• John Laing plc announces the sale of Laing Property for £40.0 million to Kier Developments Limited (“Kier Developments”), some £9.7 million ahead of book value.
• Total property realisations since the sale process started in November 2001 amount to £66.3 million at a premium to book value of £20.7 million before costs.
• John Laing’s asset disposal programme is now complete realising over £120 million.

John Laing plc (“Laing”) today announces the sale of the remainder of its property development business incorporating Laing Property Developments Limited, its subsidiaries and joint ventures together with three additional properties (“Laing Property”) for a total cash consideration of £40.0 million to Kier Developments, a joint venture between Kier Group plc and Bank of Scotland. This is subject to any minor adjustment arising from final completion accounts. Of the total consideration, £4.4 million is conditional on statutory consents, and £1.9 million is deferred and will be paid before the end of 2003.

The proceeds from these property realisations will be applied to reduce group indebtedness.

Laing Property had estimated net assets employed of £ 30.3 million at 31 March 2002 and had loans owing to the Laing Group of companies of £25.0 million, which have been settled on completion as part of the £40.0 million consideration. During 2001 the business now being sold contributed profit before interest and tax of £5.0 million towards the property division’s total profit of £9.7 million. The profit on disposal, including the conditional and deferred consideration, is estimated at £4.5 million after costs.

The assets sold to Kier Developments include Laing’s 50 per cent. interest in Absolute, a joint venture with Bank of Scotland, and a further 16 other properties at varying stages of development. Absolute has a £265 million development programme in the M3/M4 corridor.

Since the intention to sell its property division was announced in November 2001, the total consideration achieved by Laing amounts to £66.3 million. This includes realisations made by the division in the normal course of its business. Prior to today’s sale, Laing had disposed of 28 St James’s Square and its headquarters in Mill Hill and Portland Place in London as well as 10 other properties to individual purchasers for an aggregate consideration of £26.3 million. This brings the total profit before interest and tax on all property realisations up to £15.5 million. Of this, £6.0 million fell in 2001, £5.1 million has been realised in 2002 and £4.4 million remains conditional.

Derrick Ardern, Chairman of the Property Division, commented: “The disposal of Laing Property proved to be highly competitive, attracting over 70 expressions of interest. We are delighted that we have been able to secure a result ahead of expectations with a healthy profit for shareholders.”

Bill Forrester, Chairman, added: “This sale concludes the disposal programme committed to in September 2001. Laing now has two excellent ongoing businesses, Homes and Investments, with good prospects for growth and management’s focus now is ensuring we achieve an appropriate balance between earnings and asset backing for the shares.”

Enquiries:

Bill Forrester, Chairman of John Laing plc 020 8906 5601
Adrian Ewer, Finance Director of John Laing plc 020 8906 5601
Derrick Ardern, Director of John Laing plc 020 8906 5305
Edward Orlebar/Faeth Finnemore of Finsbury Group 020 7251 3801

Jones Lang LaSalle and CMS Cameron McKenna advised Laing. DTZ and Cleary Gottlieb Steen and Hamilton and Denton Wilde Sapte advised Kier Developments Limited.




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