Residential Property Investment Proposal

Short-term Acquisitions. - utilising 25% of Shareholders' Capital

Bank borrowings of up to 70% loan to value will be sought and applied again to increase available resources. On average, £500,000 will be invested in a typical refurbishment opportunity with another £140,000 spent on upgrading and selling the property, including loan interest. Returns are usually realised within six to twelve months, and will vary and depend on the state of the market for sale, but could range from 40% to 60% of the shareholders' capital employed.

For both types of investment the Directors will endeavour to limit the Companies' exposure to interest rate rises by use of various financial instruments.