Poland Geared Growth Cell City Life PCC Limited (“the Company”)

Investor Report Q4 2010 Summary • • • • •

Share price was down 3.5% to 94.92 pence per share, with negative FX movements and discounts on sales (although not all sales) contributing to the fall; The 22 developments in the property portfolio are now collectively worth close to 20million Polish Zloty more today than their purchase price, an uplift of over 7% since the date of purchase; For the second quarter in succession there has been a positive uplift in valuation from some of the key developments in Warsaw and small improvements in a number of other developments primarily within the Warsaw area; Recent sales agreed at Wlochy have been at a premium to the last valuation and may show the sign of the start of a possible recovery in actual prices being achieved ; During the quarter some Fast-track off-market transactions between buyers and sellers and revocations of redemptions reduced the redemption queue.

Performance Review st

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The Fund NAV as at 31 December 2010 was 94.92 pence per share (30 September 2010 was 98.44 pence per share) representing a decrease of 3.5% in the quarter to December. After adjusting for sales completed during the quarter the like for like Portfolio in PLN terms was broadly flat, st but with the Polish Zloty weakening against Sterling during the quarter from 4.62 as at the 31 December 2010 th from 4.58 at the 30 September 2010, this has led to a decline in the property portfolio in sterling terms of around (1%), equivalent to around (1.4%) on the NAV. It is worth noting that at today’s exchange rate of PLN:£ 4.50 (Source: Bloomberg) the underlying portfolio in sterling terms would have been up on the quarter around +1.6% and correspondingly the NAV effect would have been approximately +2.2%. Within the portfolio itself for the second quarter in succession we saw increases in valuation within a number of the key Warsaw developments notably Bruna and Atelier and improvements in performance from a number of other developments albeit small in nature. As we commented last quarter, this may be the start of a ripple effect of recovery emanating from the prime locations within Warsaw and may reflect the beginnings of the improvement in the real estate market in Poland as has been noted by some forecasters and commentators, with improved mortgage capacity in contrast to that reflected in other countries.

In keeping with a more aggressive policy of raising liquidity a number of sales took place during the quarter with seven property sales proceeds received and five new preliminary sales agreements signed. Whilst a number of these sales continue to be at a discount and have therefore contributed to the overall negative performance it is worth noting that among these latter sales, at Wlochy, all 3 were made at a premium compared to their last valuations. This is again a positive sign that a recovery may be starting to take place.

Principal Manager Review Redemptions The need to balance the longer term development of the fund due to income and growth derived from property values against the need to effect redemptions is an ever present issue. We have reduced the redemption queue by nearly 5% over the quarter on a like-for-like share basis. This reduction came from a combination of the Fast-track off-market service matching Fast-track redeemers to buyers, it should also be noted that the Directors were significant buyers as separately disclosed to the Channel Islands Stock Exchange and some shareholders revoked their redemptions. We continue to receive comment that some investors who put in redemption requests may not actually wish to redeem all their holdings and therefore we again attach a revocation form for those who wish to revoke some or all of their existing redemption requests. Advanced negotiations are underway with a Polish lender against the Platinum Towers development. Subject to a successful conclusion and drawdown of funds, and once the fund’s other liabilities are covered, the Directors are optimistic that the fund might be in a position to commence the payment of partial redemptions to those first in the redemption queue in the third quarter of 2011.

Polish Property Market In a recent independent professional advisers’ report some positive signs in the Poland property market place were noted with mortgages becoming more freely available and an improving interaction of supply and demand in property transactions. Interest rates remain low, the labour market has stablised and the economy seems likely to demonstrate a steady growth. 2011 Polish GDP has been forecasted to achieve 3.5-4.3% by some major Polish and foreign institutions. This is likely to be a vast improvement over that of many Western European countries, probably including the UK.

Portfolio Review Rental Activity Good progress has been made in the quarter as regards rental activity with the first tranch of Platinum Towers (15 apartments) completed and rented, and rental agreements signed on Bruna (6) and due to be signed on Atelier (12) in early 2011, following the completion of fit outs of both of these developments over the last quarter. A rental agreement has been signed for the remaining 19 units of the Platinum Towers development which will be fitted out in the first quarter of 2011.

Delayed Developments There are currently five developments that have been put “on hold” due to cash flow restraints. Subject to cash-flow and external financing facilities, the Investment Adviser expects to be in a position to start one or more of these projects in the coming year.

December 2010

The Current Portfolio is shown below with the purchase cost adjusted from the previous quarter to reflect sales made during the last quarter.

Current Portfolio

Name

City

Purchase Date

Purchase Cost (PLN)

Valuation (PLN) 31/12/2010

Pustułeczki

Warszawa

31/07/2006

4,810,972

5,955,542

Płaskowickiej

Warszawa

10/08/2006

10,636,021

12,519,146

Włochy

Warszawa

10/08/2006

5,707,482

7,756,329

Górczewska

Warszawa

21/09/2006

6,279,340

8,386,656

Listopada

Kraków

12/12/2006

10,245,430

10,245,430

Jesionowa

Katowice

29/12/2006

41,162,909

40,142,357

Impresja

Warszawa

16/02/2007

3,389,820

3,454,783

Bruna

Warszawa

22/02/2006

5,096,404

5,497,504

Atelier

Warszawa

12/03/2007

9,986,868

11,367,941

Zawiszy Apartments

Warszawa

13/03/2007

5,384,705

5,986,409

Dolina

Gdynia

26/03/2007

520,314

554,840

Spiska

Warszawa

29/03/2007

8,589,996

10,788,555

Cyprysowa – Józefosław

Warszawa

25/05/2007

8,565,034

9,709,078

Olbrachta

Warszawa

22/06/2007

8,940,470

9,331,377

Milanówek

28/06/2007

5,805,802

6,264,850

Grodzisk Mazowiecki

28/06/2007

21,666,663

25,072,043

Poznań

28/06/2007

6,251,827

6,477,480

Platinum Tower

Warszawa

20/07/2007

43,568,760

44,317,140

Szulborska

Warszawa

20/08/2007

14,926,340

15,439,243

Julianowska – Józefosław

Warszawa

27/08/2007

13,321,665

13,650,782

Arkada

Bydgoszcz

13/09/2007

7,650,183

7,180,045

Rejtana

Poznań

05/11/2007

11,465,619

13,767,870

253,972,628

273,949,165

Willa Gloria Grodzisk Osiedle Grunwald

Total

Revocation of Redemption Requests As noted above and in previous reports, the form to enable revocation of unprocessed redemption requests is attached for use by investors who wish to revoke some or all of their existing unfulfilled redemption requests.

December 2010

Key Fund Facts st

NAV 31 December 2010 Fund size Outstanding redemptions total Launch date Launch price Dealing Dates Min. Subscription Loss since inception Listing Price published SEDOL ISIN Bloomberg Ticker Custodian Administrator Principal Manager

94.92p £42,587,967 £14.5 million st 31 May 2006 100.00p Quarterly £20,000 5.08% Channel Islands Stock Exchange (“CISX”) Financial Times & Reuters B125N44 GB00B125N441 POLGEGR GU BNP Paribas Trust Company (Guernsey) Limited Ardel Fund Services Limited Stratton Street Capital (CI) Limited

Contact Details Promoter: Contact: Tel: E-mail:

Stratton Street Capital LLP Andrew Main 0207 766 0888 [email protected]

Principal Manager: Contact: Tel: E-mail:

Stratton Street Capital (CI) Limited David Whitworth/Kevin Lemmon 01481 237775 [email protected]

Administrator: Contact: Tel:

Ardel Fund Services Limited Laurie Slimm 01481 723573 [email protected]

E-mail:

Important Information This Investor Report should be read in conjunction with, and in the context of, the Information Memorandum of the Curzon Capital PCC Limited Poland Geared Growth cell (the “Scheme”) which has been prepared to comply with the terms of Rule 10.01 of The Collective Investment Schemes (Class B) Rules 1990 (the “Class B Rules”) as issued by the Guernsey Financial Services Commission (the Commission”) pursuant to the Protection of Investors (Bailiwick of Guernsey) Law, 1987 (the “Law”). Stratton Street Capital (CI) Limited does not guarantee the accuracy, adequacy or completeness of the information contained herein and is not responsible for any omissions or for the results obtained from such information. Expressions of opinion herein are subject to change without notice. These materials do not constitute an offer to sell or solicitation of an offer to buy shares in the Scheme. The Scheme referred to in this Investor Report constitutes an “unregulated collective investment scheme” for the purposes of the restriction on the promotion of unregulated schemes under section 238 of the UK FSMA and, accordingly, the Scheme cannot be marketed in the UK to the general public.

December 2010

Past performance is no guide to future performance and the value of the shares in the funds may go down as well as up. Curzon Capital PCC Limited is an open-ended investment company incorporated in Guernsey with registration number 43271 on 13th June 2005. It is established as a protected cell company and is governed by the provisions of The Companies (Guernsey) Law, 2008, as amended (the “Companies Law”). It has been authorised by the Commission as a Class B Scheme under the Protection of Investors (Bailiwick of Guernsey) Law, 1987.

December 2010