R.E.A. Holdings plc: Placing of preference shares

R.E.A. Holdings plc ('REA'or the 'company')

Placing of new 9 per cent cumulative preference shares and purchase of sterling notes

In the company's half yearly report 2017 published in September 2017, the directors stated that, to the extent that markets permitted, theywould seek to refinance a proportion of the £8.3 million nominal of 9.5 per cent guaranteed sterling notes2015/17issued by the subsidiary company, REA Finance N.V. ('REAF')and falling due for redemption on 31December 2017 ('2017 sterling notes'),by placingadditions to existing issues of fixed interest securities.

REA announces that GuyButler Limited('Guy Butler') has todayplaced firm for cash 8,358,768 new 9 per cent cumulative preference shares of £1 each (the 'new preference shares') at a price per share of £1 plus accrued dividend up to the date of settlement.

At the same time, the company has today purchased through Guy Butler £248,000nominal of 2017 sterling notes at 100 per cent of their principal amount,together with accrued interest up to and including the date of settlement.

The date of settlement for the placing of the new preference shares and thepurchase of 2017 sterling notes is expectedto be 16 October2017.

The new preference shares are fungible with, and amount to 13.1per cent of, the existing preference shares already admitted to trading. In accordance with the Prospectus Rules issued by the Financial ConductAuthority in compliance with relevant European law, no prospectus is required to be published, and it should be noted that the company is not publishing a prospectus, in connection with the placing of new preference shares.

The placing remainsconditional only upon the new preference sharesbeing admitted to the standard listing segment of the Official List and to trading on the London Stock Exchange's main market for listed securities. Application for admission is being made and it is expected that admission will become effective,and that dealings in the new preference shares will commence,on 16October 2017.

The preference shares entitle the holders to be paid out of the profits of the company available for dividend and resolved to be distributed, in priority to the payment of any dividend to the holders of any other class of sharesin the capital of the company,a fixed cumulative preferential dividend of 9 per cent per annum on the nominal amount paid up on such preference shares payable half-yearly in equal amounts on 30 June and 31 December. The preference shares are not redeemable.

The new preference shares will, upon issue, rank pari passuin all respects with the preference shares already inissue, including as regards payment of the preferential dividend due for payment in respect of thesix monthperiod to 31 December 2017.

As a result of the issue of new preference shares, REA's issued share capital will comprise40,509,529ordinaryshares of 25p each and 72,000,000 9 per cent cumulative preference shares of £1 each. The number of votes that may ordinarily be cast on a poll at a general meeting of REA and that attach to the issued ordinary shares is 40,509,529 (of which 132,500 are currently held astreasuryshares) and to the issued preference shares is nil.

The above figures may be used by REA shareholders for the calculations by which they determine whether they are required to notify their interest in, or change of interest in, shares of REA, under the Financial Conduct Authority's Disclosure and Transparency Rules.

Enquiries:

R.E.A.Holdings plc

Tel: 020 7436 7877