Investment Strategy and Business Plan

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The strategic objective of the Company is to maximise the return to its investors through investing in commercial and development property in selected European property markets.

As part of this business plan, and using advice from CB Richard Ellis ("CBRE") and the expertise and experience of the management team and Board, the Directors have analysed a number of European property markets and have chosen four in which the Company will concentrate its investment activity over the next 7 to 10 years.

The Company intends to achieve its strategic objective by investing 75% of the funds raised in investment property in Germany and the UK, with the balance of 25% being used to invest in development projects in Portugal, the UK and Ireland. However, the Company has the option of investing in other markets as opportunities arise.

Following the initial fund raising period, the Company will review specific investment and development opportunities which conform to the Company's overall investment strategy as set out in Part 4 of Section 2 of the prospectus. The business plan specifies that, unlike investment properties which may be retained for the full 7 to 10 year investment period, development projects, once completed, will be sold. The business plan proposes that the profits earned up to the divestment phase, in particular in the development activities of the Group, will be re-invested in further projects.

The key assumptions underlying the Company's strategic objectives and business plan are as follows:

Development Assumptions

• 25% of funds will be invested in development projects.
• Profit from development projects sold will be re-invested in further development projects.
• Projects will only be undertaken where local bank funding is secured.

Investment Assumptions

• 75% of funds will be invested in commercial rental investment properties.
• Only properties with a minimum gross initial yield in excess of 5% will be purchased.
• Bank funding of 75% of the value of the property.

Through the purchase of a balanced portfolio of assets, spread over a number of European countries and investment categories, the Directors believe that the Company will be in a position to minimise the risks associated with these investments.