Warburg - Henderson KAG launches Pan-European fund

The property fund management joint venture between Henderson Global Investors and M.M.Warburg & CO KGaA, Warburg - Henderson Kapitalanlagegesellschaft für Immobilien mbH (KAG), has announced the launch of its third fund, Pan-Europa Fonds Nr.1.

The Fund's strategy is to invest primarily in core office and retail properties and will initially focus on the key European investment markets namely - France, Germany, Italy and the UK. Once an initial portfolio is established, further opportunities in the Benelux and Iberia will be pursued. The assets will be sourced and managed in Germany by M.M.Warburg's property asset management subsidiary HIH Hamburgische Immobilien Handlung GmbH and in the rest of Europe by Henderson.

The Fund's lead investors are a combination of leading German and Austrian institutions who have made an initial equity commitment of EUR 150 million. The Fund is expected to grow to around EUR 250 million in equity commitments. The fund will be geared to a maximum of 50% loan to value, so that the total property portfolio is expected to be between EUR 300 million and EUR 500 million.

Michael Howard, the manager of the Fund said, “Our investors are seeking stable returns from property as an antidote to volatility in the equity markets. Quality assets providing secure, long-term income are at the top of our shopping list."

Warburg - Henderson provides a unique combination of German and international fund management expertise and is an ideal vehicle for international institutions seeking exposure to Pan-European property markets. This core Pan-European product adds to the growing stable of funds being managed by Warburg - Henderson and follows the launch at the end of 2002 of two country funds aimed at delivering opportunistic and core returns in the German and Austrian markets respectively.

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Notes to Editors

Henderson Global Investors is the investment management subsidiary of AMP, the international financial services group. It manages £98 billion as at 30 June 2002 in assets and employs around 1,500 people around the world.

Property is a key component of Henderson's asset management business. It is a worldwide capability with growing operations in the UK, Continental Europe, North America, Australia, New Zealand and Singapore and has a total of £12.1 billion under management (as at 30 June 2002). www.henderson.com

The KAG is registered under German law and holds investment company status.