Quadrise Regulatory News (QED)

2 October 2013

Quintain Estates & Development PLC

("Quintain" / "Company" / "Group")

Quintain Agrees the Disposal of SeQuel Regional Investment Property Business

Proceeds will be applied to reduce debt

Further to the statement made on 2 September 2013, Quintain Estates and Development PLC today announces that contracts have been conditionally exchanged with Palace Capital plc, an AIM-quoted company, regarding the sale of Quintain Signal Member A Ltd ("Signal"), the owner of the SeQuel regional property portfolio, along with an additional property, Gelderd Point in Leeds (together, the "Proposed Disposal").

The Proposed Disposal is conditional upon approval by Palace Capital's shareholders at a general meeting to be held on 18 October 2013 and the completion of a £23.5 million placing by Palace Capital to part-fund the acquisition.

The agreed purchase price for Quintain's interest1 in the business is £39.05 million with normal adjustments for working capital. At 31 March 2013, the comparable gross asset value for Quintain was £42.42 million. For the year ended 31 March 2013, the business being disposed by Quintain made a loss before tax of £11.8 million.

As part of this transaction, £550,000 of the net proceeds will be used to subscribe for shares in Palace Capital (approximately 2.5% of the enlarged issued share capital of Palace Capital). The balance of the net proceeds will be used to reduce the Company's debt.

The Palace shares subscribed for by Quintain will be subject to a lock-in for 12 months after completion and subject to orderly marketing arrangements for a further 12 months after that period.

This transaction does not include Stadium Retail Park, which was valued at £13.8 million at 31 March 2013, and is owned by Signal Property Investments Two LLP.

Richard Stearn, Finance Director of Quintain, said:

"We are delighted to have agreed this transaction which disposes of the majority of our residual regional investment property business. The sale is in line with our strategy to exit non-core assets outside London, reduce group debt and intensify the focus on our London development and investment business and principal asset management activities."

ENDS - -

Notes

(1) Quintain holds 98.5% of the equity in Signal and 100% of Gelderd Point in Leeds.

(2) Quintain fully consolidates Signal with the value of 100% being £42.6 million. Post adjusting for the 1.5% minorities the value is £42.4 million.