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Serviced Office Group plc

Appointment as Property Manager to six business centres  

Serviced Office Group ('SVO' or 'the Group') has substantially expanded its portfolio of business centres by taking over the management of six sites, totaling 171,700 sq ft., from Premier Office Holdings ('Premier'), a privately-owned property investor.

The six acquired centres are located in Reading, Edinburgh, Bristol, Aylesbury, Birmingham and Wolverhampton and comprise a total of 1,915 workstations. This acquisition, which is in the form of a ten-year management agreement, doubles the number of workstations in the SVO portfolio to 3,806, located in a total of 18 business centres.

The management of Premier and Serviced Office Group expect the portfolio to grow to 20.  Under the terms of this deal, SVO is being paid a minimum management fee in the year commencing on 1 April of £180,000 (£30,000 per site), rising to a minimum of £300,000 (£50,000 per site) in the second year. In addition, SVO will receive incentive payments for increased profitability levels within the acquired units.  

Prior to this acquisition, SVO owned or managed a total of 12 business centres, extending to 182,705 sq. ft and providing a total of 1,901 workstations.

Michael Kingshott, Serviced Office Group Chairman, comments:

'At this time of acute difficulty in the commercial property sector, we believe that management agreements such as the one we have signed with Premier are the ideal way to significantly expand our portfolio of business centres without tying up capital and taking on the associated risk of any further fall in property values. Further, with the skills within the Company we are able to expand our number of business centres at minimal additional cost and still remain confident of increasing existing occupancy levels'

                    

                                

6 April 2009

ENQUIRIES:

Serviced Office Group Plc                                                                Tel: 020 7583 8833

Michael Kingshott, Chairman

Stephen Clague, Finance Director

Evolution Securities                                                                        Tel: 020 7071 4300

Bobbie Hilliam

College Hill                                                                                       Tel: 020 7457 2020

Gareth David

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