Acquisition

Braemar Group PLC
03 October 2007



                                                                  3 October 2007



                               Braemar Group plc

                           ('Braemar' or the 'Group')



                  Acquisition of Apartment Management Business





Braemar Group plc ('Braemar' or the 'Group'), the provider of fund and property
management services and corporate finance, is pleased to announce that it has
agreed via its subsidiary, Braemar Investment Management Limited, to acquire the
business and certain related assets of the residential apartment management
division of Main & Main (Developments) Limited, for a cash consideration of
£525,000.  The acquisition will provide:



  • An increase of over 2,000 properties under management
  • An increase in the recurring income of the Group



Background



Main & Main (Developments) Limited is an independent estate agency business
based in the North-West of England.  Its apartment management division has grown
rapidly in recent years and is now the managing agent for approximately 110
blocks of apartments, totalling over 2,000 individual units, on behalf of the
management companies and tenants.  It levies and collects annual service charges
and is responsible for arranging the maintenance of all common parts, for which
it receives a fee, payable by each management company by monthly standing order.
  The division is also responsible, in many instances, for arranging the
insurance of each building and receives a commission from the broker that places
the business.  The unaudited management accounts of the division for the year
ended 31 March 2007 show a profit of £55,000.



Acquisition structure



The business and assets of the apartment management division are being acquired
for £525,000, to be satisfied in cash on completion, which is expected to take
place by
31 October 2007.  The assets being acquired comprise the office equipment and
relationships with management companies and tenants.  The division employs 9
staff, all of whom will transfer to Braemar and relocate to Braemar's offices in
Hale, Cheshire.  The division will be acquired by Braemar's wholly owned
subsidiary, Braemar Investment Management Limited, which will now be renamed
Braemar Estates (Residential) Limited.



For the avoidance of doubt, Braemar is not acquiring the residential estate
agency of Main & Main (Developments) Limited nor any of its related companies.



Strategic rationale



Braemar's existing block management division was established to act as property
manager to its own in-house residential property funds.  Over the last two
years, it has grown further by winning the mandates from a number of external
freeholders.  The acquisition of the apartment management division of Main &
Main offers the opportunity to increase the number of properties under
management to over 2,500 and will, the directors believe, provide a firm
platform for further organic growth.  The increase in recurring income for the
Group should provide shareholders with more stable cash-flows and an important
counter-cyclical element to the business, reducing the Group's exposure to the
ups and downs of residential property investment sentiment.



Braemar will provide the enlarged Braemar Estates (Residential) Limited with the
capital to expand and additional access to house-builders and freeholders via
its recently acquired subsidiary, Armchair Property Investor Limited. The
Group's recent investment in systems, particularly high volume property
management software, can accelerate the synergies attributable to this
acquisition and will create additional capacity within the division.



Following completion of the acquisition, the Group will be a significant force
in apartment management in the north of England, and its activities in
Berkshire, Kent and Yorkshire continue to grow organically.



The acquisition consolidates the Group's position in the residential property
structured product arena and enhances its quality and depth of services to
residential property investors.



For further information please contact:-

Martin Robinson, Chairman, Braemar Group plc                  0161 929 4969
Marc Duschenes, Chief Executive, Braemar Group plc            0161 929 4969
Alex Clarkson/Nick Cowles, Zeus Capital                       0161 831 1512





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