipated closing further funds in the last quarter of
2003. The principal fund being closed is the Euro750 million Euroind High Income
Fund ("EHI"). However, following discussions with investors, there have been a
number of significant changes to the structure of EHI that increase the fund's
tax efficiency and include a re-weighting of the fee structure throughout the
life of the fund, which the directors of PFM believe will be beneficial to fund
returns. Unfortunately, these changes have also resulted in a delay to the
closure of EHI, which it is now anticipated will take place in the first quarter
of 2004.


This delay to the launch of EHI will have an impact on the profit before tax for
PFM for the current year with much of the associated revenue now being accounted
for in 2004. The directors expect that the profit before tax for PFM for the
current year will be around #1 million which is below market forecasts. However,
there will be an increase in the profit before tax for 2004 which the directors
believe will now be ahead of current market forecasts.


In addition, the directors are pleased to announce that the launch of a new UK
fund and a Polish fund are well advanced. Including the EHI initiative, these
funds are anticipated to increase PFM's funds under management by around #800
million.


John Sims, Chief Executive of PFM, commented:


"Clearly we are disappointed that the timing of our major European expansion
fund has been delayed, but we are confident that the fund will close in the
first quarter of 2004 and we already have over Euro250 million of property
acquisitions in solicitors' hands.


We are pleased, however, with the revised structure which will significantly
improve fund returns and consequently will benefit PFM and its shareholders over
the eight year life of the fund.


The launch of a new UK fund and a Polish fund continue to progress well and,
together with EHI, will double funds under management to approximately #1.6
billion. We look forward to 2004 with confidence."

                                     Ends.


Enquiries:

Property Fund Management plc                    Tel: 020 7535 1818
John Sims, Chief Executive

Williams de Broe Plc                            Tel: 020 7588 7511
Jonathan Gray

Baron Phillips Associates                       Tel: 020 7920 3161
Baron Phillips







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