Company Update

Wichford P.L.C.

("Wichford" or the "Company")

Extension of Lloyds (Zeta) Facility, VBG2 LTV Waiver, Acquisition & Disposal

20 July 2010

Wichford P.L.C., the property investment company, is pleased to announce the extension of its facility with Lloyds TSB, agreement of a loan to value ("LTV") waiver on the VBG2 Facility and the completion of an acquisition and sale.

Extension of Lloyds (Zeta) Facility

The Company has agreed an extension of its £46.0m Zeta facility for a further two year period. The maturity date is now extended to 12 May 2013.

Interest rate hedging for the facility has been extended to the new maturity date and the existing margin remains unchanged. The new effective fixed rate of 3.88% (previously 5.18%) will result in a reduction in interest charges of £598,000 p.a. The new rate will be effective from 20 July 2010.

The extension was subject to an extension fee of 0.25% of the loan amount equating to £115,000.

VBG2 Facility LTV Waiver

As previously announced on 12 July 2010, the Servicer has requested and received an updated valuation confirming the LTV ratio is in excess of the 86% LTV covenant.

The Company has subsequently requested an LTV waiver which has been granted. Additionally the Company is holding discussions over options to extend or restructure the facility closer to maturity.

The €53.6m VBG2 facility is secured against two German properties in Cologne and Stuttgart. The facility matures in April 2011.

Acquisition of Park Place/St Paul's Street, Leeds

Wichford has exchanged contracts on 21/22 Park Place and 71/77 St Paul's Street, Leeds for £7.40m reflecting a net initial yield of 8.12%. The property is located in a prime city centre location within the traditional Leeds office core.

The property is let to the Secretary of State for the Environment for an unexpired lease term of approximately 7.8 years and is occupied by the largest JobCentre Plus in Leeds. The current income of £635,719 p.a. is subject to five yearly upward only rent reviews.

The purchase price reflects a low capital value of £189 per sq ft which together with the core location affords a number of asset management opportunities to enhance the value of the property.

Sale of Osprey House, Redditch

Wichford has concluded the sale of Osprey House, Redditch for £2.95m. The property, which is multi-tenanted to both government and non-government occupiers, has a weighted average unexpired lease term of less than two years. The property has been sold to one of the existing tenants. The sales price is equal to the March 2010 valuation.

Philippe de Nicolay, Non-executive Chairman of Wichford P.L.C. commented today:

"The extension of the Zeta facility is yet another significant achievement in securing the Company's medium term funding position and the acquisition of Leeds reflects the continued positioning of the portfolio toward larger, regionally dominant centres which provide opportunities to add further value through active asset management."

For further details, please contact, 

Notes to editors

Wichford P.L.C. (UK Listed: WICH) is a property investment company, with a portfolio focused on investment property occupied principally by Central and State Government bodies. Approximately a quarter of the portfolio comprises public sector rented properties in France, Germany and the Netherlands.