Refinancing and asset management agreement

25 November 2013

Public Service Properties Investments Limited

("PSPI", "the Company" or "the Group")

Debt refinancing and amended

Asset Management Agreement

PSPI (AIM: PSPI), the specialist European real estate investment and financing company, announces that it has agreed terms for the refinancing of a £10.5 million debt facility maturing on 16 December 2013. The facility has been refinanced with Bank of London and The Middle East plc ("BLME"), the existing lender, with a maturity date of 12 April 2016, being the same maturity date as an existing debt facility with BLME. Both facilities are secured against assets and businesses located in the UK and are guaranteed by the Company.

The Group will repay £1.5 million to BLME on 16 December 2013 and refinance £9.0 million, resulting in aggregate borrowings at that date across both BLME facilities of £17.2 million, representing a loan to value of 33 per cent. based on the gross valuation of the secured assets as at 30 June 2013. Although pricing for the refinanced amount will be fixed on 16 December 2013, the BLME debt attracts repayments equivalent to an average interest rate of 5.7 per cent. per annum. The facilities will be amortised at the rate of £1.2 million per annum. The new facility is on substantially similar terms to the existing facility, with the additional covenant that the Group will use half the net proceeds from the sale of non-UK Group assets, if any, during the term of the BLME facilities, to pre-pay borrowings until the level of debt outstanding to BLME is reduced to £10.0 million.

The Company also announces that it has entered into a revised asset management agreement with RP&C International which reduces the management fee to a rate of 0.85 per cent. per annum of net assets, in place of the existing fee of 1.5 per cent. per annum of net assets less 1 per cent. of cash balances. The new fee arrangements are due to commence in February 2014, the termination date of the existing asset management agreement. The new agreement may be terminated by either party giving no less than six months' written notice.

For further information please visit www.pspiltd.com or call: