Company Information

Risk Factors of Residential Property Investment

Attention is drawn to the Risk Factors set out below and to the Risk Warning which must be read by potential Investors.

The Directors believe the following risks to be the most significant for potential Investors. The risks listed do not, however, necessarily comprise all the risks associated with an investment in the Companies:

The operations of the Companies are subject to the risks normally associated with the UK property market, namely that interest rates can rise as well as fall from time to time, whilst property prices, rent levels and rental demand can fall as well as rise. The effect that these factors may have on the profitability of the Companies cannot always be predicted accurately.

The rental market, like the property sector in general, can be adversely affected by general economic factors and the subsequent impact on an individual's disposable income. A national recession would most likely have a negative impact on property values, if only in the shorter-term and could affect the availability of suitable tenants. Furthermore, a change in government legislation could lead to the re-imposition of rent controls. Realisation of the investment is dependent on the sale of the Companies' properties or share and the price obtainable at that time cannot be guaranteed.

No application is being made for admission of the ?Ordinary Shares to an investment exchange. It may be difficult to (a) sell or realise the investment and (b) obtain reliable information about its value or the extent of the risks to which it is exposed. Potential Investors should be aware that the value of investments can rise or fall and that the price which Investors may realise for any investment, if and when they are able to do so, may be considerably less than the original amount invested by them.

This document includes financial information relating to the past. Past performance is no guide to future performance.

Changes in legislation, and in particular any changes to the levels or bases of taxation, may affect the value of an investment in the Company.

The tax reliefs referred to in this document are those applicable at the date of this document. Please note that the levels or bases of taxation can change and that the value of a relief from taxation depends on the individual circumstances of the Investor.

The investment offered in this document may not be suitable for all of its recipients. Investors are accordingly advised to consult an investment adviser authorised under the Financial Services and Markets Act 2000 who specialises in investments of this kind before making their decision.