GBP11.0m sale of Sevenoaks residential building

2nd March 2015

Development Securities sells Tubs Hill House in Sevenoaks for an initial payment of £11.0 million

Development Securities today announces that it has completed the sale of Tubs Hill House to Prime Place, Willmott Dixon's residential development business, for an initial payment of £11.0 million, realising an initial profit of £3.0 million. Tubs Hill House, a 64,800 sq. ft. office building 200 metres from Sevenoaks station, was acquired in November 2013 for £5.5 million from administrators acting on behalf of Lloyds Banking Group.

Since acquisition, Development Securities has secured vacant possession of the building and also Permitted Development Rights to convert the offices into residential accommodation. A planning application is currently being progressed for a residential conversion of up to 91 units and upon successfully securing planning consent, Development Securities could receive a further top up payment of up to £2.0 million.

Matthew Weiner, Executive Director, Development Securities PLC said: "Tubs Hill House will create a desirable new residential tower in Sevenoaks, a key London commuter town where residential demand is very strong. Willmott Dixon is an experienced residential developer and we are pleased to have secured a sale to such a high quality partner. This latest sale demonstrates our trading activities whereby we are able to source sound opportunities and then capture value over the short-term, adding to our strengthening cash flows."

For further information, please contact:

Matthew Weiner/Lucy Grimble, Development Securities PLC

020 7828 4777