Acquisition

Medical Property Investment Fd Ltd
07 June 2005


Medical Property Investment Fund Limited

7 June 2005

Medical Property Investment Fund to acquire a portfolio of twelve primary health
care properties

Introduction

The Medical Property Investment Fund Limited (the 'Company') agreed on 6 June
2005 terms to acquire a portfolio of eight investment properties and four
development properties (the 'Apollo Portfolio') from Apollo Medical Partners
Limited for an aggregate consideration of £47,275,000 (the 'Acquisition').

The Directors believe the Apollo Portfolio offers the Company:
     
•    seven purpose built primary care centres (six of which were newly
     developed in the last three years);

•    one multi-let Health Park;

•    four high quality primary care centre developments due to be completed
     between June 2005 and June 2006;

•    geographical spread with properties situated from Eastbourne to
     Aberdeen;

•    income weighted average un-expired lease term of 17 years;
     
•    approximately 90 per cent. of income secured against NHS Trusts or GP
     Practices who receive rent reimbursement from their local Primary Care 
     Trust;

•    reversionary rental potential;

•    three potential pharmacy opportunities;
     
•    development opportunities on at least two sites to create larger prime
     pitch facilities; and

•    un-let space in two of the properties providing accommodation for other
     complementary medical service providers to co-locate alongside the primary 
     care facilities, increasing overall income enhancement potential from those 
     sites.

Commenting on the Acquisition, Richard Burrell, Investment Manager to the
Company, said:

'We have looked at other portfolios that have come to the market over the last
18 months and we believe the Apollo properties represent the best quality
portfolio of primary health care centres that has become available since the
Company was established in November 2003.

It is our mutual intention to strengthen links between the Company and the
Apollo Medical Group, in order to facilitate future development projects and
further income enhancing opportunities on the properties to be acquired as well
as on certain other properties where appropriate.'

Enquiries:    Richard Burrell                              Tel: [phone]
              Berrington Fund Management Limited           www.berringtonfm.com
              David Masters                                Tel: [phone]
              Lansons Communications

Principal terms of the Acquisition

The aggregate purchase consideration payable, in cash, under the relevant
purchase agreements (the 'Property Agreements') is £47,275,000 before associated
costs. The Acquisition is being effected in two stages, an initial acquisition
of four properties for £6.375 million (the 'First Tranche') which is expected to
complete on 10 June 2005 and a second acquisition of eight properties for £40.9
million (the 'Second Tranche'). In view of its size, completion of the Second
Tranche is conditional upon shareholder approval. The consideration for the
Acquisition will be satisfied out of the Company's existing cash resources.

The Company has agreed to guarantee the obligations of MPIF Holdings Limited,
the Company's wholly-owned subsidiary which will acquire the properties, under
the Property Agreements. Total transaction costs including Stamp Duty Land Tax
are estimated to be 5.75 per cent. of the aggregate consideration payable. The
Directors believe that when all of the properties are completed and fully let
the annual rental income will be of the order of £2.9 million which reflects a
net initial yield of 5.8 per cent. The estimated rental value of the properties
is £3.1 million which reflects an equivalent yield of 6.2 per cent.

In agreeing terms with the vendor in relation to the Second Tranche, the Company
has paid a non-refundable deposit of £1,800,000 in cash. Prior to agreeing to
pay this deposit, the Investment Manager and Cenkos Securities Limited consulted
with several of the Company's major shareholders. Whilst the Company did not
seek binding commitments from these shareholders, the Board is confident that,
in the absence of unforeseen circumstances, there will be a majority of
shareholders voting in favour of the Second Tranche.

Information on the Apollo Portfolio

The First Tranche comprises four freehold investment properties, currently
generating £359,500 rental income per annum (£374,500 per annum when fully let).
The Second Tranche comprises four investment properties and four development
properties, currently generating £2,228,315 rental income per annum (£2,487,085
per annum when fully let).  Of the investment properties, two are freehold/
feuhold and two are held on long leases. Three of the development properties are
freehold/feuhold and the fourth development property is part freehold and part
leasehold. All of the leases are on a full repairing and insuring ('FRI') or
modified FRI basis.

Benefits to the Company of the Acquisition

The Directors believe the Acquisition will add significant critical mass to the
Company's investment portfolio, strengthening its presence in a number of
geographical locations and providing the Company with further opportunities to
expand its income from those properties being acquired.

Aside from the individual properties, it is anticipated that the Acquisition
will also provide an opportunity for the Company to enter into a long term
relationship with Apollo Medical Partners Limited. It is the mutual intention of
the Company and Apollo Medical Partners Limited to strengthen links between the
two organisations, facilitating future development projects and further income
enhancing opportunities on the properties being acquired as well as on certain
other properties.

Current Trading and Prospects

As at 15 March 2005, the Company announced that it had invested or committed
(which includes transactions in legal hands) £175 million towards the
acquisition and development of primary health care properties. It is the
intention of the Company to invest or commit an aggregate of at least £400
million by the end of 2006.

The Apollo Portfolio, together with other commitments made since 15 March 2005,
brings the total investments or commitments of the Company to approximately £240
 million which should, the Directors believe, provide the Company with an
overall net initial yield on completion of approximately 6.8 per cent.

The Company is in advanced stages of negotiations regarding the first tranche of
its banking facility. Terms have been agreed in principle with National
Australia Bank for a three year Revolving Credit Facility of £100 million. It is
the Company's intention to re-finance this debt once it has acquired a larger
portfolio of properties. The Company has entered into a long dated interest rate
swap to fix the cost of its debt co-terminous with the average length of its
leases.

Extraordinary General Meeting and Circular

An Extraordinary General Meeting will be convened at which an ordinary
resolution will be proposed to approve the Second Tranche. A circular containing
full details of the Acquisition and other relevant information together with a
notice convening the Extraordinary General Meeting is expected to be despatched
to shareholders shortly.  A further announcement will be made in due course.

Ends

Not for release, distribution or publication in or into the United States of
America, Canada, Australia, Japan, the Republic of Ireland or the Republic of
South Africa or their respective territories and possessions, or in any other
jurisdiction in which its distribution or publication is restricted or
prohibited.

This announcement does not constitute an offer or invitation to subscribe for or
purchase any securities in The Medical Property Investment Fund Limited and
neither this announcement nor anything contained herein shall form the basis of
any contract or commitment whatsoever. Neither this announcement nor any copy
hereof may be distributed in any jurisdiction outside the UK where its
distribution may be restricted by law. Persons who receive this announcement
should make themselves aware of and adhere to any such restrictions. This
announcement has been issued by The Medical Property Investment Fund Limited and
is the sole responsibility of it.


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