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Morley Fund Management has joined forces with Parkridge tolaunch a €425m property fund which will develop and investdirectly in shopping centres in Poland. The Parkridge CentralEuropean Retail Fund, is a 50:50 joint venture that focuses onshopping centres located in provincial Polish cities. Morley FundManagement has committed to invest €340m into the fund onbehalf of Norwich Union Life.

The fund already controls five sites and will initially seek tobuild and develop shopping centres on these totalling an area of1.02 million square feet.

The developments will be in towns of a population of 100,000 ormore with gross lettable areas of between 18,000 sqm and 64,000sqm. They will provide fashion, electrical, supermarket units andmultiplex cinemas. Tenants will include a combination ofinternational and Polish brands and pre-lettings already achievedinclude Media Markt, H & M, Zara, Reserved, Vision Express,Boss, Alma (Supermarket), Multikino, Cinemacity, Promod, Ecco,Adidas & Reebok.

Construction has already started at the first shopping centre inthe southern city of Rybnik and will be open for Christmas2006.

Roger Sporle, fund manager at Morley Fund Management, said:“The Parkridge Central European Retail Fund is the fourthfund focussing on Central Europe that we have launched in the pastyear and our second major fund with the Parkridge team.

“We believe there will be considerable yield compression andrental growth in the Polish market as the retail sector developsand potentially excellent returns for our clients over the next 5to 10 years.”

Alan Stainforth, CEO for Parkridge operations in Central Europe,said: “We are very pleased with the launch of this Fund. Webelieve Poland presents great opportunities for us in terms ofdevelopment. Attracting and signing up major European retailtenants has shown us the real potential for these markets and wefully anticipate UK multiples to start expanding in theregion.”

The fund has been advised by Philip Marsden & Ian Playford ofthe London office of King Sturge who are retained as advisors tothe fund.

The Parkridge Central European Retail Property Fund is an EnglishLimited Partnership and an unregulated collective investment schemein the UK.

-ends-

For further information please contact:
Fiona Baker,Head of Corporate Communications
Morley Fund Management
020 7809 8617
fiona.baker@morleyfm.com
Or
Visit Parkridge http://www.parkridge-ce.com/en/

Notes to editors:

Morley Fund Management

Morley builds European Property Business

• August 2004 – Morley announces intention to invest £1billion in Continental European property on behalf of major lifefund client. Appoints Ben Stirling as European Fund Manager.
• September 2004 – Morley and Parkridge launch the€200m Parkridge European Distribution Fund to develop andown distribution warehouse parks in Central Europe.
• September 2004 – Morley appoints Julian Taylor as FundManager from Heitman International.
• November 2004 – Morley invests €100m in to thePillar European Retail Park Fund and takes up a strategicmanagement role for this Fund.
• January 2005 – Morley launches the Aviva CentralEuropean Property Fund, aimed at institutional investors lookingfor exposure to the Central European Property market.
• May 2005 – Morley appointed as fund manager to the newlylaunched Tri Investments European Residential Property Fund.
• July 2005 – Morley appoints Gilles Chow and Gil Bar asFund Managers.
• August 2005 - Morley launches Central European IndustrialFund

About Morley FundManagement
Morley Fund Management(‘Morley’) is a London based, asset management businesswith over £134 billion (€198 bn)** under management. Theproperty team manages in excess of £17 billion (€24bn) of UKand European property assets, making Morley one of the largestproperty fund manager in Europe. Winners of the high profileProperty Week Fund Manager of the Year Award 2004 and the UKPensions Awards 2005 Property Fund Manager of the Year, the teamconsists of over 60 investment professionals and manages a range offunds on behalf of institutional, pension and retail clients.Morley has been at the forefront of innovation in property fundmanagement and has launched a range of specialist sector basedfunds, including: Igloo Regeneration Fund, Quercus HealthcareProperty, The Junction and The Mall.

Visit www.morleyproperty.com

**Not including mortgage assets, as at 30/06/05

Telephone calls may be recorded for training and monitoringpurposes.

Morley Fund Management is a business name of Morley Fund ManagementLimited, registered in England No. 1151805. Registered Office: No.1 Poultry, London EC2R 8EJ. Authorised and regulated in the UK bythe Financial Services Authority and a member of the InvestmentManagement Association.

Morley Fund Management is also a business name of Morley FundManagement International Limited. Both are Aviva companies.

Contact us at Morley Fund Management, No. 1 Poultry, London EC2R8EJ.