Re Limited Partnership

Quintain Estates & Development PLC
15 April 2002

15 April 2002



         Quintain Estates and Development PLC ('Quintain' / 'Company')


          QUINTAIN, HERMES AND BANK OF SCOTLAND FORM PUB JOINT VENTURE


The board of Quintain is pleased to announce that it has today established a
limited partnership with Hermes Property Asset Management Limited (Hermes) and
Bank of Scotland Corporate Banking. The respective holdings will be 12.9%, 74.7%
and 12.4% with Bank of Scotland providing the senior debt. Contracts have
simultaneously been completed for the sale of a portfolio of 37 of Quintain's
public houses to the limited partnership, Quart (the 'Partnership'). Hermes is
acting on behalf of British Telecommunications Pension Scheme and Consignia
Pension Plan.



The total consideration for the portfolio is £42.7 million, of which £2.15
million is deferred and will be paid in five years time with a coupon of 7%.
Prior to the sale of these assets, Quintain received an annual income of £3.2
million from the portfolio. This disposal will provide funds for additions to
Quintain's investment portfolio.



Quintain will act as the asset manager of the Partnership and with its stake
will receive a share of the Partnership's returns and income in the form of
management and performance fees.  An additional tranche of public houses still
held within Quintain's portfolio, up to a total value of approximately £5
million, will be transferred in to the Partnership at a future date. There will
also be some £6 million available immediately to acquire new stock.



Quintain believes that there is considerable potential in the creation of
investment vehicles offering institutional investors access to highly
specialised portfolios of assets managed by the Company's dedicated management
teams.  This approach has already been demonstrated by the creation and ongoing
success of Quercus, its nursing home joint venture with CGNU, in which Quintain
retains a stake as well as being responsible for the day-to-day asset
management.



Commenting, Adrian Wyatt, Quintain's Deputy Chairman, said:



'This new venture with Hermes and Bank of Scotland is the second specialist fund
we have created and we are delighted to be working in partnership with such
eminent institutions. This clearly demonstrates the growing recognition by major
UK institutions that focused investment vehicles managed by professionals with
specialist knowledge of specific operational areas, combined with traditional
property management skills, can deliver significantly enhanced returns.'



Commenting, Richard Harrold, Chairman of Hermes Property Asset Management, said:



'This is an excellent venture which gives our Funds exposure to another sector
which is evolving. The combination of gearing, experienced, incentivised
management and good growth prospects promises strong returns.'



Bank of Scotland is a major player in similar equity participations with a
portfolio of over £4 billion of investments.  Ian Souza, Director of Corporate
Banking, Bank of Scotland, added:



'Bank of Scotland is pleased to join together with Hermes and our long
established client, Quintain, in this transaction.  We have a good track record
in supporting the pub sector and are excited by this unique opportunity.  We
firmly believe the management skills of Quintain can add significant value to a
specialised portfolio'





For further information, please contact:



Quintain Estates and Development

020 7495 8968

Rebecca Worthington



Hermes Property Asset Management

020 7702 0888

Richard Harrold



Bank of Scotland

0131 243 5572

Mark Elliot



Financial Dynamics (representing Quintain)

020 7831 3113

Stephanie Highett/Dido Laurimore



Redwood P.R. (representing Hermes)

020 7494 0303

Debbie Cracknell



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