Strategic Investment

Medical Property Investment Fd Ltd
02 August 2004


Embargoed for release at 7.00am Monday 2nd August

Enquiries:       Richard Burrell/Peter Dickson                Tel: [phone]
                 The Medical Property Fund                    www.mpif.net
                 Chris Steele/Tarquin Edwards                 Tel: [phone]
                 Holborn Public Relations





              The Medical Property Investment Fund Limited ('MPF')
   The fast growing long term owner and manager of primary care property assets

            £31m strategic investment in BHE Holdings Limited ('BHE')


The Medical Property Fund, which was launched on 20th November 2003 to become
the leading long term owner and manager of primary care property assets,
announces today that it has successfully completed a £31m strategic investment
in BHE, which represents a significant commitment to a number of primary care
development projects as well as a number of LIFT ('Local Improvement Finance
Trust') projects - part of the Government's aim to procure investment in primary
care and community-based facilities and services.


The Medical Property Fund will acquire a 70% stake in BHE in exchange for £2.2m
in cash and £2.5m in new MPF ordinary shares.  In addition, MPF has agreed to
provide at least £19.2m of funding to purchase BHE's existing properties and
fund current developments which includes one of the UK's largest primary care
centres being developed at Bonnyrigg in Scotland. In addition, MPF intends to
provide further development finance (currently in excess of £7m) for BHE's
forward pipeline of primary care developments.


BHE is a specialist primary care development company with experience of
facilitating the development and management of primary care centres as well as
hospital main entrance retail developments and related regeneration projects.
For the year ended 31st December 2003, BHE had audited net liabilities of
£1.378m and suffered a loss of £970,000 reflecting the extent of LIFT bid costs
incurred during the period.


BHE's LIFT interests are held through the 'gb consortium' group of companies,
which is the contracted developer and long term investor on two LIFT projects in
Liverpool & Sefton and in Barnet Enfield & Haringey as well as the chosen
preferred bidder on the Coventry LIFT.  The gb consortium has a 60% interest in
each LIFT project and BHE has a 40% shareholding in gb consortium (45% in
respect of Coventry).  The gross development value within the three LIFT
projects amounts to circa £200m over the next 5-7 years.


The BHE management team will retain a 30% stake in BHE and BHE will continue to
operate as a standalone company supported by the financial resources of MPF.  It
is the intention of MPF to provide further investment to BHE in order to roll
out additional development schemes in partnership with primary care
organisations and other related healthcare operators.  As part of the
transaction, BHE will transfer to MPF 100% ownership of all of its non-LIFT
property developments, whilst remaining as the project manager on each of these
developments.  At the same time, MPF will transfer to BHE its equity interest in
the preferred bidding company for the new Dudley LIFT.


Richard Burrell, Chairman of the Medical Property Fund Investment Committee
said:


'This marks a further strategic investment by the Medical Property Fund in the
renewal of the primary care estate which is suffering from lack of capacity and
under investment.  We believe that the combination of BHE's development
expertise and MPF's financial muscle will make a significant contribution to the
regeneration of primary care services across the UK.'



Robin Pesskin, Chairman of BHE commented:


'This opportunity represents the right deal at the right time.  BHE will now be
in a position to capitalise on its excellent track record in a booming and
dynamic healthcare market place. MPF offers tremendous credibility and security
and we feel that its investment in BHE will enable us to grow our presence
across the sector.'


The Medical Property Fund will announce Interim Results during the week
commencing 13th September 2004.





Ends



Notes to Editors



MPF

The Medical Property Fund specialises in providing investment and financial
resources for the acquisition, upgrade and development of primary health care
premises.


The Fund was established in November 2003 to be the leading long term owner and
manager of primary care properties in the UK and is a fully quoted support
services company listed on the London Stock Exchange. It has funds in excess of
£400m to be invested in primary care properties by 2006. This financial strength
brings a major source of capital to the sector.


The Medical Property Fund is led by Richard Burrell and Peter Dickson and has an
integrated team of property, GP and health care professionals who have an
in-depth understanding of the needs of primary health care delivery in the UK
and the efficient development and management of premises.




LIFT ('Local Improvement Finance Trust')

The NHS Plan outlined NHS LIFT as a vehicle to invest money into primary care
premises throughout the country to help reduce waiting times for GPs. LIFT will
also provide integrated primary care premises which can provide a range of
primary care services from one site.

John Hutton, Health Minister said on 29th June, 2004:
'The new centres will provide some of the most modern and up-to date facilities
anywhere in the country.  LIFT schemes bring together all the major players in
the local health economy - PCTs, Local Authorities, GPs, other health
professionals and the private sector.  Nine in 10 NHS patients get their
treatment in primary care which is why it's important that treatment takes place
in the most modern facilities the NHS can provide. This is what LIFT can achieve
- modernising primary care facilities throughout the country.'


                      This information is provided by RNS
            The company news service from the London Stock Exchange