Brixton - General - UK, Brixton Passes Resolution for REIT Conversion

Date: 18 Dec 2006

Brixton plc announces that, at the Extraordinary General Meeting held earlier today, the resolution amending the Company's Articles of Association in connection with REIT conversion, as detailed in the circular sent to shareholders on 22 November 2006, was duly passed.

Following the approval of the resolution the Brixton Group will now elect to convert into a REIT with effect from 1 January 2007 and accordingly a letter of notification is being sent to HM Revenue & Customs.

On entering the REIT regime, UK resident members of the Brixton Group (which comprise approximately 94% by value of Brixton's asset portfolio), will no longer pay UK direct tax on the profits and gains from their qualifying property rental businesses. In addition the deferred tax liability on qualifying properties in the Brixton Group will be eliminated, which as of 30 June 2006 amounted to £166m. A tax entry charge will be payable equal to 2 per cent. of the aggregate market value of the property assets involved in Brixton Group's qualifying property rental business. Based on the market value of the Brixton Group's property assets as at 30 June 2006, the entry tax charge would have been £38.3m.

Two copies of the resolution passed at the EGM have been submitted to the UK Listing Authority and will be available for inspection at the UK Listing Authority's Document Viewing Facility during normal business hours on any weekday (except public holidays).

Terms used in this announcement have the same meaning as in the circular sent to shareholders on 22 November 2006.

Where do I go now?: » View the latest news items » View the news archive » Subscribe to Weekly Construction Newsletter » Submit news