Sale & Leaseback agreement

RNS Number:8731T
St. Modwen Properties PLC
06 January 2004

                            St. MODWEN PROPERTIES PLC

               #42.5m Sale and Leaseback arrangement with MG Rover

St Modwen Properties Plc announces that it has entered into a sale and long term
leaseback arrangement of part of MG Rover Group's Longbridge site for #42.5
million. MG Rover Group will invest the funds directly in the car company's
business activities.

4.25m sq ft of buildings on 228 acres of land are included in the transaction.
MG Rover has been granted a lease of up to 35 years over this land at an initial
rent of #3.6m with annual fixed uplifts and on expiry of the lease will have the
option to renew. Throughout the term of the lease MG Rover's operational
activities on the land will not be restricted but provision is made for the
sensible release of surplus land at MG Rover's option.

Kevin Howe, Chief Executive of MG Rover Group said:

"This deal generates cash for our cars business today and allows us to continue
to invest in the car company's many product development activities. It puts to
work one of our assets but in no way restricts the day-to-day running of our
business."

Richard Froggatt, Executive Director of St Modwen Properties Plc said:

"We set up a partnership with MG Rover in 2001 to regenerate land which was
surplus to operational requirements. We are delighted to extend our relationship
with MG Rover to support the ongoing operations. This is a very similar sale and
leaseback transaction to those we have already completed with Goodyear, Corus,
Alstom, Invensys and others.

"The realisation of value locked up in their property assets is being seen by
many companies as an effective way of significantly improving their use of
capital. This is particularly relevant to larger manufacturers which often have
extensive land holdings whose ownership and management is not part of their core
business."

                                    - ends -

For further information please contact:

St Modwen Properties plc                                      www.stmodwen.co.uk
Anthony Glossop, Deputy Chairman and Chief Executive               0121 456 2800
Bill Oliver, Managing Director

Weber Shandwick Square Mile
Kevin Smith / Katie Hunt                                           020 7067 0700

MG Rover Group
Suzanne Bartch, The Maitland Consultancy                           020 7379 5151



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