Update on discussions with lenders

Warner Estate Holdings PLC

("Warner Estate" or "the Group")

Update on discussions with lenders

Warner Estate announces that further to previous announcements, the Group has continued discussions with its three lenders.

Following the completion of a consensual disposal programme with one of the lenders, the Group has reached a mutually satisfactory agreement to release the relevant borrowing Group subsidiary from all of its obligations to that lender including its outstanding debt and interest of £23.2m. As anticipated in our 2012 Half Year Report, this allows the relevant subsidiary to be put into members' voluntary liquidation on a solvent basis and, accordingly, a liquidator will be appointed to that subsidiary.

As previously announced, the other two lenders reserved their rights in respect of the remaining two Group facilities which matured on 31 December 2012. The Group continues to discuss with these lenders, and other key stakeholders, options to release the security still held over its asset management business and its units in the Ashtenne Industrial Fund (AIF). The objectives of these options are to realise value for the lenders and to provide continuity of existing asset management services. These options are expected to realise little or no value for shareholders.

The viability of the asset management business is dependent on the continuing support of its lenders and other key stakeholders, the timing and quantum of management fee income and the implementation of further cost savings.

 20 June 2013

-ends-

For further information contact:

Warner Estate Holdings PLC

Philip Warner, Chairman

Mark Keogh, Group Managing Director

Robert Game, Group Managing Director, Property

Tel: 020 7907 5100

www.warnerestate.com

Numis

Heraclis Economides

Tel: 020 7260 1224