RNS Number:9096Q
Pillar Property PLC
15 October 2003


15 October 2003


PILLAR ACQUIRES TWO EUROPEAN RETAIL PARKS FOR #42M


Pillar Property PLC ("Pillar") announced today that it has contracted to acquire
two retail parks in mainland Europe for a total consideration of Euro59m (#41.8m).
The Navile Retail Park, near Bologna in Italy is to be acquired for Euro44m
(#31.2m) and a 50% stake in the Sintra Retail Park, Lisbon in Portugal for Euro15m
(#10.6m).


Navile is only the second purpose built retail park in Italy and has the
equivalent of Open A1 consent. It comprises 13,240 m2 (142,500 sq ft), located
off the Bologna Ring Road north west of the City centre. The park is currently
under development by Italian developers Galotti SPA and CoopSette. The park,
comprising the 14 retail units being acquired by Pillar will be completed later
this year. The retail units sit adjacent to an anchor store for Castorama, the
French retailer, which opens this week. Already 95% let, tenants include Expert
electricals, Stephane department store and Inverso fashion.


Pillar has also contracted to acquire, conditional on satisfactory refinancing
of the JV, a 50% stake in the Sintra Retail Park, located north west of Lisbon
city centre. The park is a joint venture between Sonae Imobiliaria and Miller
Developments, and Pillar is purchasing Miller's 50% stake. Adjacent to the IC19
motorway, the 16,987 m2 (182,800 sq ft) retail park opened to the public in
November 2000 and has tenants including Mestre Maco, Radio Popular, Divani and
Divani and McDonalds, as well as 650 car parking spaces.


Both these acquisitions will form part of a portfolio to be contributed to the
Pillar Retail Europark Fund ("PREF") when it is established early next year.


Humphrey Price, Group Finance Director of Pillar commented:


"We are delighted to have secured another two prime retail parks in continental
Europe, following our first acquisition at Nassica, near Madrid, earlier in the
year.


"With Pillar's experience in the UK, and working closely with leading retailers
and developers across Europe, we are confident of achieving strong performance
growth for our European assets in markets which are relatively immature compared
to the UK retail property sector.


"Europe has significant opportunities and is a largely untapped market which is
fast evolving in retail terms. We continue to investigate further acquisition
targets in Spain, Italy, France and other countries across Europe."


Cushman & Wakefield acted for Miller Developments. CB Richard Ellis acted for
Pillar on both transactions.


                                      END


Enquiries:

Humphrey Price                                  Tel: 020 7915 8000
Pillar Property PLC

Charlotte Stone/Neil Bennett                    Tel: 020 7554 1400
Gavin Anderson & Company

Simon Hillcox                                   Tel: 07836 204357
Doric Properties


For further information about Pillar Property, please visit the website at
www.pillarproperty.com


Notes to Editors


Pillar is the UK's largest retail park operator, with 4.8 million sq.ft. on 24
retail parks under management.


The 530,000sq ft (49,000 sq m) Nassica Retail & Leisure Park, south of Madrid
was acquired in February 2003 for a consideration of E117m (#77.2m). It contains
a UGC Cine Cite 20-screen multiplex cinema, 45 retail, leisure and restaurant
units and 2,500 parking spaces. Key tenants include PC City, Aki Bricolage
(LeRoy Merlin), Menage del Hogar, Canas y Tapas, Moda en Casa and VIPS. Pillar's
Eurozone acquisitions are undertaken through Pillar Europe, a limited liability
partnership with Doric Properties.


The majority of Pillar's other investments are in the form of units in the
Hercules Unit Trust (of which all the assets are retail parks). At 29 September
2003, Pillar owned 40.29% of Hercules. It also retains a 36% stake in the City
of London Office Unit Trust (of which all assets are City of London office
properties). Pillar is also property adviser to both these trusts which, as at
31 March 2003 had, in aggregate, investment portfolios of approximately #2.47
billion.


Pillar receives management fees on the trust portfolio and performance fees
dependent upon trust investment performance exceeding certain benchmarks. In
addition to its investment in the trusts, Pillar also has a number of sole
investments in other retail parks.



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

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