Interim Management Statement

Wichford P.L.C.

("Wichford" or the "Company")

Interim Management Statement

17 February 2011

The Board of Wichford P.L.C., the property investment company, today issues the following Interim Management Statement relating to the period from 1 October 2010 to 17 February 2011.

Overview

The Company has made a satisfactory start to the current year with trading for the first quarter ahead of that for the comparable period last year.

The Board has continued making progress in relation to the strategic review of options previously announced, and a further announcement will be made shortly.

Property Portfolio

Acquisitions

The following UK acquisitions were completed in the period under review.

DSA Driving Test Centre, Dundee

·; Newly developed motorcycle test centre, occupied by the Driving Standards Agency (DSA) and opening for tests on 28 February 2011

·; Let to the Secretary of State for Communities and Local Government until November 2050 with break dates in November 2025 and every five years thereafter

·; The acquisition, providing long-dated inflation-linked income returns, was acquired through a pre-let forward funding agreement with the developer

·; Five yearly rent reviews linked to UK RPI

·; Purchase price of £2.11 million reflecting a net initial yield of 6.72%

Equitable House, Harrow

The recently approved change to the Company's Investment Policy has enabled the acquisition of the site adjacent to Lyon House, Harrow which is expected to enhance the planning application for the proposed redevelopment and secure potential marriage value between the two sites.

·; Completed on 17 February 2011

·; Site of approximately 0.3 hectares situated adjacent to Lyon House, Harrow

·; Purchase price of £3.05 million

Lyon House, Harrow

The Company has made further progress on planning and redevelopment proposals for a proposed residential-led mixed-use scheme. The acquisition of Equitable House will enable a comprehensive planning application across both sites. Discussions to secure a Registered Social Landlord (RSL) for the affordable housing element of the scheme are progressing in line with management's expectations. A planning application is expected to be submitted within this financial year.

Lettings & Occupancy

Occupancy remained broadly unchanged since September 2010 at 96.3%. Lease breaks or expiries in 2011 equate to rental income of £0.96 million p.a.

Letting and asset management initiatives at the Crescent Centre, Bristol are progressing in line with expectations. Negotiations on extensions of existing leases on 11,551 sq ft of space are at advanced stages of negotiation.

Rent Reviews

62.6% of the portfolio benefits from CPI / RPI indexation or fixed increases. Inflation in the UK has continued to remain well above the Bank of England's 2.0% target benefitting rent reviews subject to CPI or RPI.

The following rent reviews were settled or are in the process of being agreed:

·; Newcastle - fixed uplift in December 2010 from £110,381 p.a. to £113,140 p.a. reflecting an annual fixed 2.5% p.a. increase

·; Grays - CPI rent review increase from £145,480 p.a. to £155,842 p.a. representing a 7.1% uplift in passing rent

·; St Asaph - stepped rent provisions increase passing rent from £457,442 p.a. to £505,238 p.a. reflecting a 10.4% increase

·; Paisley - CPI rent review with anticipated increase from £195,000 p.a. to £210,600 p.a. representing a 8.0% increase in passing rent

·; The Hague - annual Dutch CPI uplift from €2,153,050 p.a. to €2,185,234 p.a. agreed representing a 1.5% increase in passing rent

Cash Position and Dividend

As at the date of this announcement the Company has approximately £26.7 million of available cash after accounting for the purchase of Equitable House and the payment of the final dividend.

The final dividend of 0.33 pence per share totaling £3.50 million is due to be paid on 1 March 2011 to all shareholders on the register on 4 February 2011.

Debt Facilities

VBG2 Facility

As previously announced the Company has agreed an LTV waiver and is in ongoing discussions to extend or restructure the facility.

The €53.10 million outstanding on this facility is secured against two German properties in Cologne and Stuttgart. The facility matures in April 2011.

Outlook

The investment market has shown signs of increased liquidity with properties being priced on length of income and covenant strength as investors look for secure income yielding assets. Market expectations for 2011 are for widening yield spreads between prime and secondary assets with demand for prime assets remaining strong while higher equity requirements and more expensive debt financing for secondary property is likely to put upward pressure on yields.

Bank lending to property remains constrained as banks continue to reduce their exposure to the sector, however lending from the institutional market for long-dated maturities appears to be active for the right assets.

The Company remains focused on the strategic priorities established for 2010/2011 including the completion of its Strategic Review, securing a sustainable financing structure and managing the portfolio to protect future occupancy and rental income, repositioning assets with better alternative uses and disposing of underperforming assets.

Philippe de Nicolay, Chairman of Wichford commented:

"I am pleased to report trading for the first quarter ahead of that last year despite the ongoing challenges in the property investment and financing markets. The Board has been heavily engaged in progression of the strategic options available to Wichford, and we will update shareholders in relation to the strategic review shortly."

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 primarily by Central and State Government bodies. Over three quarters of the portfolio comprises public sector rented properties in the UK with the remainder in Germany and the Netherlands.