steady news flow suggests further upwards movement in their sp, nav 250p dyor.

GBP12.3m disposal of investment asset in Bristol

Development Securities sells Colston Tower in Bristol for £12.3 million

Development Securities today announces that it has sold Colston Tower, an 89,000 sq. ft. office building located in the centre of Bristol, to Resolution Property for £12.3 million, equivalent to an exit yield of 8.25%. The sale of this investment asset will realise a profit of £2.0 million for the Company in line with expectations.

Development Securities acquired Colston Tower in a 75:25 joint venture with Ellandi in 2011 for £7.6 million at a 10.08% initial yield. Since acquisition, the joint venture partners have invested a further £1.9 million on refurbishments and improvements within the building. These improvements have enabled headline rental levels to increase from £9.50 psf to £14.50 psf over the period of ownership and 90% of tenants with lease expiries or breaks have renewed.

Matthew Weiner, Executive Director, Development Securities said: "We have added significant value to Colston Tower during our ownership, improving the quality of the building and thus increasing rental values and improving occupancy levels. The profitable sale of this asset will allow us to recycle capital into further investment opportunities where we see strong potential to generate value."

Mark Robinson, Investment Director, Ellandi added: "We have executed and then exceeded our business plan for this investment showing that good asset management principles can be applied across different sectors to achieve outstanding returns."

Residential funding secured at 399 Edgware Road

Residential joint venture at Telegraph Works

Development Securities today announces that its wholly owned subsidiary, Cathedral Group (Cathedral) has signed a joint venture agreement with Weston Homes to undertake a residential-led regeneration development at the Telegraph Works site on the Greenwich Peninsula in London.

Under the terms of the transaction, Weston Homes will pay an initial £19.1 million for the majority of the land on which it will construct 256 apartments and 16 townhouses. This initial disposal realises profits of circa £9.0 million to Development Securities with further profits to be generated upon disposal of the completed townhouses.

GBP19.2m acquisition of Newcastle retail scheme

Development Securities completes recycling of investment portfolio with acquisition of 185,000 sq. ft. convenience retail investment asset in Newcastle

Development Securities today announces that it has acquired the non-foodstore element of The Killingworth Centre, a convenience retail shopping centre near Newcastle from Wm Morrison Supermarkets plc for £19.2 million at an 8.27% net initial yield.

Completed in 2000, The Killingworth Centre is the principal retail destination within Killingworth, a suburban commuter town 5 miles from Newcastle City Centre. The covered shopping centre is the principal retail and leisure destination for the local community, comprising a 73,000 sq. ft. Morrisons foodstore, a 70,000 sq. ft. Matalan and 28 further retail units totalling 106,000 sq. ft. which are let to a range of national and local operators including Poundworld, Wilkinson, Card Factory and Boots. The Morrisons foodstore will remain outside of Development Securities' ownership. The shopping centre is currently fully occupied with a weighted average unexpired lease term of 5.1 years and offers a number of asset management opportunities.

Trading statement and special dividend

· Business on track to hit management expectations for the full year
· Special dividend of £10.0 million (8.0 pence per share) to be paid in addition to the final year dividend
· As separately announced today, Michael Marx to stand down as CEO. Matthew Weiner to be appointed as CEO and Richard Upton to be appointed as Deputy CEO.

Preliminary Results

Development Securities today reports a step change in performance with a record level profit before tax and a record level of development and trading gains realised during the year

Financial highlights
· Headline profit before tax increased by 133% to £45.4 million* (2014: £19.5 million)
· Continued NAV growth - EPRA NAV per share increased by 8.4% to 284p (2014: 262p**) before payment of a £10.0 million special dividend (8.0 pence per share)
· Step change in level of development and trading gains - 69% increase to £45.7 million (2014: £27.0 million)
· £11.2 million increase (12.1%) in value of investment portfolio including share of joint ventures (2014: £4.8 million increase)

· Total dividends for the year increased to 13.9 pence per share (2014: 5.6 pence per share), comprising a recommended, increased final dividend of 3.5 pence per share (9.4% higher than 2014), interim dividend of 2.4 pence per share and special dividend of 8.0 pence per share


Operating highlights
· Cathedral Group acquisition in May 2014 has expanded portfolio of projects and is delivering value
· Management succession secured with strong leadership for the future
· Capital recycling enhances and refocuses investment portfolio
· Good visibility on significant development and trading gains in FY 2016 and beyond
· Clear focus and strategy for deployment of capital into new opportunities