Interim Management Statement

Warner Estate Holdings PLC ("Warner Estate" or "Group")

Interim Management Statement

Business Review:

The Group's position has steadied during the months following our half year results. Rental income has been maintained and, in line with property values, management fees have stabilised. Cost saving initiatives continue to be delivered in line with reductions established in the first half of the year. In addition, the Group has benefited in the quarter from a one off performance fee of £1.1million, arising from periods prior to 2008.

The Group was profitable and cash generative in the quarter to December 2009 resulting in a reduction of net debt from £250m to £248m.

Refinancing:

As detailed in the half year results announcement last November, discussions with each of the Group's lenders continue and satisfactory and constructive progress is being made. The Directors will provide a further update regarding these discussions as and when appropriate.

Property:

Since reporting last November, we have made substantial progress with reducing voids. In the City of London, the Group's largest void, 60 New Broad Street, has benefited from the general up-turn in activity, with the letting of a further two floors (13,130 sq. ft.) bringing the total letting to 20,920 sq. ft. and strong interest in the remaining four floors (34,720 sq. ft.).

Within the Wholly Owned portfolio there has been little sales activity. Proceeds of £1.56 million were realised from two asset sales at 4% above current valuation.

On a like-for-like basis, contracted rent levels on the managed portfolio have fallen marginally from £144.4m to £143.7m. Rent collection statistics have held constant at 96% collected within 28 days of the due date.

As we move towards the formal year end revaluation at 31st March 2010, we are encouraged by the growth in investment volumes and the continued valuation recovery across all the main sub-sectors, partly evidenced by a slight rise in the value of the units held by the Group in the Ashtenne Industrial Fund and the Apia Regional Office Fund for the quarter to 31st December 2009.

General Meeting:

With reference to the announcement on 1st February 2010, it is anticipated that the circular calling a General Meeting to approve a suspension of the borrowing limit in the Articles of Association will be posted to shareholders shortly.

17th February 2010

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