St Modwen Properties PLC £13.2m Disposal

St Modwen Properties PLC, the regeneration specialist, is pleased to announce today two significant recent transactions. The disposal of the Castle Walk Shopping Centre in Newcastle-under-Lyme has been a significant contributor to St Modwen’s development profits included in its interim results announced today, whilst the joint venture agreement to redevelop the 90-acre former Lister Petter site in Dursley, Gloucestershire, as an urban village, marks a significant addition to the Company’s hopper of future opportunities which now stands at its highest ever level.

Second phase of Castle Walk shopping scheme sold for £13.2m

The second phase of Castle Walk, Newcastle-under-Lyme, one of the most successful regenerated shopping schemes in the Midlands undertaken by St Modwen Developments Ltd, the development subsidiary of St Modwen Properties PLC, has been sold for £13.2 million.

Atmore Group, who through one of its associate companies last year acquired the investment of the first 5,992 sq m (64,500 sq ft) phase, has acquired the 5,295 sq m (57,000 sq ft) second phase which completes the scheme. The sale price represented an initial yield of 7.1 per cent.

The proceeds of the sale will initially be used to pay down St Modwen’s debt prior to reinvestment in future development opportunities.

Joint venture agreement to develop 90-acre Urban Village

St Modwen Developments Ltd has signed a joint venture agreement with South West of England Regional Development Agency to redevelop the 90-acre former Lister Petter site in Dursley, Gloucestershire, as an urban village.

The completion of the Development Agreement follows the South West of England Regional Development Agency’s acquisition of the site two years ago and their preparation of an initial base masterplan to provide an exemplar Urban Village Scheme for the South West. The site was then publicly marketed in the spring of 2002 when St Modwen was chosen as the preferred developer.

Since that time St Modwen and SWERDA have jointly prepared a second, more detailed masterplan which builds upon the aims and aspirations of the first to deliver 600 dwellings including live/work units and areas of high density housing that will provide a distinctly urban feel, together with some 250,000sq ft of commercial space including the relocation of the existing firms on site and Lister Petter’s remaining operations. Lengthy discussions have been held with the Planning Authority and an initial planning application will be submitted this autumn.

Anthony Glossop, Deputy Chairman & Chief Executive St Modwen, said:

“Today’s two announcements are consistent with our overall strategy, of disposing at a profit our successful developments where we have fulfilled our aims, and of adding further to our hopper of future opportunities.

“Much talk has surrounded urban villages but very little action, so we are particularly pleased to be working with SWERDA on such a high profile scheme as Dursley which draws strongly on our brownfield regeneration skills.”

For further information please contact:

St. Modwen Properties PLC www.stmodwen.co.uk

Anthony Glossop, Deputy Chairman & Chief Executive

Bill Oliver, Managing Director

Tim Haywood, Finance Director

0121 456 2800

Weber Shandwick Square Mile

Reg Hoare / Katie Hunt

020 7067 0700