Interim Management Statement

Warner Estate Holdings PLC (the 'Group')

Interim Management Statement

Business Review:

The Group's headline performance for the first quarter of the year benefited from the disposal of the Radial Distribution asset management contract and joint venture equity interest. Rental income and management fees are otherwise being maintained in line with the preceding period. The Group is now benefiting fully from the substantial cost saving initiatives implemented last year.

Refinancing:

Following the refinancing of the Group's facilities, secured on its wholly owned assets, in March this year, the Group's refinancing focus is on its shopping centre joint venture interests. Discussions with each of the Group's joint venture lenders continue with satisfactory and constructive progress being made. The Directors will provide further updates regarding these discussions as and when appropriate.

Property: As indicated in the 2010 Report and Accounts the Group continues to make substantial progress reducing voids in the wholly owned portfolio to 9.8% (March 2010: 19.4%). This significant reduction arises from the disposal of two predominantly vacant office buildings, in Richmond and the fringe of the City of London, and the continuation of letting the Group's largest void, 60 New Broad Street, City of London. Only one floor (8,600 sq ft) of 60 New Broad Street remains to be let with two recent lettings (17,520 sq ft) completed on improved terms and with a further floor under offer. The wholly owned portfolio has also benefited from the letting of a challenging void in Swindon to a leading golf buggy manufacturer, Yuasa. These new lettings will deliver additional Group cash flow of c. £0.9million, after incentives and rent free periods.

The disposals of the two properties referred to above were achieved for marginally more than their March 2010 values; the proceeds, £10.75m, have been used to reduce debt.

Rent collection statistics, across the entire portfolio under management, remain excellent at 98.3% collected within 28 days of the due date.

The uncertain economic outlook, limited availability of debt and a weak occupier market continue to restrain growth. Maintaining income remains paramount and plays well to the Group's asset management expertise to service both existing mandates and those which we aim to win.

-ends-

Date: 19th August 2010

For further enquiries please contact: Warner Estate Holdings PLC Philip Warner, Chairman Mark Keogh, Group Managing Director Robert Game, Group Managing Director - Property

Tel: 020-7907-5100 Web: www.warnerestate.co.uk

City ProfileJonathan GillenSimon Courtenay Tel: 020-7448-3244