Interim Results

Wichford P.L.C.

("Wichford" or the "Company")

Half-yearly Results

Wichford P.L.C., the property investment company, is pleased to announce its half-yearly results for the six months ended 31 March 2011.

Highlights

Trading Operations Profit after tax £5.9m (March 2010: £4.3m)

Total loss after tax £12.3m (March 2010: profit of £18.0m)

Trading Operations earnings per share 0.56p (March 2010: 0.40p)

Total earnings per share a loss of 1.16p (March 2010: profit of 1.69p)

Declared interim dividend per share 0.32p (March 2010: 0.32p)

Total Portfolio at Market Values £565.7m (September 2010: £573.5m)

Net Assets £54.9m (September 2010: £59.0m)

Net asset value per share 5.17p (September 2010: 5.56p)

EPRA net assets per share 7.26p (September 2010: 8.67p)

Other Highlights

Portfolio's Weighted Average Unexpired Lease Term 8.7 years (September 2010: 9.1 years)

Indexation of rent roll 63% (September 2010: 63%)

Portfolio's occupancy rate 96% (September 2010: 96%)

Ongoing VBG2 facility negotiations

Philippe de Nicolay, Chairman of Wichford, commented today:

"It is pleasing to report the progress made so far this year in a challenging environment. The results are encouraging with improvements in both revenue and earnings per share from Trading Operations compared to the same period last year. I look forward to making a positive announcement about the proposed merger with Redefine International plc shortly."

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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. Over three quarters of the portfolio comprises public sector rented properties in the UK with the remainder in Germany and the Netherlands.

Chairman's Statement

It has been a challenging but productive period during which a strategic review was completed and the terms of a potential merger (the "Merger") with the Company's largest shareholder, Redefine International plc ("Redefine") were announced on 23 March 2011. Further details related to the Merger are contained below and in the Business Review. Your Company has seen continued solid trading performance in the first half of the year, albeit the current UK Government fiscal policy and budgetary constraints pose challenges to occupier and investor demand in regional office markets going forward.

Financial & Operating Highlights

Trading Operations earnings per share of 0.56 pence reflect a 40.0% increase on the same period last year. Occupancy remained broadly unchanged although increased vacancy is anticipated in the second half of this financial year. Rental income was supported by the acquisitions made in 2010 which offset the impact of the loss of income at Lyon House, Harrow where redevelopment and planning proposals have been progressed.

EPRA net asset value per share decreased 16.3% to 7.26 pence (September 2010 8.67 pence), principally due to lower property values. Headline net assets continue to reflect the significant negative fair value of interest rate swaps and the consolidation of the VBG negative net asset value position, further details of which are provided in the Financial Review.

Capital values declined 2.3% reflecting limited demand for regional offices, particularly those with shorter lease lengths and concerns over re-letting. The current government regime requiring centralised approval for all new lease commitments has slowed decision making and is also anticipated to result in a general decline of average lease lengths in the portfolio in the near term.

The impact of the Government's Comprehensive Spending Review ("CSR") cannot yet be fully determined as cuts to departmental budgets and public sector jobs are still to be fully implemented. The occupational market remains challenging and competition amongst landlords with vacant space is placing pressure on terms for new leases. The Company does not have a significant exposure to lease breaks in the short term, though some increase in the overall vacancy level is anticipated as departments consolidate. We have however completed a number of lease renewals and extensions and remain confident that the Group's ability to provide cost effective accommodation will secure future occupancy in a number of cases.

Strategic Review & Potential Merger

Recognising the refinancing requirements that the Group has over the short-term, the Board has completed a thorough strategic review of the options available to the Company. These included, inter alia:

·; an equity issuance to assist with the refinancing of the Delta and Gamma facilities which mature in October 2012;

·; a CMBS restructuring facilitated through the servicer of the Windermere CMBS conduits;

·; a liquidation strategy;

·; de-leveraging through asset sales;

·; a fundamental change in the management and structural arrangements of Wichford, and

·; a merger with Redefine International plc coupled with a future capital raising.

Although each of these strategies individually may have merit, and some could be pursued post merger, the Board of Wichford considers that the Merger would provide the strongest basis for progression with a supportive and well-capitalised major shareholder to facilitate the capital raising that may be required.

It is anticipated that, subject to the satisfaction or waiver of all pre-conditions and obtaining all required regulatory and shareholder approvals or acceptances, the Merger could be announced under Rule 2.5 of the Takeover Code during the second quarter of 2011 and, if approved, completed during the third quarter of 2011.

The Company remains in a takeover period as defined by the Takeover Code and this report contains additional disclosure requirements of the Takeover Panel. Further details of the Merger are contained within the Business Review.

Dividend

The Directors have resolved to pay an interim dividend of 0.32 pence per share. This dividend is covered 1.75 times by current Trading Operations earnings.

The dividend is in line with the terms of the Merger which provide for an interim dividend of no less than 0.32 pence per share for the six month period ended 31 March 2011 to all Wichford shareholders on the shareholder register on the record date in advance of the Merger completing.

Outlook

The Board believes firmly that the Merger is in the best interests of the Company and therefore its shareholders and places the Company in a stronger position to secure new capital and a sustainable financing structure. This has been the key strategic priority for 2010/2011 and the Company will be focussed on satisfying the necessary conditions and obtaining approvals. It is anticipated that the circular calling for an extraordinary general meeting to approve the terms of the Merger will be circulated to shareholders in the second quarter of 2011.

At the same time, we remain focussed on protecting occupancy and rental income in a challenging occupier market and look to reposition assets with better alternative uses. I look forward to reporting on further progress.

Philippe de Nicolay

Chairman

Organisation

Wichford P.L.C. is an Isle of Man registered property investment company. The principal activity of the Company and its subsidiaries is the generation of rental income and capital growth through investment in properties across the UK and Continental Europe which are occupied mainly by Central and State Government bodies.

The Ordinary Shares of the Company were admitted to trading on AIM in August 2004 and subsequently moved to the Main Market of the London Stock Exchange in December 2007.

The Company's investment policy is approved by shareholders and appears on the Company's website www.wichford.com

The following Shareholders have notified the Company that they are interested in 3% or more of the Company's issued share capital:

The Board currently consists of the Chairman and five non-executive directors all of whom are independent from the management team of the Company's Investment Adviser, Wichford Property Management Limited ("WPML").

The Group has no employees and the Directors manage the Group through the use of external service providers.

WPML acts under an Investor Advisor's Agreement and manages the Group on a day-to-day basis. It coordinates the other external service providers.

The administration of the Isle of Man companies in the Group is provided under a service contract with Simcocks Trust Limited. Included in this contract is the provision of the Company Secretary and associated services and advice.

The UK portfolio of properties is managed by WPML and the Continental European properties are managed by local, professional service providers.

The majority of the UK properties are owned through Isle of Man registered companies. The remaining UK properties are owned through companies registered in the BVI, Gibraltar, Jersey and the UK; all of these companies were purchased in order to acquire the underlying property owned by each.

The Halle property in Germany is owned by a German limited partnership with the Group's ownership being held by Isle of Man registered companies.

The VBG portfolio of properties in Germany is owned by German limited partnerships which are owned by German and Luxembourg companies.

The Hague property in the Netherlands is owned by a company registered in the Netherlands.

Business Review

The Company has had a busy period with the completion of the strategic review, negotiation of the terms of the Merger with Redefine as well as a continued focus on managing near term lease events and occupancy through re-letting, refurbishment and redevelopment initiatives.

Earnings from Trading Operations continue to reflect sound income and cash generation. This was supported by investments completed in 2010, the management of operating costs and revenue growth from indexed-linked lease reviews over the past year. Results for the half year also contain a number of non-cash finance charges as a result of movements in interest rate derivatives and accruals for costs associated with the strategic review. Further details are contained within the Financial Review.

EPRA net asset value per share declined to 7.26 pence (September 2010: 8.67 pence) as a result of a decline in valuation on a like for like basis of the property portfolio of 2.3%. Lower capital values reflect uncertainty over occupier and investor demand and a near-term trend of declining lease lengths. The Company continues to hold substantial cash reserves of £40.7 million as at 31 March 2011.

Strategic Priorities for 2010/2011

A number of priorities were set out at the time of the last Annual Report. The table below shows the progress made in the first six months of the financial year on these priorities.

Potential Merger of Wichford and Redefine

As previously announced the boards of Wichford and Redefine have reached an in principle understanding regarding a potential combination of the two companies. An overview of the proposed terms and rationale for the Merger are described below. Shareholders are directed to the rule 2.4 announcement available on the Wichford website (http://www.wichford.com/) for further details.

Strategic Rationale

The Merger would create an enlarged, income-focused property company (the "Enlarged Company") with a large, well diversified investment property portfolio, listed on the main market of the London Stock Exchange. The Enlarged Company would have an improved capital structure, benefiting from Redefine's attractive long term debt facilities, as well as a commitment from the Enlarged Company's largest shareholder, Redefine Properties International Limited ("Redefine Properties International"), which is listed on the Johannesburg Stock Exchange ("JSE"), and its parent Redefine Properties Limited ("Redefine Properties") to support a fully pre-emptive capital raise in the future.

In particular, the Board of Wichford believes that the Merger represents a clear and strong complementary fit, creating a company in the mid-tier of the UK listed property sector with:

·; good growth prospects, an improved capital structure and better access to capital;

·; complementary income focused portfolios, diversified by geography, asset and tenant type;

·; an enlarged shareholder base which may enhance trading liquidity for shares in the Enlarged Company; and

·; potential for reduced combined expenses as a result of the elimination of certain public company costs.

Financial Terms & Ownership

Wichford is expected to make an all share offer for the entire issued and to be issued share capital of Redefine at an exchange ratio of 7.2 Wichford shares for every Redefine share. On completion of the Merger and based on the existing number of Redefine shares in issue at the time of announcement, existing Redefine shareholders would hold approximately 79 per cent. of the issued shares of the Enlarged Company. Existing Wichford shareholders (other than Redefine as a shareholder in Wichford) would hold approximately 21 per cent. of the issued shares of the Enlarged Company.

Redefine Properties International would become the majority shareholder in the Enlarged Company with a shareholding of approximately 65 per cent. Redefine Properties International is approximately 57 per cent. owned by Redefine Properties, which is also listed on the JSE and currently has a market capitalisation of R19.6 billion (approximately £1.7 billion).

Further information about Redefine is available on Redefine's website at http://www.redefineinternational.je/.

Capital Commitment

It is expected that the Enlarged Company would, in due course, seek to raise equity capital on a fully pre-emptive basis to reduce the gearing ratio of the Enlarged Company and to assist, inter alia, with the refinancing of Wichford's existing debt maturities in October 2012. It is currently expected that the preferred route for a Capital Raising would involve issuing new equity at a tight discount, on a fully pre-emptive basis.

As part of the Merger it is expected that Redefine Properties International, with the support of its parent company, Redefine Properties, will agree to subscribe to at least its pro rata share of any Capital Raising (as may be agreed by the Board of the Enlarged Company and undertaken prior to 31 October 2012) of up to £100 million of gross proceeds. Based on the undiluted issued share capital on 22 March 2011, Redefine Properties International's pro forma shareholding in the Enlarged Company would be approximately 64 per cent.

Corporate Structure, Management Team and Board of Directors

The Enlarged Company would continue to be managed by Wichford Property Management Limited. It is expected that, following the completion of the Merger, the Board of the Enlarged Company would conduct a review of the management and tax structure of the Enlarged Company.

It is proposed that, immediately following the Merger, the Board of the Enlarged Company will consist of nine directors including:

·; four former Wichford non-executive directors, one of whom will be the Chairman of the Enlarged Company;

·; two former Redefine independent non-executive directors;

·; one new non-executive director;

·; one non-executive director appointed by Redefine Properties International; and

·; one executive director of Wichford Property Management Limited, which is 76 per cent. owned by Redefine Properties.

Our Business

Wichford's predominantly Central and State Government tenants provide the Company with a secure rental income stream and a historically low vacancy rate. Many of the Company's UK tenants provide "core" government functions with associated public interfaces such as Job Centres, Courts and HMRC functions, many of which have local occupation obligations. The Group's strategy to incorporate inflation related rental increases into leases has resulted in 63% of rental income being linked to either CPI, RPI or in a small number of cases fixed increases.

Economic Overview

Private sector employment growth continues to offset public sector job cuts so that general measures of unemployment have been broadly flat. Further announcements on public sector cuts are likely to place increasing pressure on local economies that are highly dependent on public sector employment.

Inflation remains high although both headline and core rates dropped back in March helping to maintain the current low interest rate environment. Longer term interest rates remain attractive and securing or extending existing facilities in the current interest rate environment remains a priority.

Key Performance Indicators ("KPIs")

In order to drive cash flow growth and protect income security Wichford uses the following KPIs to monitor performance:

Indexation and occupancy remained broadly unchanged during the period. Above average inflation continues to provide rental growth on tenancies subject to either CPI or RPI escalation clauses (see Asset Management). The average unexpired lease length in the portfolio decreased due to the passage of time. Measures to extend lease lengths have been delayed recently mainly due to the government's current stance on new or extended lease commitments. Notwithstanding this, asset management initiatives achieved the completion of a new lease to Trillium at Newington Causeway, retaining the existing Job Centre in occupation.

The UK Government's Comprehensive Spending Review

While it is still too early to gauge the full impact of the UK Government's budgetary cuts there has been a noticeable change in government tenants' approach to renewals and key lease events, with central approval of business cases now being necessary. Despite this, the Company continues to achieve new leases and lease extensions, particularly for existing tenants where continued occupation provides attractive rental terms and avoids considerable relocation costs. However, the UK Government's focus on reducing the public deficit together with excess supply of secondary office space in a number of regional office markets presents a challenging operational environment.

Adapting to Change

The Company has previously identified the need to meet the challenges of the existing market by seeking opportunities to convert certain properties to more profitable alternative uses, and ensuring new investment is directed into assets that reflect the current and future requirements of government and other occupiers.

Portfolio

The portfolio remained broadly unchanged in the six months to March 2011. The acquisition of the DSA test centre in Dundee was completed following practical completion of the development works in November 2010. The purchase of Equitable House, Harrow has enabled the Company to take control of the entire site at Lyon Road, Harrow which will support the proposed planning application. The number of properties in the portfolio increased to 83 (September 2010: 81) following these two acquisitions.

Note: Initial yields and rents for the Continental European portfolio reflect gross rents before deductions for irrecoverable costs.

Valuation

The overall portfolio value decreased 2.3% on a like-for-like basis. The UK Portfolio reduction of 3.5% resulted from two predominant factors; the anticipated impact of the Comprehensive Spending Review on the regional office market and an increased sensitivity to properties with shorter lease lengths.

Values in Continental Europe decreased by 0.7% in local currency terms, however a stronger Euro during the period resulted in an increase of 1.4% in Sterling terms. An indexed-linked rent review triggered a 7.3% increase in passing rent at Berlin which, in turn, supported a 2.4% valuation increase. Although yields remained relatively constant, declining unexpired terms continue to negatively impact the overall valuation.

Notes:

1) The like-for-like analysis re-classifies properties in prior periods as Core or Active dependent on their current classification

2) The movement in new acquisitions reflects an increase in value against the purchase price before certain transaction costs from their date of acquisition

3) Like-for-like movements exclude the movement on capitalised items on the consolidated statement of financial position

Measuring Performance

The UK and Continental European Portfolio's total return for all benchmarked assets as measured by IPD was 0.1% and 5.5% respectively. By comparison the IPD benchmark (UK monthly and quarterly valued offices) produced a total return of 5.8% over the same six month period to 31 March 2011. The stronger benchmark performance relative to the UK Portfolio assets was largely attributable to the City and West End office sectors of the benchmark (to which Wichford has no exposure) which produced a total return of 10.5% and 8.3% respectively for the same period. The other sector components of the benchmark, Rest of South East and Rest of UK, produced total returns of 2.4% and 0.8% respectively.

Asset Management

Lettings & Lease Extensions

Vacancy remained broadly unchanged at 3.8% (September 2010: 3.7%) which includes 99,527 sq ft of space at Lyon House, Harrow which is subject to a proposed planning application and not available to let. Vacancy as at 31 March 2011 excluding Lyon House stood at 1.2% (September 2010: 1.0%).

A new lease to Trillium was completed in December 2010 following agreement to substantially refurbish the existing services at London, Newington Causeway while maintaining the existing Job Centre in occupation. The new 13 year lease with a break option in 2018 has a commencing rent of £315,000 p.a.

Rent Reviews

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 provision increased 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

·; Aberdeen, Lord Cullen House - open market rent review agreed at an uplift of 6.6% from £478,250 p.a. to £510,000 p.a.

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

·; Berlin - German CPI uplift from €1,339,131 p.a. to €1,437,531 p.a. reflecting a 7.3% increase

Expiry Profile

Wichford's near term expiry profile reflects a relatively small exposure to lease break options and expiries over the next three years. No more than 3.3% of the Company's total rent roll has a break or expiry in any one year for the next three years.

·; The Group's UK Portfolio is predominately occupied by Central Government bodies, many of which are core services and/or public facing

·; The UK Portfolio has limited exposure to quangos and none have been identified for closure

·; A significant portion of the UK Portfolio (% by UK rent roll) falls under the Trillium PRIME and Mapeley contracts, neither of which are directly subject to the 'moratorium' on new or extended leases

Development Opportunities

The Company has made further progress on planning and redevelopment proposals for the proposed residential-led mixed-use scheme at Lyon Road, Harrow. 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.

Acquisitions

Two acquisitions were completed during the period. The DSA driving test centre in Dundee was acquired through a pre-let forwarding funding agreement with the developer. The property is occupied by the DSA and 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 provides long-dated inflation-linked income returns with five yearly rent reviews linked to RPI.

The recently approved change to the Company's Investment Policy enabled the acquisition of the site adjacent to Lyon House, Harrow. This is expected to enhance the proposed planning application for the Harrow redevelopment and secure potential marriage value between the two sites. The site was acquired with vacant possession, with the Company now controlling the entire site subject to the proposed planning application.

Summary of 2010/2011 Acquisitions

Continental European Portfolio

The Company has reviewed a number of options in relation to the VBG1 and VBG2 portfolios as well as the overall Continental European Portfolio. It is anticipated that these will be progressed further once the Company is outside of a takeover period.

As highlighted in the last Annual Report, the Continental European Portfolio continues to produce positive earnings for the Group despite the negative net asset value position associated with the VBG properties. The options available to the Company will be reviewed in light of the assets' current and potential future contribution to Group profits, opportunities to recycle capital back into the UK market and the potential capital requirements associated with refinancing the VBG and other European funding facilities. The non-recourse nature of the Group's Continental European investments provides the Company with a wide range of options.

Risks & Opportunities

The Group is subject to a variety of risk factors arising from the overall economic environment, supply and demand within the real estate investment and capital markets, complex regulatory and legislative environments, financial risks as well as the Group's own properties, tenants and suppliers.

The principal risks to the Group are managed and controlled in the following way:

Further commentary on Financial Risk Management is contained in note 16.

Looking Forward

The Company completed its strategic review and subsequently announced, on 23 March 2011, the potential merger with Redefine. The strategic review was a key priority for 2010/11 and the Board of Wichford believes the Enlarged Company will create a diversified, income-producing property portfolio that benefits from a significant capital commitment from its largest shareholder.

The Enlarged Company will be in a stronger position to support Wichford's strategic priorities and the Merger represents a clear and strong complimentary fit, creating a company in the mid-tier of the UK listed property sector (see Chairman's statement for more detail on the Strategic Review).

Financial Review

The Group's financial results benefited from a stronger investment market in the UK and strong underlying earnings from Trading Operations. Total profits and earnings per share from Trading Operations were up year on year.

Income Statement and Earnings Per Share

Basic earnings per share from Trading Operations were 0.56 pence (March 2010: 0.40 pence; September 2010: 0.90 pence), up £1.6 million or 37.2% on the March 2010 results, showing resilient underlying earnings strength.

A £16.7 million revaluation loss on investment properties (March 2010: a gain of £14.2 million; September 2010: a gain of £10.1 million) led to an overall loss of £12.3 million (March 2010: a profit of £18.0 million). Basic earnings per share for the six months to 31 March 2011 was a loss of 1.16 pence per share.

Revenue

Revenue for the period was £23.0 million, an increase from the period to March 2010 of £1.1 million. There have been a number of successful rent reviews within the last 12 months; those relating to the current period are detailed in the Asset Management section of the Business Review.

Administrative Expenses

Administrative expenses include the cost to the Group of refurbishments required to attract new tenants to vacant space. This has contributed to the slight increase in these costs since March 2010. The Group is continuing to benefit from the actions taken in the previous financial year to reduce costs in the areas of audit services and offshore administration. Other costs have increased and these are now being addressed; this includes the a provision in regard to the strategic review and other non-recurring items.

Administrative expenses included a release of the accrual of £0.4 million (March 2010: nil: September 2010: £0.4 million) for performance fees to the Investment Adviser which was made in the previous financial year. This was deemed to be a share-based payment scheme granted to the Investment Adviser which was recognised as an expense, with the corresponding increase in equity, over the period the Investment Adviser becomes entitled to the awards. It is currently believed that no new shares will be issued under this scheme, and as such these performance fee accruals are no longer required.

Net Finance Costs

Finance costs under Trading Operations were down £0.8 million from the same period last year resulting from lower interest charges following the extension of the Zeta and VBG1 facilities at lower prevailing interest rates as well as lower borrowing levels following the periodic repayment of part of the Hague and VBG loans.

Taxation

The tax charge consists of an expense of £0.3 million for current taxation. This is mainly from the Non Resident Landlord scheme operated by HMRC and for which the Group has an agreement to the method to calculate this liability until the maturity of the current UK facilities.

There is also a £0.8 million charge to profit and loss for deferred tax resulting from the timing differences in how the Group will recover its original investment in investment properties. However, if the assets had been sold at the end of the reporting period at 31 March 2011, the tax liability would have been £0.1 million.

Dividend

The Directors have declared an interim dividend of 0.32 pence per share. The dividend cover ratio for the period based on earnings from Trading Operations is 1.75 times.

Statement of Financial Position & Net Asset Value

The Group net assets were £54.9 million down from £59.0 million at 30 September 2010. The key factors behind this were revaluation losses of £16.7 million, dividend payments of £3.5 million which were partly offset by a fall in the derivative financial liabilities of £11.8 million.

Net asset value per share was 5.17 pence down from 5.56 pence at 30 September 2010.

Cashflow

As at 31 March the Group had £40.7 million (March 2010: £60.5 million; September 2010: £41.7 million) of cash and equivalents. Of this only £0.2 million was not available to the Group after the payment of interest and loan repayments made in April 2011.

The Group generated £9.5 million from its operating activities and acquired two further properties, which together with capitalised costs, totalled £5.9 million.

During the six months to 31 March 2011 the Group repaid a total of £1.1 million in loans from the regular quarterly repayments scheduled under the VBG and Hague facilities.

The final dividend for the year to September 2010 of £3.5 million, as approved by shareholders at the Annual General Meeting, was paid in the period.

The overall result was that the Group's cash balances declined by £1.0 million during the six months to 31 March 2011.

Financing and Capital

Securing a sustainable financing structure remains a strategic priority for 2010/2011. The recent strategic review and resulting proposed merger (which benefits from a substantial capital commitment from the largest shareholder) are significant steps forward in this process.

The Company has started discussions with a number of lending institutions in advance of its October 2012 maturities. A leading UK bank has been appointed as the Company's agent and will, together with the Company, assess a wide range of options for new funding including longer term fixed rate financing.

The current interest rate environment provides an opportunity to secure longer-term rates at attractive levels. Early refinancing options will be considered to provide security over the Company's future interest costs and capital structure.

Negotiations around the VBG2 facility continue following the maturity date in April 2011. The VBG2 borrowing entities have signed a standstill agreement with the facility servicer in order to continue negotiations around restructuring the facility. Both parties are actively working towards a mutually beneficial solution although there can be no certainty as to the outcome.

The Company has noted its intention to provide an orderly exit from Europe and that the non-recourse nature of the Group's Continental European assets, including the VBG portfolio, provides a wide range of options at the Group's disposal.

The weighted average cost of debt as at 31 March 2011 (including VBG1 taken at the relevant three month Euribor rate) is 5.02% (September 2010: 5.00%).

Notes:

1) ICR equivalent covenant waived following increased funding charges

2) Previous LTV covenant of 85% waived for the extended maturity period

3) Previous LTV covenant of 86% waived

Hedging

The Group uses interest rate swaps and interest rate caps to limit its exposure to interest rate movements.

For facilities to which interest rate swaps are attached the interest rates are fixed for the duration of the facility. This is the case for all the Group's facilities except VBG1. For this facility the Group has interest rate caps which limit the exposure to upward movements while allowing the Group to take advantage of falls in interest rates. These interest rate caps are not designated as cash flow hedges and any changes in their fair value will be taken to profit and loss rather than through other comprehensive income.

The current interest rate swap for the Zeta facility is also not designated a cash flow hedge and any changes in its fair value will be taken to profit and loss rather than through other comprehensive income. For the interest rate swaps cancelled in the previous financial year the fair value previously taken to equity is being transferred to profit and loss over their original remaining life to maturity.

Exchange Rates

The average Euro to Sterling exchange rate for the six months to 31 March 2011 was 1.16316 (March 2010: 1.11613; September 2010: 1.15088).

The closing Euro to Sterling exchange rate at 31 March 2011 was 1.13730 (March 2010: 1.12040; September 2010: 1.16170).

GOING CONCERN

After considering the relevant factors, the Directors have a reasonable expectation that the Company has adequate resources to continue in operation for the foreseeable future. They have, therefore, adopted the Going Concern basis in preparing these financial statements. Details of the factors considered can be found in Note 1 "Basis of Preparation" of the Financial Statements.

Management Commentary

In December 2010 the International Accounting Standards Board ("IASB") issued an IFRS Practice Statement entitled "Management Commentary" to provide a broad framework for a management commentary that relates to financial statements prepared in accordance with IFRSs, as Wichford does. The Practice Statement is not an IFRS and companies applying IFRSs are not required to comply with it.

In order to maintain its high standard of reporting the Company has decided to comply with this Practice Statement and the Organisation, Business Review and Financial Review form the Company's Management Commentary.

Ten Largest Investments

Statement of Directors Responsibilities in respect of the half-yearly financial report

Each of the Directors confirms that to the best of each person's knowledge and belief;

a) the condensed consolidated interim financial statements comprising the condensed consolidated statement of comprehensive income, the condensed consolidated statement of financial position, the condensed consolidated statement of changes in equity, the condensed consolidated statement of cash flows and related notes have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU.

b) The interim management commentary includes a fair review of the information required by:

i. DTR 4.2.7R of the Disclosure and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year;

ii. DTR 4.2.8R of the Disclosure and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during the period; and any changes in the related party transactions described in the last annual report that could do so.

Condensed Consolidated Statement of Comprehensive Income

for the six months ended 31 March 2011

All activities are continuing.

Condensed Consolidated Statement of Financial Position

As at 31 March 2011

Consolidated Statement of Changes in Equity

for the six months ended 31 March 2011

The cumulative foreign exchange difference included in the Retained earnings reserve is a loss of £8.5 million (March 2010: a loss of £11.8 million; September 2010: a loss of £6.8 million). In the cash flow hedges reserve the cumulative foreign exchange difference is a loss of £0.2 million (March 2010: a loss of £0.9 million; September 2010: a loss of £0.2 million).

The amount of the Currency translation reserve taken to the profit or loss was nil (March 2010: nil; September 2010: a charge of £0.8 million).

Condensed Consolidated Cash Flow Statement

for the six months ended 31 March 2011

Notes to the Financial Statements

1. Basis of Preparation

The unaudited condensed consolidated half-yearly financial statements of the Company for the six months ended 31 March 2011 comprises the Company and its subsidiaries (together referred to as the "Group").

Due to the Company being in an offer period as announced on 15 November 2010 the Company is required to make additional disclosures under Rule 29 of the Takeover Code. These disclosures primarily relate to investment properties and taxation and have been included in notes 10 and 7 respectively.

The preparation of interim financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Actual results may differ materially from these estimates. In preparing these half-yearly financial statements, the significant judgements made by management in applying the Company's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the Consolidated Financial Statements as at and for the year ended 30 September 2010.

The financial information included in the half-yearly financial statements are unaudited and does not constitute statutory accounts as defined in the Isle of Man Companies Acts 1931-2004 (as amended).

The consolidated financial statements of the Group as at and for the year ended 30 September 2010 are available upon request from the Company's Registered Office at Top Floor, 14 Athol Street, Douglas, Isle of Man IM1 1JA or at www.wichford.com.

Basis of Measurement

The financial statements are prepared on the historical cost basis, except for investment property, derivative financial instruments and share based payment transactions that are measured at grant date fair value.

Functional Currency

The Group's presentation currency is pounds Sterling which represents the functional currency of the Company and a number of key subsidiaries. All financial information is presented in millions of pounds sterling (£m), rounded to the nearest million unless otherwise indicated.

Going Concern

These financial statements have been prepared on a going concern basis as the Directors consider this the most appropriate basis.

After considering the relevant factors, the Directors have a reasonable expectation that the Group has adequate resources to continue in operation for the period of their review being the 12 months to May 2012.

The principal issues the Directors considered in their enquiries concerned loan maturities including the VBG2 facility which matured in April 2011 together with the strategic review announced in November 2010. The strategic review included an assessment of strategic options, including addressing the longer term financing position of the Company.

Following the period end a standstill agreement has been entered into with the loan servicer for the VBG2 facility to allow the on-going but non-concluded negotiations to continue. The Directors note that this facility is ring-fenced with no recourse to the other assets of the Group. They also note that the VBG1 facility has already been successfully extended after negotiations with the same loan servicer, although there can be no certainty that a similar or any agreement is reached on the extension of the VBG2 facility.

The Directors have also taken into consideration that the Delta and Gamma facilities have successfully been extended to October 2012, even though this is outside of their review period of 12 months to May 2012. It is not currently known whether a further extension will be achieved. The strategic review addressed this topic and the terms of the proposed merger with Redefine include a commitment to a capital raising before the maturity of these facilities in October 2012. The Directors believe that this, combined with new loan facilities, will enable alternative funding to become available before October 2012 to replace the Delta and Gamma facilities.

Statement of Compliance

These condensed consolidated half-yearly financial statements have been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the EU. Both interim figures for the six months ended 31 March 2011 and the comparative amounts for the six months ended 31 March 2010 are unaudited but have been reviewed by the Independent Auditors. The summary financial statements for the year ended 30 September 2010, as presented in the interim financial statements, represent an abbreviated version of the Group's full accounts for that year, on which independent auditors issued an unqualified audit report. The financial information presented herein does not amount to statutory financial statements.

The condensed consolidated interim financial statements were approved by the Board of Directors on 20 May 2011.

2. Significant Accounting Policies

The accounting policies applied by the Group in these condensed interim financial statements are the same as those applied by the Group in its audited financial statements as at and for the year ended 30 September 2010.

The Directors have considered all IFRSs and interpretations as adopted by the EU that have been issued, but which are not yet effective and confirm that they do not believe that they will have a significant impact on how the results of operations and financial position of the Group are prepared and presented. The Directors have also considered those IFRSs as adopted by the EU that became effective during the period and confirm that there is no significant impact on how the results of operations and financial position of the Group has been prepared and presented.

Critical Judgements and Estimates

The preparation of financial statements in conformity with IFRS requires the use of judgements and estimates that affect the reported amounts of assets and liabilities at the reporting date and the reported amounts of revenues and expenses during the year reported. Although these estimates are based on the Directors' best knowledge of the amount, event or actions, actual results may differ from those estimates.

The principal areas where such judgements and estimates have been made are:

Investment Property Valuation

The Group uses the valuation performed by its independent valuers as a fair value of its investment properties. The valuation is based upon assumptions including estimated rental values, future rental income, anticipated maintenance costs, future development costs and appropriate discount rates. The valuers also make reference to market evidence of transaction prices for similar properties.

Taxation

The Group is exposed to the risk of changes to tax legislation in the various countries in which the Group operates. It is also exposed to different interpretations of tax regulations between the tax authorities and the Group.

Deferred Taxation

The Group considers that the value of the property portfolio is likely to be realised by both the sale and the use over time.

The Group bases its deferred taxation provision on the assumption that the residual value of the investment properties is not less than the present value as provided by its external valuers.

The Group makes an initial estimate of the length of time that each property will be held in order to determine the initial recognised exemption for both the in use and on sale elements for each property. Periodically the Group will review the length of time for which each property will continue to be held and this can be significantly different from the residual of the time from the initial estimate.

The resulting provision, being subject to assumptions on the length of the time that each property will be held by the Group which can change over time, can lead to significantly different results for each property from one period to another.

The recoverability of any deferred tax asset is assessed and, where it is thought unlikely that a recovery will be made, is not included in the Group's provision.

Derivative Financial Instruments

The fair value of derivatives actively traded instruments is determined by reference to bid prices at the close of business on the reporting date. Where there is no active market, fair value is determined using valuation techniques. These include using recent arms-length market transactions, reference to the current market value of another instrument which is substantially the same and discounted cash flow analysis and pricing models.

Additionally, the Group tests the effectiveness of these instruments half-yearly and the estimated ineffective portion is recorded through profit or loss rather than taken to other comprehensive income.

3. Operating Segments

The business activity of the Group is property investment in the UK and Continental Europe which the Board considers to be the only business segment as presented previously in the Annual Report. However, the Board manages the Group by looking at the Continental European operations separate from the rest of the Group and so there are two reportable segments.

The following summary describes the operations in each of the Group's reportable segments:

·; UK - Includes all UK properties together with all associated legal entities.

·; Continental Europe - Includes all non-UK properties together with all associated legal entities.

Reportable segment assets and profit/(loss) for operating segments are presented based on internal funding allocations. The differences to the condensed consolidated statement of comprehensive income and the condensed consolidated statement of financial position are due to corporate activities.

In both reportable segments the principal customers are Central and State Government departments.

4. Revenue

5. Administrative Expenses

The following items have been charged in arriving at operating profit:

The performance fee is payable by Wichford P.L.C. to Wichford Property Management Limited ("WPML") and will be satisfied by the issuance of new shares at the prevailing market price at the time of payment, under which WPML will acquire Ordinary Shares in Wichford P.L.C. at no cost.

The amount of any award is calculated as 20 per cent of the amount by which the total return on the Ordinary Shares in Wichford P.L.C. exceeds 12 per cent per annum for the first award under the contract and 10 per cent per annum for subsequent awards. A separate calculation of the amount of the annual award is made in relation to each separate tranche of Ordinary Shares in Wichford P.L.C. issued during the relevant three-year period.

The award of shares will only vest if the Company's return on property over each three-year period from the beginning of the relevant financial year to the end of the period two years later, is in the top 40 percentile of the IPD All Office Index. The Company has engaged IPD to make this comparison. The number of shares to be issued is only known at the end of each three year period as the cash equivalent earned under this scheme is only ascertainable at that stage and is divided by the average share price for the last 20 business days of the three year period.

The grant-date fair value of the award granted to the Investment Adviser was estimated based on multiple scenarios. Expected volatility and dividends are estimated by considering historic average data.

The Company has reviewed the performance fee and it is currently regarded as highly unlikely that the performance condition of the Company's return on property being in the top 40 percentile of the IPD All Office Index, as described above, will be met and so is taking the opportunity to revise the accrual made to date to reflect this circumstance. This has resulted in a credit to the condensed consolidated statement of comprehensive income in the amount of £0.4 million with the corresponding debit in equity.

A summary of the items included in Other Items for Administrative Expenses is shown below.

6. Finance Income and Costs

7. Income Tax Expense

(a) Tax on Profit from Ordinary Activities

During the year to 30 September 2010 the Company reached agreement with HMRC over the previous tax periods and made payment of all resultant tax. No penalties, except for interest on late payment, were charged to the Group.

 (b) Deferred Tax

Deferred tax included in the Condensed Consolidated Statement of Financial Position is as follows:

Deferred tax included in the Condensed Consolidated Statement of Comprehensive Income is as follows:

The deferred tax provision reflects the likely tax charge in future periods based on the current expectation of how long each property will be owned. The calculation of this provision is based on separate calculations for recovering the initial investment through its use and on sale. See note 7(d) for potential tax liability on the disposal of assets.

No deferred tax asset has been recognised due to the uncertainty of it being realised.

(c) Factors Affecting the Tax Charge in the Year

As the Group's properties are principally in the UK and owned by companies registered in the Isle of Man the Company regards the UK's income tax rate of 20% (March 2010: 20%; September 2010: 20%), as payable under the UK's Non Resident Landlord Scheme, to be most relevant tax rate for the reconciliation of the theoretical tax charge on accounting profits to the tax charge for the year shown through the profit or loss.

This reconciliation is shown below.

(d) Potential Tax Liability on the Disposal of Assets

In accordance with Rule 29.3 of the Takeover Code, Shareholders should note that the valuation reports from Savills Commercial Limited and DTZ have not taken into account any liability for tax which may arise on a disposal, whether actual or notional, of the Company's assets. If the properties which are the subject of the valuation reports were to be sold at the amounts of these valuation reports the Board estimates that the potential tax liability that would arise would be approximately £0.1 million.

8. Earnings Per Share

Basic earnings per share for the six months ended 31 March 2011 is based on the loss attributable to equity shareholders of £12.3 million (March 2010: profit of £18.0 million; September 2010: profit of £17.0 million) and a weighted average number of Ordinary Shares outstanding during the six months ended 31 March 2011 of 1,062,095,584 (March 2010: 1,062,095,584; September 2010: 1,062,095,584).

The potential number of shares that may be issued under the performance fee arrangements with the Investment Adviser was nil at 31 March 2011 (March 2010: nil; September 2010: 12,214,183) as the estimated value of the incentive scheme was £1.1 million for the first three-year period, being the period from 1 October 2009 to 30 September 2012. There is no additional accrual for the second three-year period, being the period from 1 October 2010 to 30 September 2013 after removing any double-counting of performance for the same time periods.

No shares are expected to be issued under the performance fee arrangements and so the basic and diluted earnings per share are the same for the current period.

For EPRA basis total earnings per share figure refer to note 22.

9. Net Assets Per Share

Net assets per share is calculated by dividing the net assets at 31 March 2011 attributable to the equity holders of the parent of £54.9 million (March 2010: £57.0 million; September 2010: £59.0 million) by the number of Ordinary Shares as at 31 March 2011 of 1,062,095,584 (March 2010: 1,062,095,584; September 2010: 1,062,095,584).

The potential number of shares that may be issued under the performance fee arrangements with the Investment Adviser was nil at 31 March 2011 (March 2010: nil; September 2010: 12,214,183) as the estimated value of the incentive scheme was £1.1 million for the first three-year period, being the period from 1 October 2009 to 30 September 2012. There was no additional accrual for the second three-year period, being the period from 1 October 2010 to 30 September 2013 after removing any double-counting of performance for the same time periods.

No shares are expected to be issued under the performance fee arrangements and so the basic and diluted net assets per share are the same for the current period.

For EPRA basis net asset value figures refer to note 22.

10. Investment Properties