CRC.L Regulatory News (CRC)

Circle Property plc

("Circle" or the "Company" or the "Group")

First trading update since IPO shows strong progress with portfolio asset management leading to positive valuation uplift together with announcement of maiden dividend

12 May 2016 - Circle Property plc (AIM: CRC), a specialist regional UK property investment, development and management company, today announces its first trading update since its IPO on the AIM market of the London Stock Exchange on 16 February 2015.

During the period since its Admission to AIM, the Company has successfully progressed a number of asset management initiatives which have helped contribute to a 12.3% like-for-like increase in Circle's portfolio valuation, since the 30 September 2015 half year, and acquisitions which have increased the portfolio valuation to £77.7 million as at the 31 March 2016 year-end valuation. 135, Aztec West in Bristol and Somerset House in Birmingham were acquired in December 2015 and January 2016 respectively.

The Board is pleased to announce a maiden dividend of 2.4 pence per ordinary share in respect of the six month period ending 31 March 2016 which will be paid on 26th May 2016 to shareholders on the register at the close of business on 20th May 2016 with an ex-date of 19th May 2016.

Highlights include:

· Fully leasing our recently refurbished Elizabeth House office property on London Road in Staines, having now let the last remaining space at this 14,733 sq ft building to Hardy & Hewitt Ltd.

· Following the completion of phase one of the Company's £11 million transformational refurbishment of its Kents Hill Business Park in Milton Keynes, Circle has leased the entire 13,500 sq ft first floor of the K1 building to Trafficmaster Ltd, until December 2025. With practical completion of the second phase of the refurbishment, Building K2 is expected to complete in the next few weeks, with interest from potential occupiers for the remaining 40,000 sq ft of grade A office space.

· A start on site at 36 Great Charles Street, Birmingham, (24,500 sq ft) where we are undertaking a rolling refurbishment.

· The submission of a planning application for our 49,197 sq ft Somerset House office property, which is located on Temple Street, within Birmingham's central business district, where we are seeking a change of use on the ground floor that will allow us to create two restaurant units.

John Arnold, CEO of Circle Property plc, commented: "We have made excellent progress since our AIM Admission in February 2016 and continue to add value to our portfolio through active asset management, as reflected in the 12.3% like for like increase in portfolio valuation in the second half of the year. I am also pleased to be able to announce Circle's maiden dividend which underlines the Board's confidence in the management team's continued ability to create shareholder value form the existing portfolio and from carefully selected acquisitions where they see clear asset management opportunities."