BEP Bourne End Prop

RNS No 7369t
BOURNE END PROPERTIES PLC
1st July 1997 

                       BOURNE END PROPERTIES PLC:
            PROPOSED ACQUISITION OF #30.35m RETAIL PORTFOLIO


Bourne End Properties Plc ("BEP") today announces that it has agreed terms 
for the proposed acquisition of a retail property portfolio for #30.35m 
from Burford Holdings plc ("Burford"). The consideration will be satisfied 
as to #26m in cash, 6.3m ordinary shares in BEP at 42p per share and a 
further #1.7m in cash which is deferred for 12 months.

The portfolio comprises four freehold properties producing a current 
annual rental income of #2.79m against a current estimated rental value, 
on letting of vacant space, of #3.2m a year. At the purchase price the 
portfolio's initial yield is 8.95% net.

The portfolio consists of:

   *  the 300,000 sq ft Victoria Plaza shopping centre in Southend, which 
      generates annual rent of #1.57m from tenants including: C&A, Argos, 
      Virgin, Wilkinsons and Midland Bank;

   *  the 81,500 sq ft Prescott Centre in Merseyside, a covered shopping 
      complex anchored by Somerfield and including JJB Sports, Burtons and 
      Superdrug producing #710,000 of annual rental income; 

   *  two units on the Whitley Road Retail Park, near Newcastle, 
      comprising a total of 40,000 sq ft let to Allied Leisure PLC 
      and generating #317,000 a year in rental income;

   *  19 retail units in Northgate Street and St Aldgate Street in 
      Gloucester producing #195,000 in annual rents. 

Over 80% of current income is secured for more than 10 years.

On completion of the acquisition BEP's annualised gross rental income 
increases to #17.0m and in a full year the new portfolio will contribute 
in excess of #300,000 to profits immediately. This would rise to in excess 
of #750,000 once all the properties are fully income producing. 

As a result of this acquisition, the gross value of BEP's portfolio 
increases to #185.8m. Importantly it increases the company's investment 
in the retail sector to almost two-thirds of the entire portfolio, while 
shopping centres now account for just over a third of BEP's total property 
investments.

Proforma gearing on completion of the acquisition will stand at 
approximately 290%, but this is expected to be reduced over the coming 
months as more sales of non-core properties are completed. Since the 
beginning of the year disposals have already totalled approximately #26m.

David Roberts, Chief Executive of BEP, said: "We are absolutely delighted 
to have been able to purchase a retail portfolio of this quality at a 
sensible yield where there is potential over the medium term to enhance 
the investment both in terms of value and income.

"The acquisition matches our stated objectives of increasing our exposure 
to the retail sector in general and shopping centres in particular, 
especially where we can bring our asset management expertise to bear. 
It is also an earnings enhancing deal."

Nick Leslau, Chief Executive of Burford, commented: "It is part of our 
stated corporate strategy to acquire large properties where our management 
skills can generate greater returns for shareholders than from smaller 
assets. In our view Bourne End is the ideal purchaser for this type of 
portfolio as we believe its management has the ability to create further 
value from this type of investment. We are happy to take part of the 
consideration in Bourne End equity as we regard the shares to be trading 
at an unreasonably large discount."

Burford was represented in the transaction by Franc Warwick.


Contact:  David Roberts, Chief Executive, 
          Bourne End Properties.                 Tel: 0171-409 0000
          Baron Phillips, 
          Baron Phillips Associates.             Tel: 0171-224 1302


END

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