24 January 2014 Serviced Office Group (AIM: SVO) Sale of Beckenham property Serviced Office Group plc ("SVO" or the "Company") is an AIM-listed provider of flexible office space and IT solutions, currently operating 38 business centres, predominantly in the London area.

SVO is pleased to announce that on 23 January 2014 it exchanged contracts for the sale of its leasehold interest in County House, Beckenham, for a total cash consideration of £5.07m.
County House is being acquired by Perfect Estates Ltd., a London based property owner. It will continue to be run as a business centre by SVO, and SVO will continue to provide its IT services, for at least the next 12 months.
This sale continues the Company's strategy of selectively selling its remaining property assets in order to focus its resources on shorter leases and management contracts of properties in Central London suitable for use as serviced office accommodation. The Company expects to use the proceeds of the sale (net of disposal fees) as follows:

approximately £760,000 will be used to satisfy the deferred fee owed to Royal Bank of Scotland ('RBS') in connection with the disposal of Country House under the profit participation fee arrangement entered into with RBS as part of the Company's refinancing in October 2012; and

the balance of approximately £4.2m will be used towards retiring its debt facility with

HSBC.
In the year to 31 December 2012, the profit attributable to County House was £125,000. As at 31 December 2012, County House had a book value of £3.5m. SVO will recognise a pre- tax profit on the sale of approximately £685,000 allowing for the element paid to RBS.
Dan Taylor, Chairman of SVO, commented:
"This sale, following on closely from announcing exchange of contracts on our Harrow and Hayes buildings in December, almost completes our stated aim to divest ourselves of all freehold ownership. Upon completion of these transactions, the Company will be left with only its Crawley site and expects to be debt free and have paid RBS the entirety of its deferred fee remaining from the refinancing in 2012 (except for any fee which may be payable on the Crawley disposal as and when it occurs) before the end of this fiscal year.
We are continuing to focus on expanding our portfolio of short leasehold and managed sites in Central London. The two new leasehold buildings we described in our December update are currently with the Group's lawyers, and a third, offering approximately 350 desks, is now at the heads of terms stage. We are very pleased with the strong momentum with which we start the new year."

Enquiries:

Serviced Office Group Tel: 020 7550 5500

Daniel Taylor, Chairman

Alan Pepper, Chief Executive Officer

Shore Capital & Corporate Tel: 020 7408 4090

Stephane Auton l Patrick Castle

Weber Shandwick

Nick Oborne

Tel 020 7367 5100

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