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Benchmark Group PLC (BMK)

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Friday 25 February, 2000

Benchmark Group PLC

Interim Results - 6 Months to 31 December 1999

Benchmark Group PLC
25 February 2000

                                 
                       INTERIM ANNOUNCEMENT
             For the Six Months Ended 31 December 1999

Benchmark Group PLC, ('Benchmark'), the specialist central  London
property  investment  and development company,  announces  interim
results  for the six months ended 31 December 1999 - a  period  of
further progress for the Group.

Financial Highlights

* Net rental income of £9.7m (1998 : £10.5m)
* Profit before tax up 25% to £10.0m (1998: £8.0m)
* Earnings per share up 21.4% to 6.8p (1998: 5.6p)
* Net  asset  value  per share (based on interim  valuation)  rose
  10.5% to 299.0p (270.5p at 30 June 1999)
* 6.2%  uplift  on independent revaluation of investment  property
  portfolio as at 31 December 1999
* Net gearing of 61% as at 31 December 1999 (1998: 52.5%)
* Interim  dividend  increased by 5.7%  to  1.85p  net  per  share
  (1998: 1.75p)

Property Highlights

* £102m  of  properties acquired in the West End of London  during
  the  period.  These include Buchanan House in St James's and the
  Golden Square Estate in Soho.

* During   the   period,  property  disposals   totalling   £92.9m
  (including  sales at The Panoramic but excluding the  Kensington
  High  Street joint venture sale) were realised at a  net  profit
  of  £4.8m  giving a surplus of 5.5% over book value,  or  £13.4m
  over historic cost.

* Disposal  of  the  leasehold interest in 99/121 Kensington  High
  Street  and  1  Derry Street and the freehold of  25  Kensington
  Square,  W8  to a joint venture with Deutsche Bank AG  in  which
  Benchmark holds a 50.1% interest.  The £83m sale resulted  in  a
  net  profit  over book value of £1.9m, or £12.9m  over  historic
  cost on the 49.9% part disposal.

* Principal residential development, The Panoramic, Pimlico,  SW1,
  where only one of 90 apartments remains to be sold.

* Selected  by  The  Crown Estate to acquire and  develop  Novello
  House  on  Wardour Street in Soho, to provide 70,000  sq  ft  of
  offices and 7,500 sq ft of other space.

* 59,000 sq ft of offices at Stirling Square, Carlton Gardens,  St
  James's leased, of which KKR has taken 23,000 sq ft in total  on
  the  fourth and fifth floors at a rent of £65 per sq ft and  BAE
  Systems  has leased 36,000 sq ft at an overall rental equivalent
  of  £55  per sq ft.  36,000 sq ft of offices remain to  be  let.
  Of  the six residential units, contracts exchanged for the  sale
  of two at an average price in excess of £1,100 per sq ft.

* 33  Glasshouse  Street, W1, 25,000 sq ft  let  to  tenants  Sony
  Music,  NewMedia  SPARK and Ukinvest.com  at  rental  levels  of
  around  £38  per  sq ft, with lease terms of between  10  to  15
  years.

* Acquisition  for  £38m of Buchanan House, 3 St  James's  Square,
  SW1, 52,000 sq ft of offices let on an overriding lease with 14-
  years  unexpired to Diageo plc who are no longer in  occupation;
  sub-let to a number of tenants.

* Acquisition  of  the  Golden  Square  Estate,  W1,  for   £22.5m
  comprising 65,000 sq ft of net commercial accommodation.

* As   a   result  of  the  acquisition  by  Quintain  Estates   &
  Development  PLC  of  the entire share capital  in  Chesterfield
  PLC,  a  portfolio  of  West End properties  was  acquired  from
  Quintain,  some  of  which  subsequently  have  been   sold   to
  Shaftesbury PLC, achieving an attractive net profit.

* Independent   interim   revaluation   of   investment   property
  portfolio.

Tan  Sri  Quek  Leng Chan, Chairman of Benchmark said:  '2000  has
begun  against the background of a strong London property  market.
We  will  continue actively to lease our vacant property, buy  and
sell properties and seek further new opportunities.  Prospects for
the Company remain favourable.'

Nigel   Kempner,  Chief  Executive  of  Benchmark  said:   'Values
continue  to  increase  in  the West End.   Our  developments  are
leasing  up  well and there are plenty of continuing opportunities
within our own portfolio and from new situations.'


For further information contact:

Nigel Kempner                     Jeremy Carey/Karen Roberts
Chief Executive                   Tavistock Communications
Benchmark Group PLC               Tel: 0171 600 2888
Tel: 0171 287 6881                




Chairman's Statement
                                 
I  am pleased to report that Benchmark Group PLC has continued its
good  progress.   During the first half of the  current  financial
year,  against  the background of the continued  strength  in  all
property  sectors in the West End of London where 89% by value  of
our   investment  property  portfolio  is  located  the  Company's
development  programme and its investment property portfolio  have
performed well.


NET ASSET VALUE
In  line  with  best practice, and a growing trend in  the  quoted
property  sector, our freehold and leasehold investment properties
were  revalued  as  at 31 December 1999 by External  Valuers,  DTZ
Debenham  Tie Leung Limited, Chartered Surveyors.  The revaluation
showed a net increase of £31.6m representing a 6.2% uplift on  the
investment  properties  still held  at  31  December  1999.   This
excludes  The  Panoramic, 15 Grosvenor Street and the  residential
element  of  Stirling Square.  The commercial element of  Stirling
Square was revalued as an investment property for the first time.

Consequently,  the net asset value per share at 31  December  1999
rose  to  299.0p (1998: 247.3p) compared with 270.5p  at  30  June
1999, which represents an increase of 10.5%.


RESULTS
Pre-tax profits for the six months to 31 December 1999 were £10.0m
(1998: £8.0m) representing an increase of 25% over the same period
last year and reflecting a £6.6m profit on property sales achieved
during  the  period.  Earnings per share were  6.8p  (1998:  5.6p)
representing an increase of 21.4% over the same period last year.

Net  rental  income for the period reduced from £10.5m  to  £9.7m,
principally  due to a reduction in income resulting from  the  net
effect of acquisitions and disposals and letting fees incurred  in
respect of completed developments.

The  net rental income on an annualised basis at the date of  this
report  is now £28.7m per annum compared with £23.4m per annum  at
17 September 1999, the date of my last statement.
                                 
Our  net  borrowings at 31 December 1999 were £220.9m representing
net gearing of 61%, compared with 54% at 30 June 1999.


DIVIDEND
An  interim dividend of 1.85p (1998: 1.75p) has been declared  and
will  be paid on 30 March 2000 to shareholders on the register  at
10  March  2000.   This represents an increase of  5.7%  over  the
interim dividend last year.


ACQUISITIONS AND DISPOSALS
During  the six-month period we spent £102m on the acquisition  of
properties in the West End of London.

During the same period, we have again been active in improving our
properties  and  making  disposals from our  portfolio,  realising
total  sales  of £92.9m at a net profit of £4.8m.   This  gives  a
surplus of 5.5% over book value or £13.4m over historic cost.

In  addition,  we  sold  our  long leasehold  interest  in  99/121
Kensington High Street and 1 Derry Street and the freehold  of  25
Kensington Square, W8, to a new company (121 KHS Limited) in which
we  hold a 50.1% interest and Deutsche Bank AG the remainder.  The
properties were sold for £83m and the disposal resulted in  a  net
profit  of £1.9m compared with book value or £12.9m over  historic
cost on the 49.9% part disposal.

                                 
DEVELOPMENT
Our development at Stirling Square, 5 Carlton Gardens in the heart
of  St  James's has now been completed and, of the  95,000  sq  ft
offices  on seven levels, 59,000 sq ft have been let.   The  fifth
floor  comprising  9,000  sq  ft was pre-let  to  Kohlberg  Kravis
Roberts  & Co Ltd ('KKR') in the spring of 1999 at a rent  of  £65
per  sq  ft.   KKR  have  subsequently leased  the  fourth  floor,
comprising  a  further 13,930 sq ft on similar rental  terms.   In
addition, BAE Systems have taken offices totalling 36,000 sq ft on
part  of  the ground floor, and the whole of the lower ground  and
first  floors, at an overall rental equivalent of £55 per  sq  ft.
All the leases are for 20 years with five-yearly upwards only rent
reviews on tenants' full repairing and insuring terms.  36,000  sq
ft   of  offices  remain  to  be  let.   Of  the  six  residential
apartments, contracts have been exchanged for the sale of  two  at
an  average price in excess of £1,100 per sq ft.  There is  strong
interest in all the remaining residential and commercial space  in
the development.

We  are  pleased to announce that, after a selection  process,  we
have  recently been chosen by The Crown Estate to develop  Novello
House, a landmark building on Wardour Street at the heart of Soho,
and  we  are currently documenting the acquisition and development
agreement.   This  will be a development which  will  commence  in
April  2000 to provide 70,000 sq ft of offices and 7,500 sq ft  of
other  space  and  is  an  exciting addition  to  our  development
programme.

At  our development at 33 Glasshouse Street, off Regent Street, we
have  now let the entire 25,000 sq ft of offices at rental  levels
of  around  £38  per sq ft with lease terms of between  10  to  15
years.    The   tenants  are  Sony  Music,  NewMedia   SPARK   and
Ukinvest.com.  This has been a successful development for  us  and
demonstrates the current strength of the Soho office market.

In  August  1999 we acquired the freehold interest  in  a  virtual
island  site on the south side of Golden Square off Regent  Street
for  £22.5m.  Subject to receiving satisfactory planning  consent,
we are shortly to commence a refurbishment to provide 10,000 sq ft
of  new  offices on Lower James Street and a further refurbishment
to  provide  14,000  sq  ft of offices and  retail  space  at  the
junction of Lower James Street and Golden Square.  In the next few
months  we will be submitting a planning application for  a  major
office development on the remainder of the site to comprise 41,000
sq ft of offices and 16,000 sq ft of retail and restaurant space.

Our  holdings in the Motcomb Street area of Belgravia are  getting
ever  closer to becoming a redevelopment scheme, subject to listed
building consent.  We hope to start the improvement works for  the
traffic  environment in May 2000.  The south side  of  the  Halkin
Arcade  is now under our control so that we can provide the  space
required by Waitrose for their Food Hall when the planning  issues
have  been  resolved.  Meanwhile, several new retail tenants  have
come  to the area as a result of our proposals, thus significantly
increasing  the  retail  rental  values.   Our  proposals  to  re-
structure  our leases and extend our ownership with the  Grosvenor
Estate are now being documented by solicitors.

At  our  principal  residential development of  90  units  at  The
Panoramic in Pimlico, we have now only one 3-bedroom apartment  on
the seventeenth floor remaining for sale.


INVESTMENT
In September 1999 we acquired the freehold of Buchanan House, 3 St
James's  Square  comprising 52,000 sq ft  of  offices  let  on  an
overriding lease with 14 years unexpired to Diageo plc, who are no
longer  in  occupation but have sub-let to a  number  of  tenants.
This  provides  an  interesting opportunity for active  management
within the property.

At  our  building at 164 New Bond Street and 11/14 Grafton Street,
in December 1999 we acquired the 52% long leasehold interest, held
by the Prudential Assurance Company, for £13.75m.  We now own 100%
of the long leasehold interest in the entire block held on a lease
from  the City Corporation with 1,926 years unexpired at a nominal
ground  rent.   The  building comprises 22,000 sq  ft  of  office,
retail and residential accommodation.


CORPORATE
During  the  first half of 1999, culminating in  August,  we  were
involved  in  the acquisition by Quintain Estates and  Development
PLC  of the entire share capital in Chesterfield PLC.  We acquired
a  portfolio of properties, a large proportion of which,  together
with a Soho property that we already owned, we sold to Shaftesbury
PLC achieving an attractive net profit.


OUTLOOK
2000  has begun against the background of a strong London property
market.   We will continue actively to lease our vacant  property,
buy  and  sell  properties  and seek  further  new  opportunities.
Prospects for the Company remain favourable.

This  has  been a satisfactory half-year and my thanks go  to  the
executive team for their hard and successful work.



Tan Sri Quek Leng Chan
Chairman

25 February 2000




               Consolidated Profit and Loss Account
                 Six months ended 31 December 1999
                                 
                                  Six months to   Six months to       Year to
                                      31 Dec 99       31 Dec 98     30 Jun 99
                                    (unaudited)     (unaudited)     (audited)
                           Note           £'000           £'000         £'000
                                                                             
GROSS RENTAL INCOME                      11,814          12,300        23,221
Ground rents                              (681)           (673)       (1,361)
Irrecoverable property                                                       
  costs                                 (1,195)           (911)       (1,967)
Amortisation of leasehold                                                    
  properties                              (216)           (195)         (390)
                                          -----           -----         -----
NET RENTAL INCOME                         9,722          10,521        19,503
Net operating loss from                                                      
  serviced offices                        (588)               -             -
Profit on disposal of                                                        
  trading properties          2           2,504           1,074         2,491
Administration expenses                 (1,536)         (1,206)       (3,346)
                                          -----           -----         -----
OPERATING PROFIT                         10,102          10,389        18,648
Profit on disposal of                                                        
investment properties         2           4,140             563         1,603
                                          -----           -----         -----
PROFIT ON ORDINARY ACTIVITIES                                                
  BEFORE INTEREST                        14,242          10,952        20,251
Interest receivable           3             107             218           345
Interest payable and                                                         
  similar charges             4         (4,355)         (3,214)       (5,458)
                                          -----           -----         -----
PROFIT ON ORDINARY ACTIVITIES                                                
  BEFORE TAXATION                         9,994           7,956        15,138
Taxation                      5         (1,840)         (1,161)       (1,974)
                                          -----           -----         -----
PROFIT ON ORDINARY ACTIVITIES                                                
  AFTER TAXATION                          8,154           6,795        13,164
Minority interests                           73               -             -
                                          -----           -----         -----
PROFIT FOR THE FINANCIAL                                                     
  PERIOD                                  8,227           6,795        13,164
Dividends                     6         (2,230)         (2,110)       (4,521)
                                          -----           -----         -----
RETAINED PROFIT FOR THE PERIOD            5,997           4,685         8,643
                                          -----           -----         -----
EARNINGS PER SHARE                                                           
  EXCLUDING NET PROFITS                                                      
   ON DISPOSAL OF TRADING                                                    
   AND INVESTMENT                                                            
    PROPERTIES                7            2.8p            4.6p          8.2p
                                          -----           -----         -----
EARNINGS PER SHARE  - BASIC   7            6.8p            5.6p         10.9p
                - DILUTED     7            6.7p            5.6p         10.9p
                                          -----           -----          ----




                    Consolidated Balance Sheet
                      As at 31 December 1999
                                 
                                          As at           As at         As at
                                      31 Dec 99       31 Dec 98     30 Jun 99
                                    (unaudited)     (unaudited)     (audited)
                           Note           £'000           £'000         £'000
                                                                             
FIXED ASSETS                                                                 
Tangible assets                                                              
Investment and                                                               
  development                                                                
  properties                  8         585,282         432,790       495,821
Other tangible assets                     2,451             187         1,564
Investments - associated                                                     
  company                                 3,048           3,048         3,048
                                          -----           -----         -----
                                        590,781         436,025       500,433
                                          -----           -----         -----
CURRENT ASSETS                                                               
Trading properties                        7,656          28,596         9,321
Debtors                       9          10,443           8,241         8,235
Investments                                 750               -           750
Cash at bank and in hand                  1,977           2,738           282
                                          -----           -----         -----
                                         20,826          39,575        18,588
                                                                             
CREDITORS - AMOUNTS FALLING DUE                                              
  WITHIN ONE YEAR                      (22,914)        (17,936)      (19,267)
                                          -----           -----         -----
NET CURRENT                                                                  
  (LIABILITIES)/ASSETS                  (2,088)          21,639         (679)
                                          -----           -----         -----
TOTAL ASSETS LESS CURRENT                                                    
  LIABILITIES                           588,693         457,664       499,754
                                                                             
CREDITORS - AMOUNTS FALLING DUE                                              
  AFTER MORE THAN ONE YEAR            (173,610)       (110,048)     (123,713)
                                                                             
CONVERTIBLE UNSECURED LOAN                                                   
  STOCK                                (49,237)        (49,172)      (49,210)
                                                                             
PROVISIONS FOR                                                               
LIABILITIES                  10         (3,669)           (357)         (705)
  AND CHARGES
                                          -----           -----         -----
NET ASSETS                              362,177         298,087       326,126
                                          -----           -----         -----
CAPITAL AND RESERVES                                                         
Called up share capital                  60,280          60,280        60,280
Share premium account        11         149,737         149,737       149,737
Revaluation reserve          11          95,781          61,533        83,693
Other reserves               11              51              51            51
Profit and loss account      11          54,573          26,486        32,365
                                          -----           -----         -----
SHAREHOLDERS' FUNDS                     360,422         298,087       326,126
Minority interests                        1,755               -             -
                                          -----           -----         -----
TOTAL CAPITAL EMPLOYED                  362,177         298,087       326,126
                                          -----           -----         -----
NET ASSETS PER SHARE          7          299.0p          247.3p        270.5p




       Group Statement of Total Recognised Gains and Losses
                 Six months ended 31 December 1999
                                 
                                  Six months to   Six months to       Year to
                                      31 Dec 99       31 Dec 98     30 Jun 99
                                    (unaudited)     (unaudited)     (audited)
                                          £'000           £'000         £'000
                                                                             
Profit for the financial period           8,227           6,795        13,164
Share of surplus arising on                                                  
  revaluation of investment                                                  
   properties                            29,812               -        24,081
Revaluation surplus arising                                                  
  from part disposal of                                                      
   investment property                    1,870               -             -
Tax on realisation of                                                        
  revaluation surpluses on                                                   
   investment property disposals        (3,383)               -             -
                                          -----           -----         -----
Total recognised gains and                                                   
losses                                   36,526           6,795        37,245
  for the period
                                          -----           -----         -----





            Note of Historical Cost Profits and Losses
                 Six months ended 31 December 1999

                                  Six months to   Six months to       Year to
                                      31 Dec 99       31 Dec 98     30 Jun 99
                                    (unaudited)     (unaudited)     (audited)
                                          £'000           £'000         £'000
                                                                             
Profit on ordinary activities                                                
  before taxation                         9,994           7,956        15,138
Realisation of property                                                      
  revaluation surpluses in                                                   
   prior periods                         19,594           4,523         6,444
                                          -----           -----         -----
Historical cost profit on                                                    
  ordinary activities                                                        
   before taxation                       29,588          12,479        21,582
                                          -----           -----         -----
Historical cost profit                                                       
  retained after tax and                                                     
   dividends                             25,518           9,208        15,087
                                          -----           -----         -----




        Reconciliation of Movements in Shareholders' Funds
                 Six months ended 31 December 1999

                                  Six months to   Six months to       Year to
                                      31 Dec 99       31 Dec 98     30 Jun 99
                                    (unaudited)     (unaudited)     (audited)
                                          £'000           £'000         £'000
                                                                             
Total recognised gains and                                                   
  losses for the period                  36,526           6,795        37,245
Dividends                               (2,230)         (2,110)       (4,521)
                                          -----           -----         -----
Increase in total capital                                                    
  employed                               34,296           4,685        32,724
Opening shareholders' funds             326,126         293,402       293,402
                                          -----           -----         -----
Closing shareholders' funds             360,422         298,087       326,126
                                          -----           -----         -----




                 Consolidated Cash Flow Statement
                 Six months ended 31 December 1999
                                 
                                  Six months to   Six months to       Year to
                                      31 Dec 99       31 Dec 98     30 Jun 99
                                    (unaudited)     (unaudited)     (audited)
                           Note           £'000           £'000         £'000
                                                                             
OPERATING ACTIVITIES                                                         
Net cash inflow before                                                       
  sales of and additions                                                     
  to trading properties                   8,952           5,250        12,676
Net cash inflow from sales                                                   
  of and additions to                                                        
  trading properties                      4,169          24,032        44,724
                                          -----           -----         -----
NET CASH INFLOW FROM                                                         
  OPERATING ACTIVITIES     12(a)          13,121          29,282        57,400
                                          -----           -----         -----
RETURNS ON INVESTMENTS AND                                                   
  SERVICING OF FINANCE
Interest received                           115             210           361
Interest paid                           (5,681)         (5,922)      (11,480)
                                          -----           -----         -----
NET CASH OUTFLOW FOR RETURNS                                                 
 ON INVESTMENTS AND SERVICING                                                
  OF FINANCE                            (5,566)         (5,712)      (11,119)
                                          -----           -----         -----
TAXATION                                                                     
Corporation tax paid                       (12)           (497)       (4,379)
                                          -----           -----         -----
CAPITAL EXPENDITURE                                                          
Acquisition of investment                                                    
  properties                          (119,164)        (37,588)      (92,498)
Disposals and other capital                                                  
  receipts                               70,019          26,069        46,288
Purchase of other fixed assets          (1,003)             (7)       (1,407)
                                          -----           -----         -----
NET CASH OUTFLOW FOR                                                         
  CAPITAL EXPENDITURE                  (50,148)        (11,526)      (47,617)
                                          -----           -----         -----
EQUITY DIVIDENDS PAID                   (2,411)         (2,230)       (4,340)
                                          -----           -----         -----
CASH (OUTFLOW)/INFLOW                                                        
  BEFORE USE OF LIQUID                                                       
  RESOURCES AND FINANCING              (45,016)           9,317      (10,055)
                                          -----           -----         -----
MANAGEMENT OF LIQUID RESOURCES                                               
Decrease in cash deposit held                                                
  as security                                 -           2,700         2,700
                                          -----           -----         -----
FINANCING                                                                    
Increase/(decrease) in                                                      
  debt                     12(b)         46,711        (10,449)        6,467
                              
                                          -----           -----         -----
INCREASE/(DECREASE) IN                                                       
CASH IN THE PERIOD         12(b)          1,695           1,568         (888) 
                                          -----           -----         -----
                                 
                                 
                                 
                                 
                       Notes to the Accounts
                                 
1    ABRIDGED ACCOUNTS
    The  results for the six months ended 31 December 1999 do  not
    constitute  full  statutory accounts  within  the  meaning  of
    Section  240 of the Companies Act 1985.  The figures  for  the
    year  to  30  June 1999 are based on the audited accounts  for
    that  year which have been reported on, without qualification,
    by  the  auditors and have been delivered to the Registrar  of
    Companies.


2   PROFIT ON DISPOSAL OF TRADING AND INVESTMENT PROPERTIES
    The profit on disposal of trading and investment properties
    for the period ended 31 December 1999 comprises:

                                         Trading      Investment             
                                      properties      properties        Total
                                           £'000           £'000        £'000
                                                                             
Aggregate consideration                   21,500          71,369       92,869
Less:  sales costs                          (39)         (1,391)      (1,430)
                                           -----           -----        -----
Net proceeds                              21,461          69,978       91,439
Less:  historical cost of                                                    
  properties                            (18,957)        (59,119)     (78,076)
                                           -----           -----        -----
Historical cost profit                     2,504          10,859       13,363
Less:  revaluation surpluses                                                 
  in prior periods                             -         (8,582)      (8,582)
                                           -----           -----        -----
                                           2,504           2,277        4,781
                                           -----           -----        -----
Historical cost profit arising                                               
  from partial sale of property                -          12,875       12,875
Less:  revaluation surpluses in                                              
  prior periods                                -        (11,012)     (11,012)
                                           -----           -----        -----
                                               -           1,863        1,863
                                           -----           -----        -----
                                           2,504           4,140        6,644
                                           -----           -----        -----


3    INTEREST RECEIVABLE

                                   Six months to   Six months to      Year to
                                       31 Dec 99       31 Dec 98    30 Jun 99
                                     (unaudited)     (unaudited)    (audited)
                                           £'000           £'000        £'000
                                                                             
Loan notes - related company                  63              42           84
Bank deposits                                 12              34           88
Deposits held as security against                                            
  loans                                        -              77           77
Other                                         32              65           96
                                           -----           -----        -----
                                             107             218          345
                                           -----           -----        -----


4    INTEREST PAYABLE AND SIMILAR CHARGES

                                   Six months to   Six months to      Year to
                                       31 Dec 99       31 Dec 98    30 Jun 99
                                     (unaudited)     (unaudited)    (audited)
                                           £'000           £'000        £'000
                                                                             
Amounts payable on bank loans and                                            
  overdrafts:
Not wholly repayable within                                                  
  five years                               2,116           3,741        2,039
Wholly repayable within                                                      
  five years                               3,641           1,016        6,950
5.75% Convertible Unsecured                                                  
  Loan Stock 2013                          1,479           1,410        2,836
Less:  interest capitalised              (2,881)         (2,953)      (6,367)
                                           -----           -----        -----
                                           4,355           3,214        5,458
                                           -----           -----        -----


5   TAXATION
    The effective rate of taxation of 18% reflects the benefits of
    brought forward losses and capital allowances claimed.


6   DIVIDENDS
    The interim dividend of 1.85p (1998 interim: 1.75p) net per
    share is payable on 30 March 2000 to shareholders on the
    register at 10 March 2000.  Dividends are calculated on
    120,559,542 (1998 interim: 120,559,542) Ordinary shares in
    issue.


7   EARNINGS/NET ASSETS PER SHARE
    The weighted average number of shares in issue during the
    period was 120,559,542 (1998: 120,559,542) and the earnings
    attributable to Ordinary shares was £8,227,000 (1998:
    £6,795,000).  The earnings on ordinary activities excluding
    net profits on disposal of trading and investment properties
    comprises net rental income less administration expenses less
    net interest payable and attributable taxation and amounted to
    £3,332,000 (1998: £5,491,000).  The number of shares in issue
    at 31 December 1999 was 120,559,542 (1998:  120,559,542) and
    the net assets attributable to shareholders at 31 December
    1999 was £360,422,000 (1998:  £298,087,000).

    Diluted earnings per share have been calculated for all
    periods adopting the method set out in Financial Reporting
    Standard 14 - Earnings per Share.  In calculating diluted
    earnings per share, earnings have been adjusted to £9,242,000
    to add back the post-tax interest cost of the 5.75%
    Convertible Unsecured Loan Stock 2013 ('CULS') and the
    weighted average number of shares has been increased to
    137,041,041 to take into account conversion of the CULS and
    the exercise of share options.


8   FIXED ASSETS - TANGIBLE ASSETS
    The freehold and leasehold investment properties are stated on
    the basis of their open market values as at 31 December 1999.
    The valuation was carried out by DTZ Debenham Tie Leung
    Limited, Chartered Surveyors ('DTZ'), acting as External
    Valuers and in accordance with the Appraisal and Valuation
    Manual of the Royal Institution of Chartered Surveyors.  The
    open market values are contained in the DTZ report dated 14
    February 2000.  Additions and disposals are recognised upon
    unconditional exchange of contracts provided that completion
    takes place within a 30 day period thereafter.
    
    
9    DEBTORS
    Included within debtors at 31 December 1999 and 1998 is an
    amount of £1,650,000 relating to deferred consideration
    secured by a bank guarantee.


10  PROVISIONS FOR LIABILITIES AND CHARGES
    Provisions for liabilities and charges comprise deferred tax
    in respect of short term timing differences.


11   RESERVES
                            Share  Revaluation     Other     Profit          
                          premium      reserve  reserves   and loss     Total
                            £'000        £'000     £'000    account     £'000
                                                              £'000
                                                                             
As at 1 July 1999         149,737       83,693        51     32,365   265,846
Share of surplus arising                                                     
  on revaluation of             -       29,812         -          -    29,812
   investment properties
Revaluation surplus                                                          
  arising from part                                                          
   disposal of investment                                                    
   property                     -        1,870         -          -     1,870
Revaluation surpluses                                                        
  realised on investment                                                     
   property disposals           -     (19,594)         -     19,594         -
Tax on realisation of                                                        
  revaluation surpluses                                                      
   on investment property                                                    
   disposals                    -            -         -    (3,383)   (3,383)
Retained profit for the                                                      
  period                        -            -         -      5,997     5,997
                            -----        -----     -----      -----     -----
As at 31 December 1999    149,737       95,781        51     54,573   300,142
                            -----        -----     -----      -----     -----


12   NOTES TO THE CONSOLIDATED CASHFLOW STATEMENT

(a)  Reconciliation of operating profit to operating cash flows
                                Six months to    Six months to       Year to
                                    31 Dec 99        31 Dec 98     30 Jun 99
                                  (unaudited)      (unaudited)     (audited)
                                        £'000            £'000         £'000
                                                                            
Operating profit                       10,102           10,392        18,648
Depreciation                              116               17            40
Profit on sale of                                                           
  trading properties                  (2,504)          (1,074)       (2,491)
Amortisation of leasehold                                                   
  properties                              216              195           390
Increase in debtors                   (2,208)          (1,212)       (1,705)
Increase in investments                     -                -         (750)
Increase/(decrease) in                                                      
  creditors                             3,230          (3,068)       (1,456)
                                        -----            -----         -----
Net cash inflow before sales                                                
  of and additions to trading                                               
   properties                           8,952            5,250        12,676
Net cash inflow from sales                                                  
  of and additions to trading                                               
   properties                           4,169           24,032        44,724
                                        -----            -----         -----
Net cash inflow from                                                        
  operating activities                 13,121           29,282        57,400
                                        -----            -----         -----


(b)  Reconciliation of net cash flow to movement in net debt
                                Six months to    Six months to       Year to
                                    31 Dec 99        31 Dec 98     30 Jun 99
                                  (unaudited)      (unaudited)     (audited)
                                        £'000            £'000         £'000
                                                                            
Increase/(decrease) in cash                                                 
  in the period                         1,695            1,568         (888)
Decrease in cash held as                                                    
  security against loans                    -          (2,700)       (2,700)
Cash (inflow)/outflow from                                                  
  (increase)/decrease in debt        (46,711)           10,449       (6,467)
                                        -----            -----         -----
Movement in net debt                 (45,016)            9,317      (10,055)
Net debt at start of period         (175,854)        (165,799)     (165,799)
                                        -----            -----         -----
Net debt at end of period           (220,870)        (156,482)     (175,854)
                                        -----            -----         -----

(c)  Analysis of net debt
                                        As at                          As at
                                    31 Dec 99         Cashflow     30 Jun 99
                                  (unaudited)      (unaudited)     (audited)
                                        £'000            £'000         £'000
                                                                            
Cash at bank and in hand                1,977            1,695           282
Debt due within one year                    -            3,213       (3,213)
Debt due after more than                                                    
  one year                          (222,847)         (49,924)     (172,923)
                                        -----            -----         -----
Net debt                            (220,870)         (45,016)     (175,854)
                                        -----            -----         -----


13   REPORT CIRCULATION
    The interim report will be sent to shareholders by 7 March
    2000 and is available for inspection at the Company's
    Registered Office at 25 Sackville Street, London, W1X 1DA.



                                                                                                                                                                

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