Poland Geared Growth Cell Curzon Capital PCC Limited (“the Company”)

Investor Report Q3 2010 Summary • • • • • • •

Share price was up 8.1% to 98.44 pence per share and the fund value is over £44m; Property portfolio values showed a small increase quarter on quarter, when adjusted for Sales, of 0.9% primarily due to an st uplift on Platinum Towers following the completion of the 1 phase of the fit out and perhaps most encouragingly uplifts in some of the other prime sites in Warsaw; The defensive nature of the Polish property portfolio is confirmed by the fact that the 22 developments in the property portfolio are collectively worth over 21 million Polish Zloty more today than their purchase price, an uplift of 8% since the date of purchase; The currency effect from converting the portfolio back into Sterling for valuation purposes showed a strong recovery from the previous quarter; Sales proceeds of over 2.4 million Polish Zloty were made during the quarter from the “secondary portfolio” and a further 2.0 million Polish Zloty was incurred in the quarter on completing the first phase of fit out of Platinum Towers, one of the primary portfolio assets; Outlook remains positive for the Polish residential property market; Investors and professional advisers will be receiving a proposal to consider off-market matched bargains at a 20% discount (78.75 pence per share) in order to “fast track” some outstanding redemptions on or about the 25th October 2010. This will not affect the NAV because any purchases and sales occur “off-market” between buyers and sellers.

Performance Review th

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The Fund NAV as at 30 September 2010 was 98.44 pence per share (30 June 2010 was 91.08 pence per share) representing an increase of 8.1% in the quarter to September. Though the Polish Zloty value of the underlying portfolio showed an increase over the quarter, the increase in the share price is dominated by the movement in Polish Zloty exchange rate to Sterling used for valuation purposes of 4.58 at the 30th September th 2010 against 5.05 at the 30 June 2010. As was reviewed in some detail in our previous quarterly report, the Polish Zloty/Sterling rate is for accounting purposes of calculating the NAV only and no physical conversion of Polish Zloty to Sterling is actually incurred. The longer term trend has been for a gradual strengthening of the Polish Zloty against Sterling and although the previous quarter showed a reversal of the longer term trend, the current quarter has recovered a substantial part of that reversal and the rate has continued to strengthen further during the first few weeks of October. Positive contributions to the portfolio value were primarily from Platinum Towers following the completion of the first phase of fit out giving an uplift of PLN 3.1m which recovered all of the cost of the actual fit out over the previous few months and Atelier Residence and Bruna Apartments with uplifts of 4.3% and 0.5% respectively. These latter two are potentially significant in that they signal a strong upward movement in property prices in general for the first time in several months. Being situated in prime locations within Warsaw, it is precisely in these developments that we would expect to see the first signs of recovery and we would anticipate the potential ripple effect of recovery to radiate from these areas over the coming months.

OCTOBER 2010 1

Principal Manager Review As reported in the previous report, the need for the Fund to tackle the issue of current redemption requests remains at the forefront. The Fund needs to factor in that property assets are relatively illiquid when compared with other asset classes and that a long term strategy needs to be employed to ensure capital is available in a timely manner. However, it is most important that any strategy adopted is not to the detriment of the long-term growth prospects of the Fund itself and thus to the majority of its shareholders. It is therefore our intention to start to look to provide a proportion of any available capital raised through property sales from the secondary portfolio that is over and above covering the running costs of the Fund to allow for some redemption requests to be met on an ongoing basis at NAV. However, as redemptions represent the minority of investors wishes, it is imperative that the majority of any available spare capital is used to further enhance the core portfolio through fit outs (which then result in rental income for the fund and easier access to raising bank finance) as well as property acquisitions to further enhance the NAV. We are combining our work on redemptions with a strategic review of the existing portfolio along with the Investment Adviser. We are seeking to identify those properties currently held which if sold over the next 18-24 month period could be used to generate liquidity for investors wishing to redeem at NAV as well as providing liquidity for alternative sites where performance prospects are considered to be favourable. In this way, we would look to fulfill all redemption requests and also gain some momentum for the development of the fund as a whole. The first immediate step in trying to meet investor redemption requests for the most urgent cases will be via the Fast Track Redemption, detailed below and subject to a separate notification on or about the 25th October 2010.

Fast Track Redemption We have continued to work on the proposal to offer those Investors and Professional Advisers who have already submitted th redemption requests by the 30 September 2010 the chance to participate in a series of off-market matched bargains for some or all of their Shares. This is intended to work such that if new subscribers or existing investors wish to purchase such shares this can be achieved at a discount to the then prevailing NAV of the Fund. We are pleased to announce that the proposal will be sent to shareholders on or about the 25th October 2010, the summary of the proposal is as follows: •

The discount is to be 20% to the 30 September 2010 NAV per share of 98.44 pence per share (equivalent to 78.75 pence per share), such discount being in line with the approximate discounts from selling properties in-bulk in Poland in today’s market, as advised by our Polish fund manager,

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This would enable new investors to achieve an immediate discount to NAV of up to 20% against current market value,

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This would enable existing investors to have the opportunity of averaging down the cost of their existing holding by acquiring further shares at an immediate discount to NAV of up to 20% against current market value,

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Advisers may agree with prospective Investors their usual introductory fee on subscriptions under this Fast-Track proposal.

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The advantage of such Fast Track redemption procedure is to allow Investors and Professional Advisers who have submitted redemption requests the chance to receive their proceeds of redemption in a short space of time, in return for accepting th discounted proceeds, with closure of the offer on the 30 November 2010 and payment in December 2010 In such a way we hope that the Fund may be able to remove some of the existing pressure of meeting urgent Redemption requests without having any impact on the current and future growth prospects of the portfolio, as the NAV will remain unaffected by such a Fast Track procedure. The information above is by way of background only and as such does not constitute any offer to investors, the offer of which will be sent by separate cover and prospective participants are advised to take their own professional advice and carefully read and consider the Risk Warning therein.

OCTOBER 2010 2

Portfolio Review Despite the summer period being traditionally slower for Sales, the Investment Adviser was able to conclude transactions on 11 apartments, although 6 of those had been started in the previous quarter, raising PLN 2.4m during the period. These were again predominantly in Poznan in the Osiedle Grunwald development. In turn PLN 2m was spent on completing the fit out of the first phase of apartments in Platinum Towers. The Current Portfolio is shown below, alongside the Purchase cost as adjusted to reflect any sales made.

Current Portfolio

Name

City

Purchase Date

Purchase Cost (PLN)

Valuation (PLN) 30/09/2010

Pustułeczki

Warszawa

31/07/2006

4,810,972

5,953,406

Płaskowickiej

Warszawa

10/08/2006

10,664,022

12,547,146

Włochy

Warszawa

10/08/2006

5,707,482

7,758,649

Górczewska

Warszawa

21/09/2006

6,279,340

8,434,232

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

4,073,665

4,422,209

Bruna

Warszawa

22/02/2006

4,491,940

5,234,646

Atelier

Warszawa

12/03/2007

9,607,337

11,304,412

Zawiszy Apartments

Warszawa

13/03/2007

5,384,705

5,979,437

Dolina

Gdynia

26/03/2007

1,645,821

1,639,300

Spiska

Warszawa

29/03/2007

8,589,996

10,773,349

Cyprysowa - Józefosław

Warszawa

25/05/2007

8,565,034

9,934,704

Olbrachta

Warszawa

22/06/2007

8,940,470

9,331,378

Willa Gloria

Milanówek

28/06/2007

5,805,802

6,269,494

Grodzisk Mazowiecki

28/06/2007

21,666,663

24,966,902

Poznań

28/06/2007

6,814,014

7,109,309

Platinum Tower

Warszawa

20/07/2007

43,568,760

44,304,510

Szulborska

Warszawa

20/08/2007

14,926,340

15,442,487

Julianowska - Józefosław

Warszawa

27/08/2007

13,321,665

13,857,388

Arkada

Bydgoszcz

13/09/2007

7,650,183

7,213,117

Rejtana

Poznań

05/11/2007

11,465,619

13,918,558

255,388,169

276,782,420

Grodzisk Osiedle Grunwald

Total

Revocation of Redemption Requests As part of the previous Investor Report a form was included to enable the revocation of unprocessed redemption requests. However, we are aware from some advisers that certain investors who have put in redemption requests may not be aware that it is entirely possible to revoke that redemption, having taken a different view of the Fund’s future potential given the time since the redemption request was submitted, the current share price and the current and future economic circumstances. The form is attached hereto.

OCTOBER 2010 3

Key Fund Facts th

NAV 30 September 2010 Fund size Launch date Launch price Dealing Dates Min. Subscription Loss since inception Listing Price published SEDOL ISIN Bloomberg Ticker Custodian Administrator Principal Manager

98.44p £44,163,340 st 31 May 2006 100.00p Quarterly £20,000 1.56% 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]

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. 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.

OCTOBER 2010 4

Poland Geared Growth Cell (“Cell”) Curzon Capital PCC Limited (“the Company”) Form for revoking a previously submitted redemption

Summary This form is for use by an Investor (and/or Professional Advisor on behalf of an Investor where so duly authorised by an Investor) in circumstances where a redemption request has previously been submitted to the Administrator of the Company, but the Investor (and/or Professional Advisor on behalf of an Investor, where so duly authorised) wishes to revoke that redemption request. Cell redemption requests submitted to the Company have not yet been effected by the Company due to insufficient liquidity.

Risk Warning A request to revoke an existing redemption request will mean the Administrator will remove such shares from the existing queue of redemptions to be effected when the Cell has sufficient liquid funds to enable, in the opinion of the directors of the Company, some existing redemptions to be paid. Partial revocations will not affect the position of the remaining redemption request(s) in the existing queue of redemptions. Therefore, there is no guarantee that a further request to redeem such shares in future will be able to be met at the time it is submitted if, in the opinion of the directors of the Company, there are insufficient liquid funds available to meet redemption requests.

Redeemers’ Application to revoke a previously submitted Redemption request Investor’s Name: Registered Name (if different) Registered Investor’s Account Number (if known): Professional Adviser’s Details:

Column 1. If you wish to revoke a redemption by way of an amount in GBP, enter here below the Value of Shares whose redemption is to be revoked (Note 1 below):

Column 2. If you wish to revoke a redemption by way of a number of shares, enter here below the Number of Shares whose redemption is to be revoked (Note 2 below):

Column 3. Value/Number of shares for which a redemption request(s) is to remain in place (Note 3 below):

Note 1: Enter here the value of shares in GBP in respect of which existing redemption requests are hereby formally revoked. Note 2: Enter here the number of shares in respect of which existing redemption requests are hereby formally revoked. Please complete only 1 of Column 1 or column 2 figures for revoking redemptions. Note 3: Enter here the number of shares in respect of which existing redemption requests are to remain in the existing redemption request queue. (Professional Advisors may only revoke redemption requests where so authorised by an Investor) I hereby confirm my request to revoke the existing redemption request in respect of the above value/number of shares as set out in either column 1 or column 2 above in accordance with the terms set out above. I confirm redemption requests to remain in place are noted in column 3 above. Signed by, or by duly authorised Advisor on behalf of, Investor: State Name & Company where applicable (CAPITALS PLEASE) Contact Details: Date: The original form should be submitted to; Ardel Fund Services Limited, PO Box 175, Frances House, Sir William Place, St Peter Port, Guernsey, GY1 4HQ. Fax: +44 (0)1481 732131 Tel: +44 (0)1481 723573