SGM.L Regulatory News (SGM)

AIM: SGM

SIGMA CAPITAL GROUP PLC

("Sigma" or "the Group")

Re: Salford Partnership

(also known as the Higher Broughton Partnership)

Detailed Planning Consent Granted

for

Major Healthcare and Retail Scheme

Sigma, the finance, property and urban regeneration specialist, is pleased to announce that detailed planning consent has been granted for a major new healthcare and retail scheme worth approximately £9 million at Newbury Place, Higher Broughton, Salford, triggering the completion of an associated Development Contract, and fees and profit share due to Sigma of approximately £0.3m. The income of approximately £0.3m will be fully recognised in the results for the year to 31 December 2012.

As previously reported, the scheme comprises a 30,000 sq ft development incorporating a GP surgery, dental practice, pharmacy, optician and a new convenience store, pre-let to Tesco. It is part of a major urban regeneration project being undertaken by Sigma's regeneration subsidiary, Sigma InPartnership, as limited partner of the Salford Partnership (with the two other limited partners being Salford City Council and Royal Bank of Scotland). A specialist developer will own and manage the facility and building completion is expected in early 2014.

Sigma InPartnership via the Salford Partnership has to date seen the delivery of approximately £45m of new homes in the Higher Broughton area of Salford as well as a new community facility, new sports facilities and the refurbishment of two local schools. As previously announced on 3 April 2012, the next phase of residential construction of an additional 80 homes is expected to commence imminently, with sales of the homes expected in 2013 and 2014. Progress is also being made with other developments in the Salford Partnership.

Graham Barnet, Chief Executive of Sigma, said,

"We have made great progress this year with the Salford Partnership, one of our three council partnerships, and the grant of detailed planning consent for this major healthcare and retail scheme in Higher Broughton, represents further momentum. We have engaged with a specialist medical facility developer to deliver the project and construction will be starting shortly. I am pleased to report that we are also advancing other sites within the Partnership."

About the Salford Partnership (also known as the Higher Broughton Partnership)

The Salford Partnership is a limited partnership formed in 2004 between Salford City Council, Royal Bank of Scotland and Sigma InPartnership.

The Salford Partnership started with an option over approximately 30 acres of land in Higher Broughton in Salford, some 1.5 miles from Manchester city centre. The land in the partnership can be drawn down and developed by Sigma InPartnership or the partnership at a fixed price per acre. Sigma InPartnership manages all the development work and is paid a management fee on a project by project basis. Development profits and enhanced land values are shared among the partners on a deal by deal basis.

The partnership is eight years into a 12-year programme of development.

About Sigma InPartnership

Sigma InPartnership is a wholly owned subsidiary of Sigma and operates from offices in Manchester and Birmingham. Sigma InPartnership was established as an investment led property-related regeneration company, specialising in the creation of long term, asset-backed partnerships with the public sector.

Sigma InPartnership has secured three partnerships, with Liverpool City Council, Solihull Metropolitan Borough Council and Salford City Council, each ranging from 10 to 20 years' duration. The partnerships hold long term option arrangements with the respective local authorities for a mix of residential, commercial, education and health opportunities. In total, the partnerships provide for the delivery of over 10,000 new homes, a significant number of new retail centres, health/medical centres, schools and mix of retail/leisure facilities.

The total development value of the opportunities held within the three partnerships is estimated at well over £2 billion.