Interim Management Statement

Warner Estate Holdings PLC

("the Company" or "the Group")

Interim Management Statement

As announced on 31st July 2012, the Group has been in negotiations with an affiliate of The Royal Bank of Scotland ('the RBS Affiliate') to agree a proposal for the RBS Affiliate, directly or indirectly, obtaining control of its secured real estate and related assets together with the benefit of certain of its other secured assets. The directors of two of the Group subsidiaries, Warner Estate Investments Limited and Warner Estate Development (Folkestone) Limited, have consensually agreed with the RBS Affiliate to appoint fixed charge receivers over certain secured real estate assets of those two companies as the preferred option to maximise the return to this lender.

The Group continues negotiations with the RBS Affiliate in relation to the remaining assets over which it has security.

The Company has informed its other two secured lenders, Lloyds Banking Group and Barclays, of this situation and continues to work with them to deliver their preferred solutions agreed last year and announced previously, whilst also developing their contingency plans.

The Group continues to make progress on the disposal of its wholly owned portfolio to reduce debt. Since the announcement on 31st July 2012 the Group has sold one London asset for £7.05m and exchanged conditional contracts on a further two assets in London and the south east for £5.65m .

The Group is pleased to report that it has completed the divestment of its joint venture property investments with the disposal of its 50% equity interest in Agora Shopping Centres Limited for £1 to 24 Bruton Place Limited. The investment has been held at £Nil on the Company's balance sheet for a number of years.

The 31st July 2012 announcement explained that the strategic aim of the Group is now to focus solely on asset management activities, initially based on the Ashtenne Industrial Fund and the Apia Regional Office Fund. Both the above consensual appointment of fixed charge receivers and completion of the divestment of the Group's JV equity interests were anticipated steps towards the achievement of this objective.

However, the Group remains reliant on the continuing support of its lenders and the outcome of the negotiations with them will determine the Group's future.

17 August 2012

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