1. 1 The European Market for Shar’iah Real Estate Funds “A niche market for specialists or a viable new business opportunity for major players?” Michael Walton Chief Executive Rynda Property Investors Terrapinn Real Estate Investment World Europe Conference London 23rd - 25th May 2006

2. 2 Objective of this Case Study To explain:-  what a Shar’iah fund is  the practical difficulties of establishing and managing such funds and  to finally make an assessment as to the market opportunities in Europe

3. 3 What is a Shar’iah Fund?  Established and managed in accordance with the Islamic law of Shar’iah – under the interpretation of the Qura’an  Two areas of particular relevance to real estate are the requirements:-  to avoid non permitted uses  to avoid riba - i.e. interest payments  Property uses involving betting, pornography, alcohol, armaments or certain financial services (especially teller operations) are not permitted  Borrowing debt directly to part finance the purchase of assets is not allowed  Respected Islamic scholars of religious law appointed to approve each aspect of the fund’s establishment and the on-going management  If satisfied a Fatwa (effectively a religious judgement) is issued

4. 4 Practical difficulties of establishing and managing Shar’iah funds  avoiding non permitted uses  Structuring for Shar’iah requirements, debt, transfer taxes and corporate and personal taxes  Asset and Cash management – income purification  Real estate investment market perception

5. 5 Proven Islamic fund structure Enforcer Property Owner Holding Co. External Investors Conventional Lending Bank Cayman Purpose Star Trust Debt Interest Freehold Cayman Islands LP Co-investment capital Prop Co General Partner Occupational Tenants Day one premium plus quarterly rent Ijara Agreement/Lease of asset plus Option to Buy Rent Dividend

6. 6 The market opportunities in Europe for Shar’iah structured real estate funds  European assets are attractive  1.3 billion Muslims in the world  Islamic institutions 1975 = 1 2005 = 300+  $250 billion AUM’s and 15%+ p.a. growth  Shar’iah funds require experienced teams of investment managers, lawyers and accountants who are dedicated to the business  Shar’iah funds will continue to be established by the smaller niche fund managers who can provide the focus required for this specialist investment product

7. 7 Rynda contact details Michael Walton Chief Executive Tel: +44 (0) 20 7866 6276 Mobile: +44 (0) 7771 915565 e-mail: michael.walton@ryndaproperty.commichael.walton@ryndaproperty.com Web:www.ryndaproperty.com Rynda Property Investors LLP is authorised and regulated by the Financial Services Authority.

8. 8 Important Information This presentation is intended to provide information about investments and investment services to professional investors who are familiar with and capable of evaluating the merits and risks associated with investments of the kind described. Investors must also be “Intermediate Customers” or “Market Counterparties” as defined under the rules of the UK regulator, the Financial Services Authority. The products and services to which this presentation relates are only available to such persons and any other persons should not act on it or rely on it. Any investments referred to may not be registered with any regulator, regulatory body or similar organisation or institution in any jurisdiction. Potential investors should verify whether products are listed on any stock exchange. Before making an investment, you should consider taking independent professional advice about the unregistered and potentially unlisted status of any product. This presentation is not to be construed as an offer, invitation or solicitation of any investment product in any jurisdiction, and is not being and will not be made available to the public. Any future investment will be subject to and made on the terms of the legal agreements relating thereto. The information contained is based upon a number of sources and believed to be correct, but cannot be guaranteed. Any opinion and estimates are judgments as of this date and are subject to change without notice. Indications of the potential return on the investment have been given in good faith but are not guaranteed and are subject to uncertainties beyond control and should not be relied upon by investors in forming investment decisions. No representation is made regarding the legal, accounting, regulatory or tax treatment of an investment in any jurisdiction relevant to a recipient of this document. This presentation contains proprietary information and, subject to applicable law, is confidential to its recipient’s professional advisors. Past performance is no guarantee of future results. Please note that investing in alternative investments such as real estate is not suitable to all investors. Alternative investments are intended for high net worth, sophisticated investors who can bear the economic risks involved. Risk factors should be fully reviewed prior to the decision to invest. Any information given or representation or statement made by any dealer, placement agent, salesman or other person and not contained herein should be regarded as unauthorised and, accordingly, should not be relied upon. The target return is not a prediction, projection or guarantee of future performance. It is based upon assumptions regarding future events and conditions which may not prove to be accurate: accordingly the target return should not form the primary basis for an investment decision. There can be no assurance that the target return will be achieved, and a loss of all or part of the investment may occur.