2. Stuart Law – CEO Assetz plc and Assetz Fund Management Ltd Why Cyprus Why Cyprus Fund Investment Strategy Fund Investment Strategy Where to Invest Where to Invest Returns Available Returns Available

3. Why Cyprus

4.  Cyprus is the third largest island in the Mediterranean Sea – population of 750,000  Cyprus has developed as a favoured tourist destination  The economy has developed significantly  Economy is free market services based  Became a full member of the EU in May 2004  Set to use the Euro in January 2008  Has a strong British presence and ex-pat community  A significant portion of tourism income comes from Britain but also Russians, Norwegians and other Europeans  Legal and land registry systems are largely based on British practices

5. Why Cyprus  Corporation tax rates are amongst the lowest in Europe  The country has a well educated labour force  Established business and financial services  Modern telecommunications  International transport capabilities  Low crime rate  English is widely spoken throughout Cyprus  Cyprus boasts on average 300 days of sunshine per year  Cypriots drive on the left hand side of the road

6. Why Cyprus

7. Fund Investment Strategy Diverse range of investments that are rental-backed including : Diverse range of investments that are rental-backed including : Local let residential property Student let residential property Holiday let residential property Commercial Office property Commercial Retail property

8. Local Let Residential Property

9.  In cities such as Limassol there is restricted availability of affordable accommodation for locals  Property being built for this purpose is achieving around 8% initial yield  Pressure on rental growth is strong leading to the imposition of a limitation on rental uplifts capped at 14% every two years  Specific developments have been identified at an early stage that may be purchased for this purpose with an experienced full management company in place

10. Student Let Residential Property

11.  Specific opportunities in two cities on the University campuses  Student halls of residence with commercial space for laundrettes, shops, etc.  Gross yields estimated at 10%  Individual dedicated student flats are under the local apartment rental rates and prices even at these yields

12. Holiday Let Residential Property

13.  A number of sites have been identified where it is possible to customise the building of apartments and villas for tour operator use  Initial negotiations are underway with a number of operators to pre-let clusters of holiday villas or apartments for occupation once completed on a 3 year contract  Delivery expected in approximately 2 years but contracts would be signed now  Rental income will service all debt and be profitable

14. Commercial Office Property

15.  The Fund has identified a potential opportunity to purchase a new-build pre-let to the Cypriot government by co-bidding with the main contractor for the contract  Other opportunities exist due to government moves to modern offices decentralised from the centre of the Capital  Lenders are indicating up to 75% loan to value on this type of investment  Initial indications are for a 10% gross yield on purchase price

16. Commercial Retail Property

17.  There is a lack of large retail parks in Cyprus, retail being centred primarily on small shops  We plan to work with local developers to seek out suitable sites for such developments with planning permission and then seek pre-lets from larger retailers, both local and international, and to agree to fund the development and purchase the complete property  One site has already been identified in the heart of the main ex-pat British community that is extremely well located

18. Mortgages and Yields  Mortgages - Low Base rates  Euro Libor rate  Swiss Franc Libor rate  + 1.5% typically  On 70% LTV effective rates of 2.8% of property price typically

19. Mortgages and Yields  Yields  8% local let  Less 10% full management  7.2% net yield  Less 2.8% effective interest rate cost  4.4% of property price in gross profit  4% net profit after tax

20. Mortgages and Yields  Returns  If prices rise at 7% pa total return is 11.4% of the property price pa or 38% pa on property equity  If rent grows at 7% pa then in the 5 th year the total return is around 15% of the original property price or 50% of the original equity

21. Fund Structure Consortium Investment Management Limited

22. Owned by Allsop LLP

23. Consortium launched in 2002 Over £½ billion of assets currently under management Establish, operate and manage funds for clients of: Barclays Capital KPMG BDO Stoy Hayward Assetz

25. Thank you  Stuart Law  Assetz Fund Management Ltd