Re Joint Venture

RNS Number:5392K
Rugby Estates PLC
30 April 2003

30 April 2003



                  Rugby Estates Plc ("Rugby Estates"/"Group")

                RUGBY, BANK OF SCOTLAND AND MERRILL LYNCH LAUNCH
                         LONDON INDUSTRIAL PARTNERSHIP

Rugby Estates announces the formation of London Industrial Partnership Limited
("LIP" / "Company"), a joint venture with Bank of Scotland and Merrill Lynch
Global Principal Investments ("Merrill Lynch") to acquire industrial properties
in the Greater London area.

Rugby Estates will invest up to #2 million in cash for an 11.8% equity interest
in the Company and the balance of the equity will be held equally by Bank of
Scotland and Merrill Lynch.  In addition to these shareholder commitments, Bank
of Scotland has agreed to provide loan facilities of up to #68 million.

Rugby Asset Management Limited ("RAM"), a wholly owned subsidiary of Rugby
Estates, has been appointed as property manager to acquire and manage suitable
properties for LIP.  RAM will receive management fees typical for this type of
transaction, based on LIP's acquisition and disposal programme and rental
income. RAM will also receive a performance fee should shareholder returns
exceed certain targets over the planned five year life of the joint venture.

On behalf of LIP, RAM will aim to acquire #100 million of industrial properties
within the M25 area over the next two years, with a particular focus on single
units, estates and portfolios in lot sizes of over #4 million.  While the
intention is to ensure that the majority of properties are income producing, RAM
will also consider development and short lease situations which present greater
opportunities to add value through intensive management.

Commenting, Andrew Wilson, Rugby Estates' Chief Executive, said:

"The formation of LIP underlines our commitment to co-invest alongside strong
partners in a structure where we can use our tactical property skills and asset
management ability to manufacture future value.

"We believe the Greater London industrial property market will provide a
rewarding investment environment and another exciting forum for building our
asset management activities over the next few years."

Douglas Middleton, Director of Joint Ventures, Bank of Scotland, said:

"The Joint Ventures team aims to build asset backed businesses with partners who
have a proven track record in adding value and strong growth potential.  We are
delighted to be joining the Rugby team in this new venture.  We believe their
proven ability in investment and asset management along with financial expertise
from Merrill Lynch and ourselves will deliver a key player in the sector."

Tim Minns, Director, Global Principal Investments, Merrill Lynch said:

"The sector, location, anticipated returns and the quality of Rugby and Bank of
Scotland as our partners makes the Partnership and its initiative compelling for
us."


                                     -ENDS-


For further information:

Rugby Estates Plc
020 7632 2200
Andrew Wilson

Bank of Scotland
0131 243 7016
Lindsay Carruthers

Merrill Lynch
020 7995 4437
Richard Creswell

Financial Dynamics
020 7831 3113
Stephanie Highett/Dido Laurimore

Notes to editors:

Bank of Scotland

Bank of Scotland Corporate Banking is a part of HBOS plc and has a reputation
for excellence in the provision of corporate finance, delivering innovative
funding solutions across a range of markets.

Bank of Scotland provides funding to more Management Buy-Outs than any other
bank in both the UK and Europe and is now recognised as the top arranger for PFI
/PPP deals.

With experience across many areas of corporate finance, including specialist
teams covering Joint Ventures, Integrated Finance, Structured Property Finance,
Infrastructure Finance and Housing Finance, Bank of Scotland can draw on an
expert pool of professionals with proven track records.

Corporate Banking employs over 1,400 employees across 34 locations worldwide.
Total lending at the end of 2002 stood at #44.1 billion

To find out more visit www.bankofscotland.co.uk/corporate

Merrill Lynch

Merrill Lynch is one of the world's leading financial management and advisory
companies with offices in 36 countries and private client assets of
approximately $1.1 trillion.  As an investment bank, it is a leading global
underwriter of debt and equity securities and strategic advisor to corporations,
governments, institutions, and individuals worldwide.  Through Merrill Lynch
Investment Managers, the company is one of the world's largest managers of
financial assets, with assets under management of $442 billion.

For more information on Merrill Lynch, please visit www.ml.com.


                      This information is provided by RNS
            The company news service from the London Stock Exchange
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