ARBUTHNOT BANKING GROUP PLC

Capital/Financing Update • Oct 4, 2013

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RNS Number : 7104P

Arbuthnot Banking Group PLC

04 October 2013

FOR IMMEDIATE RELEASE

4 October 2013

Arbuthnot Banking Group PLC

Sale and Leaseback and intention to declare a special dividend

Arbuthnot Banking Group PLC ("Arbuthnot" or the "Group") is pleased to announce that it has exchanged contracts with GMS BRICKS a discretionary investment company (the "Buyer") for the sale and leaseback of 7-21 Wilson Street, London EC2M 2TD ("Wilson Street"). Arbuthnot expects to complete the sale and leaseback agreement within ten working days.  Arbuthnot acquired the freehold of Wilson Street in August 2012.

Wilson Street had a net book value of £16.5 million as at 31 August 2013.  Under the terms of the sale and leaseback agreement, the cash consideration receivable by Arbuthnot is £26.215 million payable on completion. The Buyer will also provide £5.4 million to be drawn by Arbuthnot to fund a renovation and fit out programme of Category A works.  After providing £3.2 million for the rent payable during the period of refurbishment prior to occupation and £0.7 million of advisor and other costs the net gain is expected to be £5.8 million.

The lease on the Group's current premises at 20 Ropemaker Street, London, EC2Y 9AR, costs £1.7 million per annum and has a break option in June 2015.   The Group has exercised the break option and Wilson Street will become the head office for Arbuthnot Banking Group PLC, the principal location for Arbuthnot Latham & Co., Limited and London offices for Secure Trust Bank PLC.

Arbuthnot will enter into a 16 year lease on Wilson Street, with a break at 11 years and rent reviews after 5, 10 and 15 years. The initial rent is £1.75 million per annum.

The net gain resulting from this transaction will enable the Group to pursue additional growth opportunities that currently exist for both of its banking businesses.

Also, in recognition of the 180 year anniversary celebrated by Arbuthnot Latham and Co., Limited, the Board of Arbuthnot would expect to declare a special dividend of 18 pence per share following the completion of the sale and lease back transaction. A further announcement relating to the special dividend will be made once the completion has taken place.

Enquiries:

Arbuthnot Banking Group                                                                    0207 012 2400

Henry Angest, Chairman and Chief Executive

Andrew Salmon, Group Chief Operating Officer

James Cobb, Group Finance Director

David Marshall, Director of Communications

Canaccord Genuity Ltd (Nominated Advisor)                                       0207 665 4500

Lawrence Guthrie

Sunil Duggal

Numis Securities Ltd (Broker)                                                              0207 260 1000

Chris Wilkinson

Mark Lander

Pelham Bell Pottinger (Financial PR)                                                  0207 861 3917

Ben Woodford

Zoe Pocock

This information is provided by RNS

The company news service from the London Stock Exchange

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