O Twelve Estates Limited

('O Twelve' or the 'Company' or the 'Group')

31 March 2010

DISPOSAL OF THE INTERCHANGE, SWANLEY AT 37% ABOVE VALUATION

O Twelve announces that it completed the sale of The Interchange, a prime industrial estate in Swanley, Kent, on 30 March 2010 to an institutional investor for a net consideration of £24.4 million, reflecting a 6.8% yield.

The sale price achieved is 37% above the asset's most recent valuation of £17.8 million as at 30 September 2009. From the end of September 2009 to the end of February 2010, the IPD Monthly index for industrial property reported a capital value movement of 7%.

O Twelve acquired the 263,913 sq ft, nine unit industrial estate in April 2007. The estate, which is prominently located at the junction of the M25 and M20 motorways, had a number of vacant units when purchased. Since acquisition the Company has comprehensively refurbished the industrial estate, concluded a number of lettings to strong covenants including Dreams, Toyota and Sainsbury's and rebranded it as 'The Interchange, Swanley'.

The net sale proceeds have been applied in reducing the Group's fixed rate borrowings with Nationwide Building Society. The loan principal outstanding has been reduced to £145 million, of which £115 million is at fixed rates and £30 million is at variable rates.

Phillip Rhodes, Chairman of O Twelve, commented:

"When we acquired The Interchange, Swanley, we saw an opportunity to implement an active asset management programme on what was a well located but outdated property. The property is now a prime,well let inner M25 industrial estate, which has benefitted from extensive refurbishment and our ability to bring in strong new tenants. The success of the business plan we have completed for the asset is evidenced in the premium achieved over the most recent valuation and its outperformance against the IPD benchmark.

"This disposal has enabled the Group to make substantial progress in reducing its borrowings under the facility with Nationwide to £140 million by March 2011."

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Notes to Editors

O Twelve was formed to establish a substantial property investment portfolio in the Thames Gateway and the adjacent areas of east London, Essex, South Hertfordshire and North Kent. 

Rugby Asset Management Limited ("RAM"), a subsidiary of Rugby Estates plc, is Property Adviser to O Twelve.

Further information on O Twelve can be found at www.otwelveestates.com