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TIDMWNER

RNS Number : 5874M

Warner Estate Holdings PLC

28 August 2013

Warner Estate Holdings PLC

("Warner Estate" or the "Group" or the "Company")

Intention to appoint administrators and suspension from trading

For some time the Company has been reliant on the support of its lenders and other stakeholders particularly as the amount of cash held by the Company has been low and the headroom marginal. This situation has been announced on numerous occasions, including on 30 July 2013 and most recently on 16 August 2013.

Last night, Aviva Investors, in its capacity as operator of Ashtenne Industrial Fund ("AIF"), served a notice on the Company stating that in the future it would revert to paying the Group's asset management fee quarterly in arrears in strict compliance with the asset management agreement rather than monthly as requested by the Group. The withdrawal of this support has significant implications for the Group's cash flow headroom particularly given that this asset management agreement accounts for over 90% of the Group's current revenue. The Board having considered those implications has resolved to appoint administrators from CCW Recovery Solutions, over the Company's business as there no longer remains a reasonable prospect that the Company can avoid insolvent liquidation and the procedure of administration would be in the best interests of creditors as a whole.

Consequently, the Company has written to the Financial Conduct Authority to request the listing of the securities of the Company be suspended from trading with effect from 7.30 a.m. today.

It is understood that following the appointment of administrators AIF will terminate the asset management agreement with the Group and enter into a contract with Hansteen Holdings PLC ("Hansteen") for it to provide those asset management services. Following the termination of the asset management agreement and the anticipated cancellation of listing it is expected that the administrators will effect the sale of the Group's asset management business to Hansteen and, upon the guidance of the administrators the Group will effect the sale of its 5.3% equity stake in AIF to Hansteen. Such action thereby realising value for the lenders holding security over those assets. As a result of the termination of the asset management agreement and the appointment of Hansteen as the AIF asset manager all 95 employees of the Group will automatically transfer to Hansteen on the same terms and conditions as their employment by the Group, as required under the Transfer of Undertakings (Protection of Employment) Regulations 2006 ("TUPE").

These transactions are part of a larger transaction which is being implemented for the benefit of AIF, through its operator Aviva Investors. Aviva Investors has secured the support of the Company's lenders for the implementation of this transaction.

Chairman, Philip Warner stated: "We have worked closely and consensually with our lenders and all our key stakeholders over the last number of years since the 2008 financial crisis to realise sufficient value for them whilst preserving the independent viability of the core asset management business. It is therefore with considerable regret that the appointment of administrators means that any potential value for our long standing and supportive shareholders has been finally extinguished."

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

Numis Securities Limited

Heraclis Economides

Jamie Lillywhite

Tel: 020 7260 1000.

Date: 28 August 2013

-ends-

This information is provided by RNS

The company news service from the London Stock Exchange

END

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