Disposal

RNS Number:8385V
Moorfield Group PLC
14 December 2000



                     MOORFIELD GROUP PLC

               Disposal of Arundel Great Court
                              
                                                            
                                                            
Moorstone  Arundel  Partners L.P., the  partnership  between
Moorfield Group PLC ("Moorfield") and Blackstone Real Estate
Advisers  ("BREA"), have completed the disposal  of  Arundel
Great Court for #138.5 million.

Moorstone Arundel Partners acquired Arundel Great  Court  in
October  1997  for #92.5 million.  Under the  terms  of  the
joint  venture, BREA provided 75 per cent of the equity  and
Moorfield 25 per cent.  The acquisition debt was provided by
Lehman   Brothers  initially  amounting  to  #80.0  million,
increased more recently to #94.0 million, which was provided
by Lehman Brothers and Wurttenbergische Hypothekenbank AG.

Arundel Great Court comprises a complex of five inter linked
office buildings totalling some 316,000 sq ft, surrounding a
central  courtyard,  in a prominent location  just  off  the
Strand  in  Central  London.   Since  acquisition  Moorstone
Arundel  Partners L.P. have ensured Arthur  Andersen's  (UK)
long-term occupation of Arundel Great Court on new  20  year
full  repairing  and insuring institutional leases  on  each
block,  with 5 yearly upwards only, rent reviews.  Moorstone
also  agreed to undertake a redesign of the Strand entrance,
providing an imposing new entrance lobby and atrium  with  a
strong  identity  for Arthur Andersen, and in  addition,  is
currently  undertaking  a  development  to  provide  a  high
quality   three  storey  office  building  in  the   central
courtyard  of the complex which will comprise an  additional
36,000  sq  ft of net lettable accommodation.  The purchaser
will be taking on these responsibilities.

Marc Gilbard, Managing Director of Moorfield Group, said:
"Following a very successful partnership with BREA, we  have
now  jointly  decided to realise our investment  in  Arundel
Great  Court.  Profits from the Limited Partnership will  be
apportioned  to  reflect the level of  equity  contribution,
with  Moorfield,  acting as property  manager,  entitled  to
additional profits calculated over a base internal  rate  of
return".

Enquiries:
Marc Gilbard, Moorfield Group PLC            020 7399 1900
Charlotte Lambkin, Bell Pottinger Financial  020 7353 9203