Allied London Properties Ltd ("Allied"), the successful London-based UK property investment and development company specialising in city-centre development, and regeneration announces today that Capital Holdco Ltd ("Capital"), a company formed by the management of Allied, The Royal Bank of Scotland plc ("RBS") and Delancey, has completed the acquisition of the entire issued share capital of Arrow Properties Ltd ("Arrow"), Allied's holding company.

Arrow was formed by Allied's management, RREEF, and JER Partners ("JER") to acquire Allied when it delisted from the London Stock Exchange in 2000.

Capital is owned by Allied's management, RBS (Equity Finance division) and Delancey. The acquisition of Arrow will be financed by a mix of debt and equity, the debt being provided by RBS.

Allied, winner of several important awards over the last three years, is best known for its highly successful important mixed use city-centre redevelopment projects in Manchester (Spinningfields), Glasgow (Skypark) and London (The Brunswick), has a property development and investment portfolio with a gross value and cost of circa £500 million which, upon completion of its current commercial property developments, will grow to circa £800 million. Allied also owns Pelham Homes, where a potential 5,000 dwellings are being planned in substantial Community Developments in Essex, Kent, Sussex and Norfolk.

Commenting on the acquisition, Michael Ingall, Allied's chief executive said:

"We have been very successful since the privatisation of Allied London and have increased the value of the company significantly with the average equity employed effectively being trebled.

"The financing of the new management buy-out by RBS and Delancey, both highly successful corporate and real estate investors, is testament to the success of the business and in the management team's abilities and established track record, Their support will enable us to capitalise further on the position we have developed in the past five years.

"Whilst future activity of the company will focus on the continued development and completion of our existing projects, we will now be very actively looking to acquire new investment and development opportunities, particularly City centre mixed use projects, to which we will apply our proven redevelopment, development and regeneration skills.

We have a great understanding of the dynamics of mixed use city centre redevelopment and regeneration, the need to work in partnership with local authorities and, above all, how to add and realise value through high quality design and providing wider community benefits. The many awards we have won and the calibre of the tenants that have chosen to occupy our developments all point to the success of our philosophy and the ability to use our vision and skills to create first class environments and high quality well researched and designed buildings in which today's discerning occupier can function. It is no coincidence that some of the country's best corporates, retailers and restaurants have chosen our developments in markets where there is always choice."

Ends

For more information, please contact:

Michael Ingall
Allied London Properties
020 7291 7970

Christopher Joll/ Tim Mccall
MJ2
020 7491 7776 or 07721 330730 / 07753 561862

Notes to Editors:

Allied London Properties is a major UK property company with substantial investment and development projects in the main UK cities including London, Manchester and Glasgow. Founded in 1909, listed on the LSE in 1968, incorporated as a PLC in 1982 and de-listed in 2000 via a management buy-out funded by Deutsche Bank (now RREEF), JER Partners and the management team, the company has since been transformed into an ambitious and visionary real estate developer. It delivers stunning projects based on principles of sustainable development, architectural excellence and efficient and economic deliverability. Working with private and public sector organisations, it produces multi-faceted projects that combine creative vision with commercial rigour. Manchester's 427,350 sq m (4.6 million sq ft) Spinningfields development reflects these principles - offering world-class office and civil buildings, high quality residential, hotels, restaurants, shops and bars, planned around new pedestrianised streets and several new public spaces.

In the last five years Allied has provided new developed real estate solutions to the Royal Bank of Scotland, Guardian Media Group, O2, Cedant, NatWest Bank, Deloittes, Grant Thornton, Halliwells, Department of Constitutional Affairs, Group 4, Barclays Bank, Halifax (HBOS) and HSBC and in the retail and leisure markets, developed stores and restaurants, in many cases in multiple locations, to Wagamama, Yo Sushi, Strada, Giraffe, Bar Ha Ha, Hobbs, French Connection, Zizzi, Waitrose, Giraffe, Space NK and Gap and helped pioneer and support new retail concepts such as Hob.

The Royal Bank of Scotland plc is one of the UK's leading providers of debt and equity finance to the commercial property market. The buy-out was structured and arranged by the Equity Finance division of RBS.

Delancey is an investment advisor with a reputation for consistently delivering significant returns across a wide spectrum of real estate and asset backed opportunities on behalf of its international investor base.