Disposal

Property & Capital Group PLC
20 December 1999


PROPERTY & CAPITAL GROUP PLC ('the Group')

SALE OF PROPERTIES AT SAILMAKERS COURT, FULHAM :  SUBSTANTIAL TRANSACTION

On 17th December 1999 the Group exchanged contracts for the sale of 25 flats
at Sailmakers Court, Fulham to a single purchaser at a price of £8.429
million, payable in cash, with completion on 28 January 2000.  The Group
carries on business in the field of residential property investment.

This is a substantial transaction in terms of the AiM Rules and the following
further information is provided.  The 25 flats have an aggregate (revalued)
book value of £8.527 million; after allowing for estimated costs and other
accounting entries, including the transfer of negative goodwill, the
transaction increases the net asset value of the Group by £555,000.  In
revenue terms, the current annual rental, after direct costs, of £454,000 was
exceeded, by some £40,000 p.a., by interest costs of related borrowings.  The
proceeds of sale will be used to repay £6.88 million of specific borrowing and
a further £750,000 of share shareholders loans, the balance increasing working
capital availability.

Ross MacDonald, Chief Executive, said 'This is attractive residential property
beside the Thames, but we have had the benefit of this year's London price
increases, and, with the converse effect of a lower rental yield on value, it
makes sense to sell.  This is particularly appropriate as the sale effects a
substantial reduction in our gearing at a time when, in addition to our Offer
for Paragon Protected Growth PLC announced on Friday, we have further major
negotiations on hand'.