Interim Management Statement

ISIS Property Trust 2 Limited
16 April 2008


ISIS Property Trust 2 Limited


Interim Management Statement


For the Three-Month Period from 1 January 2008 to 31 March 2008


Investment Objective


The investment objective is to provide shareholders with an attractive level of
income together with the potential for capital and income growth from investing
in a diversified UK commercial property portfolio.


Performance Summary

                            For the three For the nine
                             month period month period
                           ended 31 March     ended 31
                                     2008   March 2008

Total Return *

Net asset value per share           -6.3%       -20.2%
Ordinary share price                +9.4%       -20.2%
Investment Property
Databank UK Monthly
Property Index                      -3.4%       -12.5%
FTSE All-Share Index                -9.9%       -11.8%

                                   As at        As at

                                31 March  31 December

Capital Values - 3 months           2008         2007          % Change

Net asset value per share         122.4p       132.5p              -7.6
Ordinary share price               95.0p        88.5p              +7.3
FTSE All-Share Index             2,927.1      3,286.7             -10.9
Discount to net asset              22.4%        33.2%
value
Net gearing #                      29.8%        28.1%



                                   As at        As at

                                31 March      30 June

Capital Values - 9 months           2008         2007          % Change

Net asset value per share         122.4p       159.6p             -23.3
Ordinary share price               95.0p       125.5p             -24.3
FTSE All-Share Index             2,927.1      3,404.1             -14.0
Discount to net asset              22.4%        21.4%
value
Net gearing #                      29.8%        19.0%




Sources: F&C Investment Business Limited, Investment Property Databank ('IPD'),
Datastream.


* - All total returns are based on net dividends re-invested

# - Net gearing: Bank debt (less cash) divided by total assets less current
liabilities







Dividends


The second interim dividend for the year ended 30 June 2008 of 1.8 pence per
share was paid on 11 April 2008. In the absence of unforeseen circumstances it
is the intention of the Board to maintain quarterly dividends at this rate,
giving a total dividend of 7.2 pence per share for the 2007/8 financial year.


Review for the Period


In another difficult quarter for commercial property, the Company's net asset
value total return was -6.3%. The share price total return was 9.4%, the share
price having recovered to 95.0 pence per share as at 31 March 2008 from 88.0
pence per share as at 31 December 2007. The discount narrowed during the period
from 33.2% at 31 December 2007 to 22.4% at the quarter-end.


The property market has been challenging over the past few months, characterised
by falling capital values, negative total returns and limited investment
activity. This in part reflects the reduced availability of credit but it is
also a response to earlier unsustainably low yield levels and a narrowing of the
differential between prime and secondary stock. Prices were marked down sharply
and swiftly late in 2007 to reflect changed market conditions and sentiment.
More recent downgrades have been less severe and property yields have now moved
above the risk-free rate and the borrowing rate.


Although property has now become more fairly priced and may benefit from the
cuts in interest rates, market sentiment remains cautious and risk-averse. There
are downside risks if the credit crunch is prolonged or intensifies or if
economic growth slows markedly to affect the hitherto relatively resilient
occupational market. Investors are favouring prime, well-let investments in
areas of restricted supply which can deliver a steady income.


Over the quarter ending 31 March 2008, the value of the Company's property
portfolio fell by 5.0% which, combined with an income return of 1.5%, produced a
total return for the period of -3.6%. This compares with the IPD Monthly Capital
Value Index which fell by 4.7% over the quarter and, combined with income,
reported a total return of -3.4%. For the first nine months of the current
financial year the fall in capital value equates to 15.5% which, together with
the income return of 4.1%, gave a total return for the period of -11.9%. The IPD
total return for the same period was -12.5%.


Within the individual property sectors, movements across the sectors were
similar, with the largest sector fall during the quarter in retail warehouse
(consisting of the car showroom complex at Clifton Moor Gate, York) which saw a
fall of 5.3%. The office sector performed better than the portfolio average and
delivered a capital return of -4.7%, helped in part by the completion of the
rent review at No1, Royal Standard Place, Nottingham.


The property at Hemel Gateway, Hemel Hempstead increased in value by 2.4% over
the quarter to £10.1m. The increase reflected the fact that all the costs for
rebuilding the property, following the Buncefield Oil Storage explosion, were
fully met by insurance.


The largest drop in value was from Southampton International Park, Eastleigh
which fell by £1.4m (11.0%) to reflect an initial yield of 7.1%. The property at
48/49 St James Street London SW1 fell in value by £1.3m (5.9%). Although the
estimated rental value of this property increased, following evidence of new
lettings, this was not enough to offset the further outward movement in yield as
a result of market conditions.


During the quarter the income stream further improved. A number of rent reviews
and lease renewals were concluded. In particular, the rent review on No1, Royal
Standard Place, Nottingham, due on 29 November 2006, was finally agreed at
£402,000pa, an uplift of £28,625pa (7.6%). The rent review due on 25 December
2007 at 7-8 High Street Winchester was agreed at £338,750pa giving an uplift of
£57,750pa (20.5%).


The Company's portfolio continues to enjoy a secure and stable income stream.
The void rate within the portfolio was 2.2% at 31 March 2008. This is a result
of lease expiries at Lakeside Road, Colnbrook and at 48/49 St James's Street
London SW1. However, both of these units are now the subject of refurbishment
projects which will enhance the quality of the accommodation and improve rental
and capital values. The current void rate compares favourably with the IPD
average void rate of 9.3% (Source IPD Monthly Index March 2008).





Top Ten Holdings

                                                             31/03/2008

                                                             Percentage
                                                                     of
                                                              portfolio

Property                                          Sector
48-49, St. James's Street, London, SW1            Offices          9.2%

Unit 3663, Echo Park, Banbury                     Industrial       8.9%

Units 1-8, Lakeside Road, Colnbrook               Industrial       7.8%

Mercury House, 1 Dove Wynd, Strathclyde Business  Offices          7.0%
Park

1-2 Lochside Way, Edinburgh Park, Edinburgh       Offices          6.5%

Southampton International Park, Eastleigh         Industrial       5.9%

30/40, The Parade & 47/59A Warwick Street,        Retail           5.6%
Leamington Spa

Hemel Gateway, Boundary Way, Hemel Hempstead      Industrial       5.1%

Clifton Moor Gate, York                           Retail           4.7%
                                                  Warehouse


Swift House, Cosford Lane, Rugby                  Industrial       3.8%

Total                                                             64.5%






Geographical Analysis

                                             31/03/2008       31/12/2007

                                             Percentage       Percentage
                                           of Portfolio     of Portfolio
Location
South East                                         45.8             45.9
Scotland                                           14.8             14.7
West Midlands                                      14.6             14.5
London - West End                                  11.3             11.4
Yorkshire and Humberside                            4.7              4.7
East Midlands                                       2.9              2.8
Eastern                                             2.2              2.2
Rest of London                                      1.6              1.6
South West                                          0.7              0.8
North East                                          0.7              0.7
North West                                          0.7              0.7

Total                                             100.0            100.0






Sector Analysis

                                             31/03/2008       31/12/2007

                                             Percentage       Percentage
                                           of Portfolio     of Portfolio
Sector
Offices                                            30.1             30.1
Retail                                             30.5             30.4
Industrial                                         34.7             34.8
Retail Warehouse                                    4.7              4.7

Total                                             100.0            100.0



The Board is not aware of any significant events or transactions which have
occurred between 31 March 2008 and the date of publication of this statement
which would have a material impact on the financial position of the Company.


Quarterly and Key Information


Further information regarding the Company, including performance since launch
and the most recent annual and interim reports, can be found at the Company's
website www.isispropertytrust2.com, or at www.fandc.com.

For further information please contact:


Ian McBryde/Scott Macrae

F&C Investment Business Limited

Tel: [phone]



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