Company Summary

The Company is an investment company with limited liability, incorporated and registered in Guernsey as an open-ended company on 21 December 2005 for the purpose of investing in European commercial real estate. The Company became a closed-ended Company on 25 April 2007 and was admitted to the Official List of the UKLA and to trading on the London Stock Exchange on 4 June 2007.

Investment Objective and Policy

The Company’s objectives are to provide shareholders with an attractive level of income return, together with the potential for income and capital growth, through investment in European Commercial Property. The Company will target, in the absence of unforeseen circumstances, a gross annualised dividend yield of 6 per cent, based on the Issue Price for the period from Admission to 30 June 2008. The Company does not intend this target to be a projection or forecast of dividends actually payable or actual profit or cash available for distribution.

Dividend Policy

The Company’s dividend policy is to pay dividends quarterly to Shareholders. The Company intends to pay quarterly dividends in respect of the periods ending 31 March, 30 June, 30 September and 31 December in each year. Dividends will be payable in Sterling.

Management Fees and Expenses

The total expense ratio is estimated to be 0.75 percent per annum of Gross Asset Value, including management fees of 0.15 percent of Gross Asset Value payable quarterly to the Manager, and other expected external costs of administration. The estimate could vary for bid and investigation costs beyond the anticipated level.

The Manager is entitled to earn an acquisition fee of 1 per cent. The Manager is also entitled to an annual performance incentive fee of 20 percent of Total Shareholder Return in excess of a hurdle of 10 percent, subject to a high watermark starting on 31 December 2008.