21 December 2009

RUGBY ESTATES INVESTMENT TRUST Plc

("REIT"/ "COMPANY"/ "GROUP")

LETTING TO LONDON AMBULANCE SERVICE AT DATAPOINT, 

LONDON E16 AND RENT REVIEW COMPLETED AT 123 HIGH STREET, GUILDFORD

Rugby Estates Investment Trust announces that it has completed the letting of Units 1 & 2, Datapoint, Cody Road, London E16 to the London Ambulance Service NHS Trust and also a rent review at 123 High Street, Guildford.

The 15 year lease on the 19,000 sq ft unit at Datapoint to the London Ambulance Service will generate an additional £200,000 of income per annum for the Company, which is in line with the Estimated Rental Value indicated by CBRE in the external valuation commissioned by the Board as at 31 October 2009.

The completion of the letting reduces REIT's void rate by 3.9% to 7.1%, compared to the IPD average void rate of 13% in October 2009.

Datapoint, REIT's third largest asset by capital value, is a modern industrial estate located in Stratford, London which is strategically located in close proximity to the 2012 Olympic Park. The 51,000 sq ft multi-let property comprises eight industrial units and is now fully let.

Owens Garside acted on behalf of the London Ambulance Service NHS Trust and DE J Levy on behalf of Rugby REIT.

REIT has also completed an outstanding review at 123 High Street, Guildford, increasing the annual rent to £139,000. This is a 32% increase on the current passing rent and is line with the Estimated Rental Value indicated by CBRE in its most recent valuation. The property is let to Ecco shoes UK Limited.

Commenting, Philip Kendall, Chairman of REIT, said: "REIT has a diverse and well located portfolio of income producing assets with inherent growth potential and the letting to the London Ambulance Service illustrates the ongoing value that can be extracted from the portfolio. This is an excellent letting to a strong covenant, which will benefit the Company significantly from both increased income and a reduced void rate going forward."

RNS news service provided by Hemscott Group Limited.