Interim Results

Medical Property Investment Fd Ltd
14 September 2004


                  The Medical Property Investment Fund Limited
           Unaudited Interim Report for the period ended 30 June 2004


The Medical Property Investment Fund is a support services company listed on the
London Stock Exchange. The Fund was launched in November 2003 and has financial
resources of circa £400m to invest in primary care.


•       30 sites acquired (a further seven in solicitors' hands)

•       Over £100m of capital committed
        (as at 01 September 2004)

•       Growing pipeline of acquisitions and developments

•       First Interim Operating Profit of £1.5m

•       First Interim Dividend 1.33p per Ordinary Share1


 1 Ex -dividend date 22 September 2004, Record date 24 September 2004, Payment
                              date 15 October 2004


This Interim Report is published in respect of the period from incorporation of
the business on 07 October 2003 to 30 June 2004. The Ordinary Shares were
admitted to the Official List of the London Stock Exchange on 21 November 2003.


Results

I am pleased to report an extremely satisfactory start for the Company during
its first seven months of operations since flotation on the London Stock
Exchange.

As at 30 June 2004, the Company had acquired 28 properties and a further two
properties had been acquired under conditional contract. In addition, a further
seven properties were in solicitors' hands of which three have exchanged
subsequent to the period end.

Following the recent announcement of the Company's investment in the specialist
primary care developer, British Health Enterprise, the total capital committed
by the Company is now in excess of £100m with an estimated average net initial
yield on completion of circa 7%.

During the period, total income of £3.9m produced an operating profit of £1.5m
which is in line with budget. The Company has adopted a conservative accounting
policy by absorbing 100% of property acquisition expenses from the date of
purchase. The consequential net loss for the period was £719,018.

An interim dividend of 1.33p per Ordinary Share has been declared to
shareholders on the register as at 24 September 2004 (ex-dividend date 22
September 2004). In the absence of unforeseen circumstances and in line with the
Prospectus, the Board intends to pay a total dividend of 4p per Ordinary Share
in respect of the period to 31 December 2004.

As at 30 June 2004 the Company had net assets of £133.3m and no bank borrowings.
  The net asset value per Ordinary Share as at 30 June 2004 was 95.2p compared
to 94.0p as at 31 March 2004.


Operating Review

During the period under review, the principal focus has been on locating
suitable acquisition opportunities. A regional infrastructure has been
established to facilitate links with Strategic Health Authorities, Primary Care
Trusts ('PCTs'), GP practices and local developers. Management activity has also
been directed towards developing a market presence and promoting an awareness of
the aims and objectives of The Medical Property Investment Fund.  Deal sourcing
to date has comprised investment purchases of completed rent producing
properties, forward purchase commitments and various development projects.

The acquisition of two significant investment portfolios has been considered
during the period. In each case we concluded that the portfolio premium sought
by the respective vendors would not deliver long term shareholder value. Further
portfolio opportunities will be considered provided they offer growth potential
and investment returns in line with the Company's strategy.

Since the period end, the Company has announced the acquisition of a 70%
interest in the share capital of British Health Enterprise ('BHE').  This
company is a specialist developer of primary care centres and hospital main
entrance 'retail malls'. It is also actively involved with developments through
three LIFT1 companies, two of which have reached financial closure. The purchase
consideration and capital commitments on completion total £31m and include
existing assets, LIFT consortium investments and a development pipeline in
non-LIFT areas.  This investment also brings to the Group the specialist
development and LIFT expertise of the BHE management team. We believe this union
and the opportunities embedded within BHE's existing development programme will
deliver high quality investment purchases with good long term income growth
prospects.


1 Local Improvement Finance Trusts are part of the Government's aim to procure
investment in primary care and community-based facilities and services.


Industry Trends

The benefits of practicing from modern premises are clearly recognised by health
professionals across the sector and the demand for new facilities continues to
grow. Government policy continues to support the renewal of this primary care
infrastructure and significant procurement activity is taking place across the
private development sector as well as within LIFT designated areas.

Historically many developments in the sector have relied on 100% bank finance as
a prerequisite to undertaking new projects. As a result, new developments are
dependent on being fully pre-let in order to satisfy banking requirements before
commencement of construction works on site. This process leads to developments
with a limited opportunity for future expansion and extends the pre-development
timetable causing frustration to both GP practices and PCTs.

GPs themselves are taking a much greater interest in the premises from which
they practice as modern facilities aid the delivery of clinical services
required under the new GMS contract with the NHS. They want larger buildings to
accommodate a wider range of services for patients and recognise the importance
of good premises when recruiting new Doctors. However, the appetite for
ownership of premises has reduced as working practices in the medical profession
have become more diverse and GPs are tending to prefer greater career
flexibility in contrast to a long term, full time partnership position. This
trend is increasing the requirements for external equity investment sympathetic
to the needs of the modern medical practice.


Strategy

The cornerstones of the Company's strategy are in line with the Prospectus. The
investment market continues to be very buoyant with yields on secondary
locations and smaller lot sizes particularly keen. We have adopted a highly
selective approach in this segment of the market whilst we have actively built
up our expertise to participate in the larger third party development
opportunities as well as our various LIFT interests.

The Medical Property Investment Fund is ideally placed to address industry
trends, by offering GPs and PCTs a genuine alternative to bank financed
developments and as a natural partner for the long term ownership and ongoing
investment in primary care premises. We are prepared to invest in unlet space
and build schemes larger than initial requirements. This makes us especially
well positioned to invest in the bigger projects or the 'one stop shops' where
there is an opportunity to attract complementary medical providers and services
alongside a traditional GP practice.

Looking ahead, we believe that the Company's active involvement in the
development process will be a key driver of shareholder value and, as a result,
more resources are being allocated to this part of the business.


Outlook

We are pleased with the development of the Company since flotation last
November.  In the coming months, we will be focusing on expanding our presence
in the market place and seeking ways to improve the effective procurement of new
primary health care centres.

Earlier this year the Government announced changes to the way in which it
revenue funds new developments through 'growth monies' and identifies priority
projects. This has caused some delay in new schemes getting underway and the
creation of completed investment stock. Despite this disruption, opportunities
for the Company are continuing to emerge from a number of different sources.
These include the opportunity to partner with PCTs and GPs in facilitating the
move to modern sites sourced through our own development team; working with
house builders and third party developers in the forward funding of new schemes;
and also the selective purchasing of existing investments from GPs and other
investors.

The Company is involved in a number of exploratory projects with its existing
asset base including strategic tie-ups with other complementary operators of
primary care assets (e.g. pharmacies and related health providers).

We are on track to deliver the asset-backed income growth identified in the
Prospectus and over the next 12 months we will continue to focus on building the
Company's portfolio of properties and developments.


Richard Burrell
Berrington Fund Management Limited

13 September 2004



Portfolio Listings as at 01 September 2004

South East and East Anglia:
The Graham Practice Medical Centre, London E12
Isidore Medical Centre, London SE15
The Keat's Group Practice, London NW3
Kensington Park Health Centre, London W14
Orchards Health Centre, Barking, Essex
Mill Hill Surgery, London W3
Queensbridge Group Practice, London E8
Rushgreen Medical Centre, Romford, Essex
Wideway Medical Centre, Mitcham, Surrey

South West and South Wales:
Priory Road Health Clinic, Swindon, Wiltshire*

Midlands:
Heartlands Hospital Retail Mall, Birmingham*
Long Lane Surgery, Coalville, Leicester
Thomas Walker Medical Centre, Peterborough

North West and North Wales:
Allt Goch Medical Centre, Flint, Flintshire
Ashfields Primary Care Centre, Sandbach, Cheshire
Denton Medical Practice, Denton, Manchester
Earnswood Medical Centre, Crewe, Cheshire
Elizabeth Street Surgery, Blackpool, Lancashire
Green Bank Surgery, Warrington, Cheshire
Ropewalks One, Liverpool*

North East, Yorks and Scotland
Ashby Turn Primary Care Centre, Scunthorpe, North Lincolnshire
Beechwood Medical Centre, Ovenden, Halifax, West Yorkshire
Bonnyrigg Medical Centre, Bonnyrigg, West Lothian*
Craven Road Medical Centre, Leeds, West Yorkshire
Outwood Park Medical Centre, Outwood, Wakefield, West Yorkshire
Major Oak Medical Practice, Edwinstowe, Nottinghamshire
Middlestown Medical Centre, Middlestown, Wakefield, West Yorkshire
Northgate Surgery, Pontefract, West Yorkshire
The Rossington Practice, Rossington, Doncaster, South Yorkshire
Victoria Medical Centre, Barnsley, South Yorkshire
Waverley Medical Centre, Stranraer, Scotland
The Willows Medical Centre, Queensbury, Bradford, West Yorkshire
York District General Hospital Retail Mall, York, Yorkshire

* Currently under construction


Unaudited Consolidated Statement of Operations

For the period from 07 October 2003 to 30 June 2004
                                                                                                     07/10/2003
                                                                                                             to
                                                                                                     30/06/2004
                                                                                                      Unaudited
                                                                          Notes                               £
Income

Rent receivable                                                                                       1,617,978
Bank & other interest                                                                                 2,238,835

Total Income                                                                3                         3,856,813


Expenses

Interest payable and similar charges                                                                      4,970
Investment Manager's fees                                                                             1,607,950
Legal and professional fees                                                                             120,491
Property management expenses                                                                             55,987
Audit, tax and accountancy fees                                                                          60,060
Administration fee                                                                                       70,251
Directors' fees                                                                                         143,287
Insurance                                                                                                22,742
Other expenses                                                                                          237,652
Bank charges                                                                                              2,395


Total Expenses                                                                                        2,325,785


Operating Profit                                                            3                         1,531,028

Acquisition costs net of revaluation surpluses                                                      (2,250,046)


Net Loss for the Period                                                                               (719,018)


Loss transferred to reserves                                                                          (719,018)

Basic and Diluted Loss per Ordinary Share                                   4                           (0.50p)




Unaudited Consolidated Balance Sheet
As at 30 June 2004

                                                                                                  30/06/2004
                                                                                                   Unaudited
                                                                      Notes                                £
Non-current Assets
     Investment properties                                              5                         47,355,092

                                                                                                  47,355,092

Current Assets
     Cash and cash equivalents                                                                    85,308,824
     Debtors                                                                                       1,776,065

                                                                                                  87,084,889

Total Assets                                                                                     134,439,981

Current Liabilities
     Creditors                                                                                     1,179,162

Total Liabilities                                                                                  1,179,162

Net Assets                                                                                       133,260,819

Capital and
Reserves
     Share capital                                                      6                         14,000,000
     Share premium                                                                               119,979,837
     Reserves                                                                                      (719,018)

Issued capital and reserves                                                                      133,260,819

Net Asset Value per Ordinary Share                                                                    95.20p

The unaudited financial statements on pages 7 to 11 were approved at a meeting
of the Board of Directors held on 13 September 2004 and signed on its behalf by:

Dr Mark Jackson, Chairman                                      )
                                                               )
Graham Chase, Director                                         )



Unaudited Company Balance Sheet
As at 30 June 2004

                                                                                                 30/06/2004
                                                                                                  Unaudited
                                                                                                          £
Non-current Assets
      Investment in subsidiary companies                                                          5,484,824
      Loans to subsidiary companies                                                              42,925,749
                                                                                                 48,410,573

Current Assets
      Cash and cash equivalents                                                                  84,668,166
      Debtors                                                                                       526,596
                                                                                                 85,194,762

Total Assets                                                                                    133,605,335

Current Liabilities
      Creditors                                                                                     344,516

Total Liabilities                                                                                   344,516

Net Assets                                                                                      133,260,819

Represented by:

Capital and Reserves
      Share capital                                                                              14,000,000
      Share premium                                                                             119,979,837
      Reserves                                                                                    (719,018)

Issued Capital and Reserves                                                                     133,260,819

The unaudited financial statements on pages 7 to 11 were approved at a meeting
of the Board of Directors held on 13 September 2004 and signed on its behalf by:

Dr Mark Jackson, Chairman                                          )
                                                                   )
Graham Chase, Director                                             )



Unaudited Consolidated Cash Flow Statement
For the period from 07 October 2003 to June 2004

                                                                                                     07/10/2003
                                                                                                             to
                                                                                                     30/06/2004
                                                                                                      Unaudited
                                                                                                              £
Operating Activities
Rent received                                                                                         1,464,845
Bank and other interest received                                                                      2,036,044
Expenses paid                                                                                       (2,567,294)
Interest paid and similar charges                                                                       (4,970)

Net Cash Inflow from Operating Activities                                                               928,625

Investing Activities
Purchase of investment properties                                                                  (49,599,638)

Net Cash Outflow from Investing Activities                                                         (49,599,638)

Financing Activities
Issue of Ordinary Shares                                                                            140,000,000
Issue costs paid on issuance of Ordinary Shares                                                     (6,020,163)

Net Cash Inflow from Financing Activities                                                           133,979,837

Increase in Cash and Cash Equivalents                                                                85,308,824

Cash and cash equivalents at 07 October 2003                                                                  -

Cash and Cash Equivalents at 30 June 2004                                                            85,308,824


1.   The Company was incorporated on 07 October 2003 and commenced trading
     following Admission of its shares to the Official List of the London Stock
     Exchange on 21 November 2003.

2.   The results for the period, which are not statutory accounts and which have 
     not been audited, have been prepared on a going concern basis under the
     historical cost convention, except for the measurement at fair value of
     investment properties.

3.   All turnover and operating profit arose from continuing operations.

4.   Basic and diluted loss per Ordinary Share is based on the net loss for
     the period and on 140 million Ordinary Shares in issue.

5.   The figure for investment properties at 30 June 2004 is based on valuations 
     determined by FPD Savills.

6.   Share Capital

Consolidated and Company Authorised                                                                   £

200,000,000 Ordinary Shares of 10p each                                                      20,000,000
20,000,000 Preference Shares of 10p each                                                      2,000,000
                                                                                             22,000,000

                                                                              Number of           Share
                                                                                 Shares         Capital
                                                                                                      £
Ordinary Shares of 10p each issued and fully paid

Balance issued during the period and at 30 June 2004                        140,000,000      14,000,000


7.   On 30 July 2004 the Company acquired 70% of the share capital of BHE
     Holdings Ltd, and 100% of the share capital of BHE (Bonnyrigg) Ltd and BHE
     (Heartlands) Ltd, for a consideration of £4m plus 2,403,846 Ordinary Shares 
     in the Company.

8.   On 13 September 2004 a dividend of 1.33p per Ordinary Share was declared to 
     shareholders on the register at 24 September 2004, giving a total amount of 
     £1,862,000.

9.   A copy of this statement has been sent to every shareholder. Further copies 
     are available from the Company's registered office or from the website at
     www.mpif.net.

10.  The interim financial statements were approved at a meeting of the Board
     of Directors held on 13 September 2004.


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