BKY Berkeley Energia Limited

RNS No 2951c
BIRKBY PLC
1st September 1998
                                       
                                  BIRKBY PLC
             UK's leading provider of managed commercial property
                     to small and medium-sized businesses
                                       
                                 AGM STATEMENT
                                       
Speaking at Birkby plc's AGM today, chairman, Anthony Lewis, said;

"I  am  delighted  to announce an excellent start to the new  financial  year.
Demand  for  flexible space remains buoyant and we are continuing to  increase
licence fees across both the workspace and retailspace divisions. Furthermore,
since the year end the group has acquired over one million sq ft of space.  We
anticipate that these new purchases will yield our target investment return of
20% within 12 to 18 months.

Since  31  March 1998, the workspace division, IMEX, which represents  69%  of
group  operating profit, has increased the cash equivalent occupancy  rate  by
0.7%  to  85.3%.   On  a  like-for-like basis,  excluding  acquisitions,  this
represents  a  rise  of  4.2% on the same period last year.   The  retailspace
division, In Shops, which accounts for 24% of group operating profit, achieved
a  cash equivalent occupancy rate at the end of August of 80%, up 1.5% on  the
same point last year and up 0.2% since 31 March 1998. This increase from March
to  August  is  particularly encouraging since this is In Shops' traditionally
weaker  trading  period.  Each percentage point rise in  the  cash  equivalent
occupancy generates additional income of #220,000 from the workspace  division
and #266,000 from the retailspace division.

The  ten  new centres acquired during the first quarter, which were  announced
with  the  year  end results, have been swiftly integrated and are  performing
well.   I  am  pleased  to  say our acquisitions programme  has  continued  to
progress strongly.

In  July,  we  acquired a portfolio of 11 workspace centres in the north-east,
comprising  275,000 sq ft, from Easington District Council for a consideration
of #3.7 million. At the end of August we were delighted to acquire development
land  from Midlothian Council for #127,000 on Bilston Glen Industrial  Estate,
Edinburgh,  just  a quarter of a mile from our existing site  which  is  fully
occupied.  Demand for space remains strong in the area and we intend to  build
18  workshop units on the site, which is expected to provide an initial return
of 15% and our target return thereafter.

Continuing  our  policy of acquiring established markets  and  arcades,  I  am
pleased  to  announce  the acquisition for #750,000  of  a  retail  arcade  in
Accrington.   The  arcade is divided into 21 units, with office  space  above.
The initial return will be 14%, with further scope for improvement.

We  are  continually  exploring  new  initiatives  to  strengthen  our  retail
portfolio.  Where we see the potential to increase income, refurbishments  are
undertaken.   Work  has  recently commenced on the  Swan  shopping  centre  in
Birmingham and we have plans to upgrade a further four centres this year.

Birkby  announced  record  results  for the  last  financial  year.  This  was
principally  achieved  from  organic growth,  with  our  acquisition  activity
inhibited by the overheated conditions in the property market during the year.
In  contrast,  the  new financial year so far has been characterised  by  both
healthy  demand for workspace and retailspace and a considerably higher  level
of acquisitions, as property prices have softened.

We  anticipate  that our acquisitions programme will continue  vigorously  and
with  our strong balance sheet and modest gearing, we believe that we are very
well placed to take advantage of opportunities that exist in a property market
that  is increasingly in our favour. Currently we have a number of sites under
offer, all offering our target investment return.  We view prospects for  both
the short and medium term with great optimism."

For enquiries:

Birkby plc
Bill   Cran,  chairman                                     Tel: 0171 353 1234
Kim Taylor-Smith, chief executive                        (on 1 September only)

Biddick   Associates                                       Tel: 0171 377 6677
Zoe Biddick or Katie Tzouliadis

END







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