Sale by ING Covent Garden Limited Partnership (UK)

Rugby Estates announces that CGLP, one of the Group's co-investment vehicles has sold the whole of its investment property portfolio to Legal and General Property for £119.5 million, (€133.5 million). CGLP retains its mixed-use retail, office and residential development at St Martins Lane and New Row, which is expected to be completed shortly.

Rugby holds a 6.5% interest in CGLP, for which Rugby Asset Management ("RAM") is Property Adviser. Sales of the St Martins Lane development are expected to take place over the next 18 months. When completed, CGLP will be wound up and the Group expects to realise approximately £2.8 million from its holding in CGLP. The Group's share of the estimated underlying net assets of CGLP as at 31 July 2009 was £1.8 million.

The Group has been adviser to and an investor in CGLP since it was established in 2002 as an investment fund with a planned seven year term. RAM will receive a disposal fee of 0.75% in respect of the transaction under the terms of its management agreement and therefore Group management fee turnover for the current financial year is therefore expected to be approximately £3 million (2008/9: £4.2 million).

Source: Financial Dynamics

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