RNS Number:7462N
St. Modwen Properties PLC
21 July 2003



                           ST. MODWEN PROPERTIES PLC

                                #13.2m Disposal

            Joint venture agreement to develop 92 acre Urban Village

St Modwen Properties PLC, the regeneration specialist, is pleased to announce
today two significant recent transactions. The disposal of the Castle Walk
Shopping Centre in Newcastle-under-Lyme has been a significant contributor to St
Modwen's development profits included in its interim results announced today,
whilst the joint venture agreement to redevelop the 90-acre former Lister Petter
site in Dursley, Gloucestershire, as an urban village, marks a significant
addition to the Company's hopper of future opportunities which now stands at its
highest ever level.


Second phase of Castle Walk shopping scheme sold for #13.2m

The second phase of Castle Walk, Newcastle-under-Lyme, one of the most
successful regenerated shopping schemes in the Midlands undertaken by St Modwen
Developments Ltd, the development subsidiary of St Modwen Properties PLC, has
been sold for #13.2 million.

Atmore Group, who through one of its associate companies last year acquired the
investment of the first 5,992 sq m (64,500 sq ft) phase, has acquired the 5,295
sq m (57,000 sq ft) second phase which completes the scheme. The sale price
represented an initial yield of 7.1 per cent.

The proceeds of the sale will initially be used to pay down St Modwen's debt
prior to reinvestment in future development opportunities.

Joint venture agreement to develop 92 acre Urban Village

St Modwen Developments Ltd has signed a joint venture agreement with South West
of England Regional Development Agency (SWERDA) to redevelop the 92 acre former
Lister Petter site in Dursley, Gloucestershire, as an urban village.

The completion of the joint venture agreement follows SWERDA's acquisition of
the site two years ago. The site was then publicly marketed in the spring of
2002 when St Modwen was chosen as the preferred developer.

St Modwen and SWERDA are now working on a detailed masterplan to deliver a
mixture of more than 500 dwellings together with some 250,000 sq ft of
employment units to retain and encourage jobs in the area. Lengthy discussions
have been held with the Planning Authority and an initial planning application
will be submitted this autumn.

Anthony Glossop, Deputy Chairman & Chief Executive St Modwen, said:

"Today's two announcements are consistent with our overall strategy, of
disposing at a profit our successful developments where we have fulfilled our
aims, and of adding further to our hopper of future opportunities.

"Much talk has surrounded urban villages but very little action, so we are
particularly pleased to be working with SWERDA on such a high profile scheme as
Dursley which draws strongly on our brownfield regeneration skills."

For further information please contact:

St. Modwen Properties PLC                                   www.stmodwen.co.uk
Anthony Glossop, Deputy Chairman & Chief Executive               0121 456 2800
Bill Oliver, Managing Director
Tim Haywood, Finance Director


Weber Shandwick Square Mile
Reg Hoare                                                        020 7067 0700


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