Half-yearly Report

28 September 2011

                           GSC Property Holdings plc                           

               Interim results for the 6 months to 30 June 2011                

Highlights:

  * Profit before tax on ordinary activities rose to £336,181 (2010: loss £185,572)
   
  * Rental income remained steady at £3,581,625 (2010: £3,644,552)
   
  * Operating profit before property disposals little changed at £2,883,169
    (2010: £2,932,432)
   
Mark Rubin, Chief Executive commented:

"GSC is financially sound with a management team well placed to react quickly
when the right opportunities arise. We remain confident that as market
conditions improve the company will be well placed to generate enhanced returns
for shareholders".

For further information please contact:

Mark Rubin, Chief Executive 01702 293 300

Jonathan Williams, Bishop Fleming (Corporate Adviser) 0117 910 0250

Anthony Spiro, Spiro Financial (Press and Investor Relations) 020 8336 6196

                     ------------------------------------                      

GSC Property Holdings specialises in commercial property investment in the UK.
The company's strategy is to spread risk through building a diverse portfolio
to minimise exposure to any single end use or geographical area. Our objective
is to add maximum value for shareholders.

                     ------------------------------------                      

CHAIRMAN'S STATEMENT FOR THE CONSOLIDATED UNAUDITED GROUP RESULTS FOR THE HALF 
                            YEAR ENDED 30 JUNE 2011                            

Trading in the six months to 30 June 2011 continues to be at a similar level to
that in the same period in the past two years. While this may seem unexciting
it is very steady and satisfactory, which is an encouraging and reassuring
performance considering the difficult markets in which we operate. The property
investment market shows few signs of sustained recovery, reflecting the low
level of activity in the economy as a whole. Companies and investors have cash
to spend but are reluctant to take the risk in these uncertain times.

Operating profit at £2,883,169 was little changed from last year's level of 
£2,932,432. This was achieved on rental income of £3,581,625 compared with 
£3,644,552 in the equivalent period last year. Earnings per share were 3.21
pence (2010: loss 1.77 pence).

In my statement of 10 June 2011 with the results for the year to 31 December
2010 I commented that the Board continued to adopt a cautious position and in
view of the general market uncertainty it was prudent to conserve cash. The
Board was also considering paying an annual dividend to shareholders in the
future, which in view of the administration costs was more appropriate for a
company of our size. As conditions have not improved the Board is implementing
that policy and accordingly will not declare a dividend for the period ended 30
June 2011 (2010: 1.5 pence per share). The Board will keep this annual dividend
policy under review should market conditions improve.

There were no changes to the Company's property portfolio during the period.
Although this is disappointing for an investment company it does demonstrate
the quality of GSC's existing estate and management's patient and disciplined
approach, rejecting opportunities which do not meet the appropriate financial
criteria. There is no benefit in transactions which do not offer genuine
opportunities to enhance shareholder value. Management will continue to scour
the market for the right deals but will not be drawn into activity for the
wrong reasons.

The number of vacant properties across the Company's estate remains at a low
level and similar to last year, while bad debts are minimal.

The outlook is difficult to determine as market uncertainty, driven by forces
outside our control, continues. GSC is financially sound with a management team
well placed to react quickly when the right opportunities arise. We remain
confident that as market conditions improve the company will be well placed to
generate enhanced returns for shareholders.

Alan Gershlick
Chairman
28 September 2011


CONSOLIDATED PROFIT AND LOSS ACCOUNT
For the half year ended 30 June 2011

                            note    6 months to   6 months to  12 months to 
                                    30 Jun 2011   30 Jun 2010   31 Dec 2010 
                                    (unaudited)   (unaudited)    (audited)  
                                                                            
                                         £             £             £      
                                                                            
Turnover                      2       3,581,625     3,644,552     7,729,174    
                                   ------------- ------------- -------------
                                                                            
Gross profit                          3,539,225     3,601,152     7,575,659    
                                                                            
Administrative and                     (656,056)     (668,720)   (1,978,700)  
distribution expenses                                                       
                                                                            
Adjustment to value of                      -             -       2,000,000    
property held for resale                                                    
                                   ------------- ------------- -------------
                                                                            
Operating profit                       2,883,169     2,932,432    7,596,959    
                                                                            
Net loss on sale of                         -         (675,000)    (675,000)    
Investment Property                                                         
                                   ------------- ------------- -------------
                                                                            
Profit before interest                 2,883,169     2,257,432     6,921,959    
Interest payable (net)                (2,546,988)   (2,443,004)   (4,944,629)  
                                   ------------- ------------- -------------
                                                                            
Profit / (Loss) on ordinary              336,181      (185,572)    1,977,330    
 activities before tax                                                                         
                                                                            
Tax on profit on ordinary     3             -             -          (17,406)     
activities                                                                  
                                   ------------- ------------- -------------
Profit / (Loss) for the                  336,181      (185,572)    1,959,924    
period                                                                      
                                   ============= ============= =============      
                                                                            
Earnings per ordinary         4             3.21        (1.77)        (12.48)      
share (p)                                                                   

Statement of total realised gains and losses

                                    6 months to  6 months to   12 months to 
                                    30 Jun 2011  30 Jun 2010    31 Dec 2010  
                                    (unaudited)  (unaudited)     (audited)   
                                          £             £            £             
                                                                            
Profit / (Loss) for the                 336,181       (185,572)   1,959,924     
financial period                                                            
                                                                            
Unrealised deficit on                       -             -        (100,000)     
revaluation of tangible                                                     
fixed assets                                                                
                                                                            
Unrealised (deficit) on                     -             -      (3,166,000)   
revaluation of property                                                     
                                    ------------- ------------- -------------
Total recognised gains and              336,181       (185,572)  (1,306,076)   
losses for the period                                                       
                                    ============= ============= ============= 

CONSOLIDATED BALANCE SHEET
At 30 June 2011

                                   Unaudited       Unaudited      31 December  
                                     as at           as at           2010  
                                 30 June 2011    30 June 2010      (audited)      
                          Note          £               £               £              
                                                                               
Fixed Assets                                                                   
Intangible assets                    237,808         255,426         246,616
Tangible assets                    3,977,985       4,181,997       4,026,164
Investment properties     5       79,805,000      82,971,001      79,805,000
                                 ------------   -------------   ------------
                                  84,020,793      87,408,424      84,077,780
                                 ============   =============   ============ 
                                                                               
Current assets                                                                 
Stock                                 11,163          14,641           5,676
Asset held for sale               22,000,000      20,000,000      22,000,000
Debtors                            1,282,320         936,838       1,220,070
Other short-term                         200             200             200
investments                                                                    
Cash at bank and in hand           1,059,561       1,182,381         880,505
                                 ------------   -------------   ------------
                                  24,353,244      22,134,060      24,106,451
                                 ------------   -------------   ------------
                                                                               
Creditors: amounts                (7,435,354)     (7,222,277)     (6,992,752)
falling due within one                                                         
year                                                                           
                                 ------------   -------------   ------------
Net current assets                 16,917,890      14,911,783     17,113,699
                                 ------------   -------------   ------------
                                                                               
Total assets less current         100,938,683     102,320,207    101,191,479
liabilities                                                                    
                                                                               
Creditors: amounts                (83,716,014)    (84,155,509)   (84,304,991)
falling due in more than                                                       
one year                                                                       
                                                                               
Provisions: deferred tax                   -               -              -
                                  ------------  -------------   -------------
Total assets                      17,222,669       18,164,698     16,886,488
                                  ============  =============   =============
                                                                               
Capital and reserves                                                           
Called up share capital              104,680          104,680        104,680
Share premium account              1,414,350        1,414,350      1,414,350
Revaluation reserve                9,690,327       12,956,326      9,690,326
Profit and loss account            6,013,312        3,689,342      5,677,132
                                  ------------  -------------   -------------
Shareholders' funds               17,222,669       18,164,698     16,886,488
                                  ============  =============   =============

NOTES TO THE INTERIM REPORT 2011

 1. BASIS OF PREPARATION
   
The accounting policies used for the audited financial statements at 31
December 2010 have been used in the preparation of this interim report.

The interim report is unaudited and does not comprise full financial
statements. The results for the year to 31 December 2010 are an abridged
summary of the financial statements for that year which have been delivered to
the Registrar of Companies and on which the auditors' report was unqualified.

 2. TURNOVER
   
Turnover represents rental income on the group's investment portfolio and
turnover from hotels, invoiced in the period and is stated net of VAT.

Included within turnover is £464,300 of revenues from hotel operations (2010: £
457,100).

 3. TAX CHARGE
   
No provision has been made for corporation tax for the current half year
because of tax losses being brought forward from last year.

 4. EARNINGS PER SHARE
   
Earnings per share have been calculated to include total earnings attributable
to equity shareholders arising in the period:

                                 6 months      6 months      12 months 
                                to 30 June    to 30 June       to 31   
                                   2011          2010        December  
                                                               2010    
                                                                       
                                     £             £             £          
                                                                       
Total earnings /losses arising      336,181     (185,572)    (1,306,082)
in the period                                                          
                                                                       
Weighted average shares in       10,468,000   10,468,000     10,468,000
issue                                                                  
                                                                       
Total earnings /(loss) per            3.21        (1.77)        (12.48)
share (p)                                                              

 5. INVESTMENTS
   
There were no sales or purchases of properties in the period.

The directors of GSC Property Holdings plc accept responsibility for this
announcement