Proposals for Reconstruction of the Trust

French Property Trust PLC
14 December 1999

                                  
RECOMMENDED PROPOSALS ANNOUNCED FOR THE RECONSTRUCTION OF FRENCH
     PROPERTY TRUST PLC ('FRENCH PROPERTY TRUST' OR 'FPT')

Summary

* Since  the  launch  of  the  SBF Finance (Real  Estate)  Index  (FPT's
  benchmark)  in January 1991, FPT's net asset value ('NAV') return  has
  outperformed the capital return on that index by approximately 80%.

* Despite FPT's good relative performance, and in common with many other
  investment  trusts, FPT's shares have been trading at a wide  discount
  to  their  underlying  NAV.   FPT's  board  and  Ivory  &  Sime  Asset
  Management Limited ('ISAM'), FPT's investment manager, have  therefore
  adopted a pro-active approach to enhancing shareholder value.

* Accordingly,  FPT's  board  and  ISAM,  in  conjunction  with  Intelli
  Corporate  Finance Limited (FPT's financial advisers), have  developed
  proposals  under  which  FPT  will  be  wound  up  voluntarily,   with
  shareholders' investments in FPT being rolled-over, in a tax-efficient
  manner, into The European Asset Value Fund ('EAVF').

* EAVF  is  a  Luxembourg  open-ended investment company  that  is  also
  managed  by  ISAM. Although EAVF's investment policy does not  have  a
  country  or industrial sector basis, EAVF's portfolio will, in future,
  concentrate  on  property  companies, property-related  companies  and
  investment holding companies, with a bias towards France.

* FPT's   directors   believe  that  the  proposals   have   significant
  attractions for shareholders.  In particular:-

  -      FPT's   directors  believe  that  the  implementation  of   the
     Proposals  will  result  in a significant increase  in  the  market
     value  of  shareholders'  investments  without  crystallising   any
     potential liability to UK taxation of capital gains; and
  
  -      ISAM   expects  that  the  consolidation  that  is  now  taking
     place  in  the  property and property-related  sectors  in  France,
     which  is  creating  larger  and more  marketable  companies,  will
     extend    to    other   European   countries   and    that    FPT's
     shareholders,  by  investing  in EAVF  with  its  wider  investment
     remit,  will  be  able to take advantage of this broader  range  of
     investment   opportunities,  as  well  as  opportunities   in   the
     investment holding company sector.

* For illustrative purposes only, it is estimated that, if the Proposals
  had  been  implemented  on  8  December  1999,  the  value  which  FPT
  shareholders would have received would be equivalent to an  uplift  of
  23.1 per cent. in the market value of their FPT shares at that date.

* FPT shareholders representing 70.8% of FPT's issued share capital have
  undertaken  to  vote in favour of the resolutions to  be  proposed  at
  extraordinary  general meetings of FPT convened for 7 and  17  January
  2000 which are necessary to enable the Proposals to be implemented.

Commenting on the proposals, William Fossick, a director of French
Property Trust, said:-

'We are pleased to have the overwhelming support of shareholders for our
proposals.   The  Board  and  managers of  French  Property  Trust  were
concerned at the poor rating of the Company's shares and recognised that
action  was  required  to  enhance shareholder value.   These  proposals
result  in  a  significant uplift in shareholder value whilst  providing
continued exposure to an attractive area.'


Enquiries:-

French Property Trust      William Fossick           0207 853 6931
                                                     
Ivory & Sime Asset         John Walton/              0207 853 6931
Management                 Mark Townsend
                                                     
Intelli Corporate Finance  Gordon Neilly             0207 653 6300
                                                     
Square Mile                James Melville-Ross       0207 601 1000


RECOMMENDED PROPOSALS ANNOUNCED FOR THE RECONSTRUCTION OF FRENCH
                      PROPERTY TRUST PLC


Introduction

The  board  of directors of French Property Trust announces that  it  is
proposing  a scheme of reconstruction of FPT.  Under the Proposals,  FPT
will  be  wound  up voluntarily, with Shareholders' investments  in  FPT
being  rolled over, in a tax-efficient manner, into European Asset Value
Fund.   EAVF  is  a  Luxembourg open-ended investment  company  that  is
managed  by  Ivory  &  Sime Asset Management Limited,  FPT's  investment
manager.

The  Proposals require the approval of Shareholders at two extraordinary
general  meetings of FPT which are being convened for 7 and  17  January
2000.   Shareholders representing 70.8 per cent. of the issued  Ordinary
Shares  have  undertaken  to vote in favour of  the  resolutions  to  be
proposed at those meetings.


Background to the Proposals

French Property Trust was launched on 13 April 1990 with the objective
of achieving long-term capital growth by investing mainly in quoted
French property companies.  Its investment policy was broadened in 1993
to allow limited investment in other continental European property
companies.

From  1  January 1991, when the SBF Finance (Real Estate)  Index  (FPT's
current  benchmark  index) was established, to  30  November  1999,  the
Company's   NAV  return  significantly  outperformed  the  corresponding
capital  return  of  the SBF Finance (Real Estate)  Index  (measured  in
sterling), as shown by the table below:-

      French Property Trust v SBF Finance (Real Estate) Index (£)
                                     Return to 30.11.99
                                                       Since      Since
                        1 Year   3 Years   5 Years  01.01.90   13.04.90
                                                                    (1)
French Property Trust     8.1%     71.4%     61.8%     80.3%      43.2%
-    NAV
SBF Finance (Real                                                      
Estate)   Index -         2.9%     29.2%     12.0%      1.9%          -
Capital Return (2)
Notes:-
1.   Calculated after the deduction of costs of launch of FPT.
2.   Currency adjusted.
Sources: ISAM and Datastream.

Despite the Company's good relative performance, and in common with many
other  investment  trusts, the FPT Shares have been trading  at  a  wide
discount to their underlying NAV, as shown in the table below:-

     FPT Share Price Discount to Underlying Net Asset Value
                                Year to 08.12.99
  At 08.12.99         Widest          Average        Narrowest
     20.9%             27.3%           21.0%           13.8%

Source: Datastream.

In  view  of the continuing level of the FPT Share price discount,  the
Board  and  ISAM  have  adopted  a  pro-active  approach  to  enhancing
Shareholder  value and have been in discussions with Intelli  Corporate
Finance  Limited, FPT's financial advisers, in order to decide  on  the
best  approach to achieving such enhancement.  As a result,  the  Board
and  ISAM, in conjunction with Intelli Corporate Finance Limited,  have
developed the Proposals.


The Proposals

The Proposals provide for the Company to be put into members' voluntary
liquidation and for the transfer to EAVF of FPT's assets (after setting
aside cash and other assets in the Liquidation Fund).  In consideration
for  such  transfer,  Shareholders will receive  EAVF  Shares  with  an
aggregate  NAV  equal  to  99 per cent. of the  NAV  (calculated  after
deducting the Liquidation Fund and the aggregate amount of the intended
second  interim dividend of 4.5p per FPT Share referred  to  below)  of
their Ordinary Shares.

The  cash and other assets to be set aside in the Liquidation Fund will
be  such amount as FPT's liquidators consider sufficient to provide for
all   FPT's  outstanding  liabilities  (including  the  costs  of   the
Proposals),  together  with a provision of £100,000  for  contingencies
over  and above those liabilities.  In addition, the Directors estimate
that  FPT is entitled to refunds of French and UK tax of, in aggregate,
approximately £670,000 (based on the rate of exchange as at  the  close
of  business on 8 December 1999 of FF10.4071:£1) which, to  the  extent
that  they  are  not  received  by FPT prior  to  the  Proposals  being
implemented, will form part of the Liquidation Fund.

For  illustrative purposes only, it is estimated that, if the Proposals
had  been  implemented on 8 December 1999, the value  of  FPT's  assets
transferred  to EAVF would have been approximately £32.1  million.   On
that  basis,  a  holder of one Ordinary Share would have received  EAVF
Shares  with an aggregate NAV of 127.2p, equivalent to 99 per cent.  of
the  value  of FPT's assets (on a per Ordinary Share basis) transferred
to EAVF.

Subject to no unforeseen circumstances occurring, the Directors  expect
FPT's  liquidators to make capital distributions, in cash, out  of  the
Liquidation Fund to Shareholders shortly after receipt of  the  UK  and
French  tax refunds.  If no contingencies arise and no tax refunds  are
received prior to the Proposals being implemented, the Directors expect
that  the  total  amount  of such distributions will  be  approximately
£770,000 or 3.1p per FPT Share.

For  illustrative purposes only, it is estimated that, if the Proposals
had  been  implemented  on 8 December 1999, a  Shareholder  would  have
received, in respect of each FPT Share:-

*    EAVF Shares with an aggregate NAV of 127.2p;

*    a second interim dividend of 4.5p;  and

*    in   due  course  capital  distributions  of  not  less  than,  in
     aggregate, 3.1p;

together representing 97.3 per cent. of FPT's Current NAV per share and a
premium of  23.1  per cent. to the mid-market price of a FPT Share  as  at 
the close of business on 8 December 1999 of 109.5p.

As  part  of  the  Proposals, ISAM has agreed to  waive  its  right  to
compensation for the early termination of its management agreement with
FPT  (in the absence of such waiver, ISAM would have been entitled,  on
implementation  of  the Proposals, to compensation equal  to  1.25  per
cent. of FPT's NAV).


Benefits of the Proposals

The   Board   believes  that  the  Proposals  should  have  significant
attractions for Shareholders.  In particular:-

* as  the  EAVF  Shares may be redeemed at their NAV  (subject  to  the
  redemption charge referred to under the heading 'European Asset Value
  Fund'  below), the implementation of the Proposals will result  in  a
  significant   increase  in  the  market  value  of  a   Shareholder's
  investment; and

* ISAM  expects that the consolidation that is now taking place in  the
  property  and property-related sectors in France, which  is  creating
  larger  and more marketable companies, will extend to other  European
  countries and that Shareholders, by investing in EAVF with its  wider
  investment  remit,  will be able to take advantage  of  this  broader
  range of investment opportunities, as well as those in the investment
  holding company sector.

In  addition,  the  Proposals have been structured in  a  tax-efficient
manner  so  as  to  avoid crystallising any potential liability  to  UK
taxation of capital gains.  Furthermore, the Directors believe that the
Proposals  are cost-effective for Shareholders, with the costs  of  the
Proposals to be borne by FPT being approximately 1.8 per cent. of FPT's
Current NAV.  This low level of costs has been achieved principally  as
a  result  of  ISAM  waiving its right to compensation  for  the  early
termination  of its management agreement with FPT and the compatibility
of  FPT's  portfolio  with  EAVF's  future  investment  remit,  thereby
avoiding portfolio reorganisation costs.


European Asset Value Fund

European Asset Value Fund is an open-ended investment company that  was
incorporated  in  Luxembourg in August 1994.  The  objective  of  EAVF,
which  is  managed by ISAM, is long-term capital growth from investment
in  undervalued  asset situations.  As at the close of  business  on  8
December  1999, EAVF had net assets of US$35.8 million,  equivalent  to
£22.0  million  (based  on the rate of exchange  as  at  the  close  of
business on 8 December 1999 of US$1.6258:£1).

EAVF  measures  its  investment performance against  the  HSBC  Smaller
Europe  (inc. UK) Index (measured in US dollars).  Since its launch  on
31  August  1994, EAVF's NAV return has significantly outperformed  the
corresponding capital return of its benchmark index, as  shown  in  the
table below:-

              EAVF v HSBC Smaller Europe (inc. UK) Index
                                        Return to 30.11.99
                                                                  Since
                                 1 Year   3 Years    5 Years   31.08.94
EAVF - NAV                        15.9%     71.4%     124.1%     114.9%
HSBC Smaller Europe (inc.                                              
UK)  Index - Capital              14.9%     37.8%      69.0%      61.2%
Return (1)
French Second Marche Index                                             
-    Capital Return (1)(2)        -0.7%      9.4%      37.1%      26.1%
Notes:-
1.   Currency adjusted.
2.   Whilst EAVF does not use the French Second Marche Index as a
 benchmark, it has been included in view of the large proportion of
 EAVF's portfolio which is invested in French companies (32.2 per cent.
 as at 8 December 1999).
Sources: ISAM and Datastream.

Although EAVF's investment policy does not have a country or industrial
sector  basis,  it is intended that EAVF's portfolio will,  in  future,
concentrate  on  property  companies,  property-related  companies  and
investment holding companies, with a bias towards France.

The  EAVF  Shares  are  issued and redeemed on a weekly  basis  through
EAVF's  paying  agent at prices, denominated in US  dollars,  based  on
their  underlying  NAV.   The redemption of  EAVF  Shares  is  normally
subject  to  the delivery of a redemption request to EAVF at  least  21
days  prior to the weekly valuation date as at which redemption  is  to
occur.  A redemption charge may be levied of no more than 1.5 per cent.
of the redemption NAV of EAVF Shares redeemed within 18 months of their
issue.  Redemption charges will be retained by EAVF for the benefit  of
its remaining shareholders.

ISAM  is entitled to a basic investment management fee of 1.0 per cent.
per  annum of EAVF's NAV.  In addition, from 1 April 2000 ISAM  may  be
entitled to receive a performance-related investment management fee  of
up to a further 1.5 per cent. per annum of EAVF's NAV.  The performance-
related fee will only be payable in the event of the NAV return  of  an
EAVF  Share consistently outperforming the capital return of  the  HSBC
Smaller  Europe (inc. UK) Index (measured in US dollars), both  in  the
short term and, in due course, over the longer term.


Investment Outlook

European Economic Conditions

Whilst  economic growth in Europe is forecast to have slowed  in  1999,
economic  growth in Europe and, in particular, a number of the  western
European countries is forecast to accelerate again in 2000, as shown in
the table below:

          Percentage Change in Real GDP from Previous Period
                                        1998    Projection  Projection
                                                      1999        2000
European Union                          2.8%          1.9%        2.4%
Euro Area                               2.9%          2.1%        2.6%
                                                                      
Germany                                 2.8%          1.7%        2.1%
France                                  3.2%          2.3%        2.6%
Italy                                   1.4%          1.4%        2.2%
UK                                      2.1%          0.7%        1.6%
Source:  OECD.

ISAM  anticipates  that  growth in money supply,  in  conjunction  with
historically  low  nominal  interest  rates,  is  contributing  towards
economic   growth  and  increased  European  consumer   and   corporate
confidence.

European Property and Property-related Sectors

ISAM  believes  that continental European property and property-related
companies  are  now benefiting from a reduction in the  over-supply  of
space  built in the late 1980s and early 1990s and an increase  in  the
demand for prime modern property, which together are causing rents  and
capital  values to rise.  In addition, ISAM believes that property  and
property-related  companies are beginning  to  look  beyond  their  own
borders  for  opportunities  elsewhere in Europe  where  value  can  be
created and synergies exist.

The French property and property-related sectors have seen considerable
corporate  activity  over the last three years, with  companies  owning
property  assets consolidating, selling or swapping them for shares  in
quoted  companies.   This  consolidation is creating  larger  and  more
marketable  companies.   ISAM  expects  the  process  of  consolidation
through rationalisation and restructuring to extend to the property and
property-related sectors in a number of other European countries.

ISAM  anticipates that these developments in the European property  and
property-related sectors should give rise to further opportunities  for
achieving good investment returns from companies in those sectors.

European Investment Holding Companies

There   are  a  number  of  investment  holding  companies  in  Europe,
particularly  in  France,  with market capitalisations  that  stand  at
significant  discounts  to  the estimated  value  of  their  underlying
investments.   ISAM  expects  many of these  companies  to  come  under
pressure to enhance shareholder value, mainly through restructuring  or
rationalising their assets.


Second Interim Dividend

The  Directors intend to pay a second interim dividend of 4.5p per  FPT
Share,   amounting,  in  aggregate,  to  substantially   all   of   the
distributable income of the Company for the period from 1 January  1999
(after  taking into account the interim dividend of 0.5p per FPT  Share
paid  on  10  September 1999) and the Company's revenue reserves.   The
second interim dividend will be paid on the date on which the Proposals
are  implemented  to  Shareholders on the  register  at  the  close  of
business on Monday, 10 January 2000.


Extraordinary General Meetings

The Proposals require the approval of Shareholders at two extraordinary
general meetings of FPT.

The first extraordinary general meeting will be held at noon on Friday,
7  January 2000.  Special resolutions will be proposed at that  meeting
to  amend  FPT's  articles  of association  for  the  purposes  of  the
Proposals and to approve the Proposals.

The second extraordinary general meeting will be held at 11.00 a.m.  on
Monday, 17 January 2000.  A special resolution will be proposed at that
meeting to wind-up the Company.

Shareholders representing 70.8 per cent. of FPT's issued share  capital
have undertaken to vote in favour of the resolutions to be proposed  at
the extraordinary general meetings referred to above.


Expected Timetable

Circular containing full details of Proposals  
despatched to Shareholders                     14 December 1999
                                               
First extraordinary general meeting of FPT     noon  on  Friday, 7  January
                                               2000
                                               
Time as at which respective NAVs of FPT and    
EAVF are calculated for purposes of Proposals  5.00 p.m. on Wednesday, 12
                                               January 2000
                                               
Second extraordinary general meeting of FPT    11.00 a.m. on Monday, 17
                                               January 2000
                                               
Payment date for FPT's second interim          Monday, 17 January 2000
dividend
                                               
Effective date for implementation of           Monday, 17 January 2000
Proposals
                                               
EAVF Shares issued to Shareholders under       Monday, 17 January 2000
Proposals
                                               
Dealings in FPT Shares suspended               Tuesday, 18 January 2000



Enquiries:-

French Property Trust      William Fossick           0207 853 6931
                                                     
Ivory & Sime Asset         John Walton/              0207 853 6931
Management                 Mark Townsend
                                                     
Intelli Corporate Finance  Gordon Neilly             0207 653 6300
                                                     
Square Mile                James Melville-Ross       0207 601 1000


14 December 1999

Definitions

The following definitions apply throughout this announcement
unless the context otherwise requires:-

'Board' or 'Directors'               the directors of the Company
                                     
'Company', 'French Property Trust'   French Property Trust PLC
or 'FPT'
                                     
'EAVF Shares'                        shares of no par value in the capital
                                     of EAVF
                                     
'European Asset Value Fund' or       The European Asset Value Fund
'EAVF'                               

'FPT's Current NAV'                  the  NAV  of FPT as at the  close  of
                                     business  on  8 December 1999,  being
                                     £34.6 million
                                     
'ISAM'                               Ivory & Sime Asset Management Limited
                                     
'Liquidation Fund'                   the  fund to be retained by the FPT's
                                     liquidators  to meet its liabilities,
                                     including the costs of the Proposals
                                     
'NAV'                                net asset value
                                     
'Ordinary Shares' or 'FPT Shares'    fully  paid  ordinary shares  of  25p
                                     each in the capital of FPT
                                     
'Proposals'                          the  proposals for the reconstruction
                                     and  winding-up  of  French  Property
                                     Trust described in this announcement
                                     
'SBF Finance (Real Estate) Index'    Societe    des   Bourses   Francaises
                                     Finance (Real Estate) Index
                                     
'Shareholders'                       holders of Ordinary Shares