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St. Modwen Props (SMP)

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Tuesday 24 July, 2007

St. Modwen Props

Elephant & Castle decision

St. Modwen Properties PLC
24 July 2007

St. Modwen Properties plc

Elephant and Castle decision

St. Modwen Properties PLC ('St Modwen') is the UK's leading regeneration

The Board of St Modwen has noted with regret today's decision by the London
Borough of Southwark ('Southwark') to select Lend Lease rather than Key Property
Investments ('KPI') as its preferred development partner for the Elephant and
Castle project.

KPI has strategic landholdings in the project area not least the Elephant &
Castle shopping centre and will therefore naturally be involved in the
progression of the scheme.

Anthony Glossop, Chairman of St Modwen, comments:

'I am obviously disappointed with the decision as our team has worked closely
with Southwark over a period of five years and made an excellent submission.
However, I welcome the fact that a decision has been made because it brings to
an end a long period of uncertainty and enables the project to move forward.

Whilst the regeneration programme will be driven forward by Lend Lease and
Southwark Council, KPI will be seeking to liaise with them at the earliest
possible opportunity, and establishing redevelopment timescales for the shopping
centre will be central to these discussions. Other key stakeholders such as the
traders in the existing centre deserve a clear statement on the timescale of
what lies ahead.

KPI's asset value is not in any way adversely affected by the decision.  Bid
costs have been written off as they were incurred, and the value of KPI's
holdings should benefit as the scheme becomes a reality.'

                                                                    24 July 2007


St. Modwen Properties PLC                        Tel: 0121 222 9400
Anthony Glossop, Chairman
Bill Oliver, Chief Executive

College Hill                                     Tel: 020 7457 2020
Matthew Gregorowski


The 235,000 sq.ft Elephant and Castle shopping centre and 90,000 sq. ft Hannibal
House office building above, became one of the UK's first major town centre
redevelopments when it opened in 1964.

It was acquired by KPI in 2002 and since that time the shopping centre and
offices have been carefully and actively managed. This has resulted in a broad
tenant mix comprising a blend of national and local traders and businesses, all
of whom serve the local community.  This strategy has served to protect rental
income from the asset, whilst preserving the opportunity to utilise its
strategic position in the long-term regeneration of the area.

Tenants at the shopping centre include Tesco, Boots, WH Smith and Woolworths.

KPI also has a land holding on the Walworth Road, within the Elephant & Castle
Regeneration area, currently let to Kwik-Fit.

KPI is a joint venture between St Modwen Properties Plc and Salhia Real Estate
Company K.S.C.  This is a long established joint venture, formed in 1996 and
currently comprises a £350m portfolio of development properties spread across
the UK.

St Modwen is the UK's leading regeneration specialist and is quoted on the UK
stock market.

Salhia is a real estate development and investment company quoted on the Kuwait
stock exchange.  The group has an established reputation for the development and
long-term ownership of major mixed-use projects in Kuwait. Salhia has been
investing in the UK and Germany for over 10 years.

                      This information is provided by RNS
            The company news service from the London Stock Exchange                                

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