Option granted

 
TIDMPROP 
 
9 September 2009 
 
                    Property Recycling Group plc 
 
               ("Property Recycling" or the "Company") 
 
                      Options granted at Brigg 
 
Property Recycling  has  granted  options  over  two  areas  of  land 
extending in total to 41.5 hectares on its 50 hectare site. 
 
The options are for one year with a right to extend into two  further 
two year periods. Accordingly, the  total option period available  to 
the option  holder is  five  years.  An  option  fee of  GBP600,000  is 
payable in  the first  year, including  a sum  of GBP300,000  which  is 
repayable if Property  Recycling Group plc  fails to satisfy  certain 
specific conditions.   During  the  first option  period  the  option 
holder will carry out site due diligence with a view to assessing the 
viability of their proposals. 
 
This arrangement is similar in character to the option agreement with 
IKEA Properties for the Company's Stanton site which did not  proceed 
to sale.  The Board considers that these arrangements provide  useful 
short-term income and the possibility of an improved planning profile 
at the  cost of  the option  holder.   In the  event that  the  whole 
process continues to  completion and both  options are exercised  the 
sale value would  be approximately  GBP8 million.  The Board,  however, 
wishes to emphasise  the only  certain income from  these options  is 
GBP300,000. 
 
 
 
Contacts 
 
Paul Rackham, Chairman 
Property Recycling Group plc 
www.propertyrecycling.co.uk 
01953 717176 
 
Geoff Nash/Rose Herbert 
FinnCap 
Nominated Adviser 
020 7600 1658 
 
Robert Luetchford/John Webb 
Marshall Securities 
Joint Broker 
020 7490 3788 
 
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