Debt Facilities Progress Report

Wichford P.L.C.

("Wichford" or the "Company")

Debt Facilities Progress Report

12 July 2010

Wichford P.L.C., the property investment company, is pleased to announce that it has made significant progress with regard to its debt facilities.

European Debt Facilities

VBG1 Facility

The Company has now concluded an extension of the VBG1 facility until 22 January 2012. In addition, the loan to value ("LTV") covenant has been waived for the extended maturity period.

The facility agreement has been amended to include, amongst others, provisions to release funds in the following order:

§ Fixed payments to the Company of €94,000 per quarter as reimbursement for sponsor costs;

§ Interest payments as detailed below;

§ Amortisation based on the original loan balance of €71,200,000 at the pre-maturity rate of 1.25% p.a.;

§ Payments to the Company of €125,000 per quarter; and

§ Any additional funds to be applied to either amortisation or capital expenditure at the discretion of the Servicer

Quarterly interest payments will be three month Euribor plus an unchanged margin of 1.10%. As part of the restructuring, the Company is obliged to enter into interest rate caps of 2.50% on or before 15 July 2010.

Quarterly interest payments and therefore the availability of surplus funds will be subject to three month Euribor interest rates at each interest payment date. However, the total effective interest rate will be capped at a maximum of 3.60% as a result of the interest rate caps described above. The new arrangements represent a substantial decrease in interest costs compared with the previous effective fixed rate of 4.27%.

The restructuring utilises the current low interest rate environment to generate sufficient cashflow to amortise the loan balance while also providing the Company with a suitable income return.

VBG2 Facility

The Company has previously reported an LTV ratio for the VBG2 facility in excess of the 86% LTV covenant. The Company's own valuations are however not addressed or used by the Servicer to report on LTV covenants. As anticipated, the Servicer has recently requested and received an updated valuation confirming an LTV ratio in excess of the LTV covenant and notified the Company.

The Company is in ongoing negotiations with the Servicer and all available options to extend or restructure the loan are being considered. The options available are in line with those previously communicated on VBG1 and the Company remains confident that an agreement which is beneficial to both parties can be achieved.

Further announcements will be made in due course.

UK Debt Facilities

Further progress with regards to extending both the Gamma and Delta facilities from October 2010 to October 2012 has been made.

Gamma Facility

Wichford has previously announced the acquisition of St George House, Leeds. The Company is also pleased to announce that the substitution of St George House into the Gamma facility was completed on 29 June 2010. This property, let to Leeds City Council until February 2083 with no break options, is sufficient to increase the weighted average unexpired lease term ("WAULT") to above 7.5 years from October 2012 - the principal criteria for extending the facility to October 2012. Accordingly the Company will make a formal extension request before the end of July 2010.

Delta Facility

The Company has also completed the acquisition of West Tullos Industrial Estate, Aberdeen for £2.1m. This acquisition was referred to in the Company's latest Half-yearly Financial Report at which point heads of terms had been agreed.

The property is let to the Aberdeen City Council until February 2134 providing an unexpired term in excess of 123 years. The current income is £100,000 p.a. reflecting a net initial yield of 4.50%. Whilst the yield is relatively low, this acquisition provides a capital efficient solution to extend the WAULT of the portfolio as a result of the extremely long unexpired lease length.

It is proposed that the property will be pledged to the Delta facility and an extension request will be made once all necessary substitutions are completed.

The Company has now completed on all the necessary acquisitions to extend both the Gamma and Delta facilities.

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

"I am very pleased with the progress the Company has made with its debt facilities. Although the process remains ongoing with VBG2, the extension of the VBG1 facility and progress on the Gamma and Delta facility extensions are significant steps towards securing the medium term funding position of the Company and meeting the objectives set out at the time of the Rights Issue.

I look forward to updating Shareholders with further news of the Company's progress later this year."

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.