Spanish Property Fund Launch

RNS Number:9183Y
Property Fund Management plc
21 May 2004



FOR IMMEDIATE RELEASE

21 May 2004


         PFM LAUNCHES Euro100M SPANISH INDUSTRIAL PROPERTY DEVELOPMENT FUND

Property Fund Management plc ("PFM"), through its subsidiary iOG, today
announces the launch of iBERIND, a private equity investment programme set up to
develop multi-let industrial estates in Spain. This latest launch follows last
week's successful closing of the Euro700m Euroind High Income Fund.

iBERIND has been co-sponsored with Lar Grosvenor, a Spanish development group,
and Citigroup Property Investors, as well as PFM. The three sponsors have each
co-invested in the programme with the remaining equity coming from Citigroup
client funds under management.

The programme will be jointly managed between iO Lar Grosvenor, a joint venture
between iOG and Lar Grosvenor, and Citigroup. The fund has initially raised
Euro16.8m of equity with an option to increase the equity base to Euro34.9m, which if
taken up, would provide a development programme of circa Euro100m after gearing.

The programme is targeting approximately nine locations in and around Madrid,
Barcelona, Zaragoza, Valencia and Malaga. iO Lar Grosvenor will be responsible
for site acquisition and development of the assets, whilst Citigroup Property
Investors will be providing the fund management role. iBERIND is currently in
negotiations to acquire three sites.

Ends.


For Further Information Contact:

      John Sims, Chief Executive, PFM.                Tel: [phone]

      Richard Croft, Director, iOG                    Tel: [phone]

      Baron Phillips, Baron Phillips Associates        Tel: [phone]


Notes to Editors:

About Citigroup Alternative Investments / Citigroup Property Investors

Citigroup Alternative Investments is part of Citigroup Inc., the pre-eminent
global financial services company with some 200 million customer accounts in
more than 100 countries.

Citigroup Alternative Investments delivers alternative investment products to
qualified institutional and high net worth individual investors and is
responsible for investing, manufacturing, sourcing, structuring and marketing a
full suite of alternative investments on a global basis. The range of
alternative investments includes Global Credit Structures, Hedge Funds, Real
Estate, Private Equity, Managed Futures and Structured Alternative Investments.

Citigroup Property Investors (Citigroup Alternative Investments' real estate
investment centre), operates from London and New York giving investors access to
proprietary deal flow in residential, office, industrial, retail and land
properties in growing and established markets around the world. Clients benefit
from the network of relationships with reputable real estate operators, while
operating partners have the local construction and development expertise to find
commercial and residential property opportunities that provide the greatest
potential returns.

With a global sales and service force that covers Europe, Middle East, North
America, Latin America and Asia-Pacific, Citigroup Alternative Investments has
distribution arrangements with The Citigroup Private Bank, Smith Barney,
Citibank, Citigroup Asset Management, and the Global Relationship Bank.
Alternative assets under management are approximately $75.5 billion (as of
November 30, 2003). Citigroup Alternative Investments' 550 employees operate
globally out of offices in New York, London, Geneva, Hong Kong, Tokyo and Mexico
City.

Additional information may be found at: www.citigroupai.com.


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