Raglan Properties - General - Disposal of Raglan Estates

Date: 05 Apr 2000

Raglan announces that the company has exchanged a contract for the sale of Estates to Pinton Investments Limited, a member of the JLF Group.

Raglan will receive approximately £31.14 million as a result of the Disposal comprising cash consideration of approximately £18.84 million, a terminal dividend and will settle the outstanding inter company debt between Raglan and Estates. The Purchaser has paid a deposit to Raglan of £2.145 million.

Estates is a wholly owned subsidiary of Raglan which holds a portfolio of properties as part security for a £70 million 11.25% Debenture 2012.

Raglan's strategy has evolved since the purchase of Estates to focus on the property based leisure sector. The requirement to retain high yielding properties to provide security for the Debenture has been increasingly difficult to fulfil as shortening lease structures and lower yields have proved a hurdle to pursuing this strategy.

The current interest rate enviromnent provides, the Directors believe, an opportune time now to refinance the Group's indebtedness represented by the Debenture Stock. The Disposal is conditional upon the approval of Raglan shareholders.

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