Business Development Update

RNS Number:9001F
Commercial Group Properties PLC
18 October 2007


Commercial Group Properties PLC

18 October 2007

                        Commercial Group Properties PLC

                  ("Commercial Group", "CGP" or "the Company")

                      Business Development Update re Wigan


Commercial Group Properties PLC, the AIM-listed property development company,
announces that it has agreed non-binding Heads of Terms to purchase Westwood
Industrial Park, comprising 55 acres of development land ("the Development
Land") from Wigan Metropolitan Borough Council as outlined in our previous
statement of 29 May 2007. The Development Land is an unoccupied brownfield site
situated in Wigan and there is currently no income derived from this site.

It is intended that the Development Land will be purchased through a new joint
venture partnership "Chinamex Gateway @ Wigan Ltd" with Chinamex, the official
trading platform of the People's Republic of China. The joint venture
partnership is 80% owned by CGP.

The Company is proposing to submit a planning application to Wigan Metropolitan
Borough Council to develop between 900,000 to 1 million square feet of
manufacturing and Research & Development facilities that the Directors believe
could deliver up to 1,000 new jobs in the textile and apparel manufacturing
sector.

In developing this site, the Company is working closely with its partner
Chinamex and the CCCT, the China Chamber of Commerce for import and export of
Textiles, which represents 70% of all Chinese textile manufacturers with over
6300 member companies.

If and when a binding contract is signed, the Company will make a further
announcement in accordance with Rule 12 of the AIM Rules for Companies,
including full details of the transaction.

The agreement of the Heads of Terms is a major milestone in the development of
the relationship between Wigan Metropolitan Borough Council and both CGP and
Chinamex. The development of this site will reestablish Wigan as a major centre
of excellence for the manufacturing of textiles and apparel and as a foundation
for further development.


Ends


For further information, please contact:

Commercial Group Properties PLC
Ken Wills                            [phone]

Beaumont Cornish Limited
Roland Cornish                       [phone]

Square 1 Consulting Limited
David Bick, Mark Longson             [phone]


Notes to Editors:

Chinamex Middle East Investment and Trade Promotion Centre ("Chinamex") led by
Mr. Feng Hao is a multinational company, registered in Dubai with the mission of
implementing trading platforms under the management of the Ministry of Commerce.

Commercial Group Properties PLC, led by Ken Wills is an AIM listed company which
was established to invest in property development and owns three sites in the
South East of England.


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