Launch of 6.25% retail bond due 2019

The information contained herein may only be released, published or distributed in the United Kingdom, Jersey, Guernsey or the Isle of Man. The information contained herein is not for release, publication or distribution in or into the United States, Australia, Canada, Japan, the Republic of Ireland, South Africa or in any other jurisdiction where it is unlawful to distribute this document.

17 October 2012

ST. MODWEN PROPERTIES PLC LAUNCHES 6.25% RETAIL BOND DUE 2019

("St. Modwen" or "the Company")

St. Modwen Properties PLC, the UK's leading regeneration specialist and constituent of the FTSE250 index, has today launched 6.25% Sterling Bonds due 2019 (the "Bonds"), available to retail investors. 

St. Modwen has a UK property portfolio which is valued at £1.1 billion, comprises 5,800 acres and is split into income-producing investments, residential land and commercial land and development. St. Modwen has a 25 year track record of adding value to its landbank by managing schemes through the planning process, remediating contaminated land and active asset management.

Bill Oliver, Chief Executive, St. Modwen Properties PLC, commented:

"We are delighted to announce the launch of St. Modwen's first retail bond. With significant headroom on our existing debt facilities, the retail bond will provide St. Modwen with more diversity in its funding sources, without increasing our gearing."

The Bonds will pay a fixed rate of interest of 6.25% per annum, payable twice yearly on 7 May and 7 November of each year with the first coupon payment being made on 7 May 2013 and the Bonds maturing on 7 November 2019. At any time during the life of the Bond, investors are permitted to sell the Bonds (within market hours and in normal market conditions) on the open market through their stockbroker.

Investec Bank plc and Numis Securities Limited will act as Joint Lead Managers on this issue.

The Bonds have a minimum initial subscription amount of £2,000 and in multiples of £100 thereafter. The offer period will open on 17 October 2012 and is expected to close at noon on 31 October 2012. St. Modwen retains the right to close the offer early, in conjunction with the Joint Lead Managers.

The Bonds are expected to be listed on the UK Listing Authority's Official List and admitted to trading on the London Stock Exchange's regulated market and through the electronic Order Book for Retail Bonds.

The Authorised Distributors are:

·; Barclays Stockbrokers Limited

·; Brewin Dolphin Limited (trading as Stocktrade)

·; Killik & Co LLP

·; Peel Hunt LLP

·; Redmayne-Bentley LLP

·; Talos Securities Limited (trading as Selftrade)

·; NCL Investments Limited (trading as Smith and Williamson Securities)

·; WH Ireland Limited

-Ends-

For further information, please see St. Modwen's website: www.stmodwen.co.uk/bonds.

For media enquiries please contact:

Notes to Editors

1. The Bonds may not be suitable for all investors. Investors should ensure they fully understand the risks and seek independent financial advice.

2. Investors should note that the market price of the Bonds can rise and fall during the life of the investment and the price of the Bonds could fall below the issue price.

3. In the event that St. Modwen Properties PLC defaults, becomes insolvent or goes out of business, investors may lose some or all of their investment.

This announcement is not a prospectus for the purposes of EU Directive 2003/71/EC, as amended, and/or Part VI of the Financial Services and Markets Act 2000. Investors should not subscribe for any bonds referred to in this announcement except on the basis of information contained in the prospectus relating to the issue of the bonds. Full information on St. Modwen Properties PLC and any offer of bonds will only be available in the prospectus and (if relevant) a sizing announcement published in respect of such bonds. Investors will be able to obtain copies of the prospectus and the sizing announcement on St. Modwen's website: www.stmodwen.co.uk/bonds.

The offering and the distribution of this announcement and other information in connection with any offer in certain jurisdictions may be restricted by law and persons into whose possession this announcement or any document or other information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.

This announcement does not constitute or form part of any offer or invitation to sell, or any solicitation of any offer to purchase. Any purchase of bonds pursuant to any offer should only be made on the basis of the information contained in the relevant prospectus, available as described above.

The Bonds will not be registered under the US Securities Act of 1933 (the "Securities Act") and, subject to certain exceptions, may not be offered, sold or delivered within the United States. Any bonds will be offered and sold outside of the United States in reliance on Regulation S promulgated under the Securities Act.