RNS Number:7067T
Chelsfield PLC
29 December 2003


BINDING FUNDING ARRANGEMENTS WITH CGI IN RESPECT OF WHITE CITY


Chelsfield announces that it has entered into binding agreements with Commerz
Grundbesitz Investmentgesellschaft (CGI) in relation to the construction and
funding of the White City development at Shepherd's Bush in West London.  The
arrangements anticipate Chelsfield and CGI each retaining a 50% interest in the
completed development.  The development itself will be carried out by Chelsfield
which will receive, over the life of the project, #22 million in project
management fees, #18 million of which are to be placed in escrow.

CGI will meet all costs of construction, which are expected to be in the region
of #1.15 billion including fees and accrued interest.  Freeholders, London
Underground and head lessors, Chelsfield, will grant a new lease to CGI as part
of a composite set of new arrangements.  In consideration for the initial
transfer to CGI, Chelsfield will receive in cash #200 million plus reimbursement
of development expenditure incurred by Chelsfield since the commencement of
substantial construction in autumn 2003.  #20 million of the amount receivable
by Chelsfield is to be held in escrow with interest accruing to Chelsfield
during the period of development.

The arrangements include a repurchase obligation upon Chelsfield in respect of a
50% interest in the completed White City development.  Chelsfield has committed
to repurchase it's share of the project for a consideration fixed at #100
million, being one half of the initial transfer consideration for the new lease,
plus 50% of actual development costs as funded by CGI.  Accordingly the total
repurchase consideration is expected to be of the order of #675 million.
Chelsfield's obligation to repurchase is to be secured by a bond of #200
million, plus the #38 million aggregate escrow amounts (in respect of land and
project management fees) referred to above.  Chelsfield's absolute liability in
respect to the undertaking given to repurchase is capped at #238 million.

In addition, Chelsfield and CGI have given completion guarantees to London
Underground as is conventional for a project of the nature of White City
involving major infrastructure works.


Further details

Contact
W N Hugill, Managing Director of Chelsfield
0208 789844


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