Stuart Law – CEO Assetz plc and Stuart Law – CEO Assetz plc and Assetz Fund Management LtdAssetz Fund Management Ltd

Why CyprusWhy Cyprus Fund Investment Strategy Fund Investment Strategy Where to InvestWhere to Invest Returns AvailableReturns Available

Why CyprusWhy Cyprus

Why Cyprus 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

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

Why Cyprus

Fund Investment StrategyFund Investment Strategy Diverse range of investments that Diverse range of investments that

are rental-backed including :are rental-backed including : Local let residential property Student let residential property Holiday let residential property Commercial Office property Commercial Retail property

Local Let Residential PropertyLocal Let Residential Property

Local Let Residential PropertyLocal Let Residential Property

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

Student Let Residential Property

Student Let Residential Property

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

Holiday Let Residential Property

Holiday Let Residential Property

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

Commercial Office Property

Commercial Office Property

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

Commercial Retail Property

Commercial Retail Property

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

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

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

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 5th year the total return is around 15% of the original property price or 50% of the original equity

Fund StructureConsortium Investment Management Limited

Owned by Allsop LLP

Consortium launched in 2002Over £½ billion of assets currently under management

Establish, operate and manage funds for clients of:

Barclays Capital

KPMG

BDO Stoy Hayward

Assetz

Thank you Thank you

Stuart LawStuart Law Assetz Fund Management LtdAssetz Fund Management Ltd