Interim Management Statement

Wichford P.L.C.

("Wichford" or the "Company")

Interim Management Statement

19 August 2010

The Board of Wichford P.L.C., the property investment company, today issues the following Interim Management Statement relating to the period from 1 April to 19 August 2010.

Overview

The Company has made substantial progress in achieving the milestones set out at the time of the Rights Issue in August 2009, by securing its medium term financing and actively managing its property portfolio.

Specifically, the period under review has resulted in the successful extension of three debt facilities, including two of the three UK facilities totaling £245.7 million and the extension and restructuring of the VBG1 facility of €67.1 million.

The Company has also been active in managing the portfolio, completing two further acquisitions since the end of the first half of the financial year for a total purchase price of £9.50 million and achieving sales at or above valuation on two properties which had limited growth and asset management prospects.

Property Portfolio

Acquisitions

The following UK acquisitions have completed in the period under review and have been previously announced.

West Tullos Industrial Estate, Aberdeen

§ Let to the Aberdeen City Council until February 2134 providing an unexpired term inexcess of 123 years

§ Purchase price of £2.10 million reflecting a net initial yield of 4.50%

§ Highly capital efficient solution to extend the WAULT of the UK portfolio

Park Place and St Paul's Street, Leeds

§ Let to the Secretary of State for the Environment for an unexpired lease term of approximately 7.8 years

§ Occupied by the largest JobCentre Plus in Leeds

§ Purchase price of £7.40 million reflecting a net initial yield of 8.12%.

§ The core location together with current low capital value provides a number of asset management opportunities to enhance the value of the property

Sales

As previously announced, Wichford has concluded the sale of Osprey House, Redditch for £2.95 million. The property, which is multi-tenanted to both government and non-government occupiers, had a weighted average unexpired lease term of less than two years. The property has been sold to one of the existing tenants. The sale price is equal to book value.

The Company has also exchanged contracts for the sale of St Cloud for €6.13 million, 3.1% ahead of the latest valuation in local currency terms. The property is the Company's only French asset and the sale will help to simplify the overall property portfolio geographically as well as the corporate structure and recycle capital back into the UK portfolio.

These sales are in line with Wichford's objective of improving the overall quality of the portfolio through recycling capital from properties with limited growth prospects into new investments providing asset management opportunities.

Lettings & Occupancy

Crescent Centre, Bristol

§ Negotiations for lease extensions on 11,551 sqft are underway in order to make various departmental lease terms co-terminus and in line with asset management opportunities identified on acquisition

§ In addition, negotiations with an existing tenant are underway for the renewal of 1,632 sqft

Lease expiries at Harrow and floors one to three at Croydon have increased vacant space by 122,426 sqft. Wichford's portfolio continues to have a high occupancy rate of 96.2%, generating a steady and robust income stream.

Progress on the planned refurbishment or redevelopment of Harrow is encouraging with significant interest from potential joint venture partners. A number of options are being considered including a residential-led mixed use scheme.

Rent Reviews

60.0% of the portfolio benefits from CPI / RPI indexation or fixed increases and accordingly the Company has benefitted from a number of upward only rental reviews.

§ Bromley - a fixed increase from £965,000 p.a. to £1,200,000 p.a. has been settled effective from March 2010. The property is let to the Secretary of State for the Environment until March 2022 with a tenant break option in March 2018.

§ Dalkeith - CPI rent review increase of 6.7% from £110,000p.a. to £117,402 p.a. has been settled

§ Bradford - anticipated RPI rent review increase of 13.7% from £1,750,000 p.a. to £1,989,134 p.a.

§ Oldham - anticipated CPI rent review increase of 5.8% from £205,000p.a. to £216,968 p.a.

§ Woodlands, Bedford - anticipated fixed increase from £900,000 to £981,555 p.a. reflecting a fixed 1.75% p.a. compound increase

Cash Position

As at the date of this announcement the Company had approximately £24.0 million available for acquisitions, comprising available cash balances and cash on deposit to be released following the completion of various substitutions.

Debt Facilities

The Company has succeeded in securing two year extensions of both the Gamma and Zeta facilities totaling £245.7m or 68% of the Company's UK debt facilities until October 2012 and May 2013 respectively. In addition, Wichford has completed all the necessary acquisitions to extend the £114.6m Delta facility for a further two year period until October 2012.

These extensions, together with the restructuring and renegotiations of both the VBG1 and VBG2 facilities outlined below are a very significant improvement to the medium term funding structure of the Company and are in line with the objectives set out by Wichford at the time of the Rights Issue. As a result of these successful negotiations, the Company has also achieved a reduced average total interest rate of 5.24%.

Delta Facility

The Company will be submitting a formal extension request before the end of August 2010 following the substitution of Westwey House, Weymouth and West Tullos Industrial Estate, Aberdeen into the facility. A further announcement will be made once the extension to October 2012 has been confirmed.

Gamma Facility

The facility has been extended to October 2012 following the substitution of Park Place & St Paul's Street, Leeds into the facility and acceptance of the extension request by the Security Trustee. All other terms of the facility remain unchanged including the total interest cost of 5.52%.

VBG1 Facility

The Company 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.

Quarterly interest payments 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% following the purchase of interest rate caps of 2.50%. The new arrangements represent a substantial decrease in interest costs compared with the previous effective fixed rate of 4.27%.

These new terms will provide regular quarterly releases of surplus funds of up to €219,000 per quarter.

The €67.1 million VBG1 facility is secured against two German properties in Berlin and Dresden. Further details of the key restructuring provisions are contained in the announcement released on 12 July 2010.

VBG2 Facility

As announced on 20 July 2010, the Company has agreed an LTV waiver and is in discussions to extend or restructure the facility closer to maturity.

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

Zeta Facility

As announced on 20 July 2010, the Company has agreed a two year extension of the Zeta (Lloyds TSB) facility to 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 expense of about £598,000 per annum. The new rate is effective from 20 July 2010.

Outlook

The market continues to be two tiered, with long-dated government-backed leases, particularly to Central Government bodies, attracting strong demand from institutional investors. At the same time, concerns over the UK budget deficit and limited bank funding for short term leases continues to result in short-term leases being priced at significantly higher yields. This is expected to continue until improved occupier demand reduces re-letting risk.

Wichford's UK portfolio continues to reflect a low average rent of £12.5 psf and the Company is actively assessing opportunities to assist the UK government in the provision of cost effective office accommodation. The Government's recent introduction of Treasury approval for all new leases and lease extensions until the end of April 2011 is expected to lead to an overall reduction in space being occupied by government departments, but it is anticipated that this will create opportunities to provide cost effective accommodation to departments currently occupying property at relatively high rental levels.

The Company has a limited amount of space subject to near term break options or expiries. Approximately 60,000 sq ft with a passing rent of £0.96 million is subject to potential break options or lease expiries before April 2011. Of this, negotiations for extensions or renewals on approximately 35,000 sq ft are in progress.

Previously reported cost efficiencies of approximately £0.70 million p.a. will begin to be reflected in this year's results and will be fully reflected in the next financial year.

Results and Dividend

The final dividend will be recommended to Shareholders at the time of the final results in mid December 2010 for payment in March 2011. The final dividend will be subject to Shareholder approval at the Annual General meeting in January 2011.

The results and dividend are expected to be in line with management expectations.

Philippe de Nicolay, Chairman of Wichford commented:

"Wichford has continued its strong recovery following its Rights Issue in 2009. The Company's portfolio has been carefully managed and successful negotiations have been conducted with its major debt providers. Wichford can now look to make strategic acquisitions and sales with a view to maintaining and growing its income stream and dividends."

For further details, please contact, 

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