Presentation to Bond Holders 16 June 2008

Introduction • Elliot Fidler - CFO • David Hammelburger - CEO • Andrew Berkeley - COO

Structure of Presentation • • • •

Overview of the Company Comparison of Prospectus v Actual German economic and retail overview Key financial data – 2007 – Q1 2008 – Cash flow 2008 – Overview 2009 – Banking covenants • Bond payments • Questions

‫‪Disclaimer‬‬ ‫•‬

‫•‬

‫•‬

‫•‬

‫מצגת זו נערכה לשם תמצית ונוחות בלבד‪ ,‬ואינה מיועדת להחליף את הצורך לעיין‬ ‫בדיווחים אשר פרסמה החברה לציבור‪ ,‬בטרם קבל תהחלטה בדבר השקעה‬ ‫בניירות ערך של החברה‪ ,‬ואינה מהווה הצעה של ניירות ערך של החברה‪.‬‬ ‫המצגת כוללת הערכות‪ ,‬תחזיות ותכניות המתייחסות לאירועים ועניינים עתידיים‪,‬‬ ‫מהוות מידע צופה פני עתיד כהגדרתו בחוק ניירות ערך‪ ,‬תשכ"ח–‪ 1968‬העובדות‬ ‫והנתונים העיקריים אשר שימשו בסיס למידע זה הינם עובדות ונתונים בנוגע למצב‬ ‫הנוכחי של החברה‪ ,‬חברות הבנות של החברה )" חברות הבנות"( ועסקיהן‪,‬‬ ‫עובדות ונתונים בנוגע למצב הנוכחי של תחומי הפעילות בהם פועלת החברה‬ ‫וחברות הבנות ב אזורי פעילותן‪ ,‬ועובדות ונתונים מאקרו כלכליים‪ ,‬והכל כפי‬ ‫שידועים לחברה במועד הכנת מצגת זו‪.‬‬ ‫המידע צופה פני עתיד הכלול במצגת זו מבוסס‪ ,‬בנוסף לעובדות ולנתונים הקיימים‬ ‫בחברה‪ ,‬על ציפיות והערכות נוכחיות של החברה לגבי התפתחויות עתידיות בכל‬ ‫אחד מהפרמטרים האמורים‪ ,‬ועל השתלבותן של ההתפתחויות כאמור אלה באלה‪.‬‬ ‫התממשותו או אי התממשותו של מידע צופה פני עתיד כאמור‪ ,‬יכול שתושפע‬ ‫מגורמים אשר לא ניתן להעריכם מראש ואשר אינם בשליטת החברה וחברות‬ ‫הבנות‪.‬‬

Company Structure Duisburg Holding (Luxembourg) SA

94.8%

100%

David Singleton Woellstein Jersey Ltd 100%

Duisburg Limited Partnership

David Singleton Woellstein GmbH & Co KG

100%

David Singleton Hotel Windrose Jersey Ltd 100%

David Singleton Hotel Windrose GmbH & Co KG

Directors • Alex Van Zeeland - Chairman – Experienced corporate director – Qualified accountant

• David Hammelburger - CEO – 15 years real estate experience in UK and Europe – UK portfolio of £200 million, growing German portfolio

• Andrew Berkeley - COO – Experienced in real estate management

• Michelle Carvill – Experienced corporate director

Senior Management • Elliot Fidler – CFO – Chartered Accountant – CFO of AIM listed company

• Alain Bornstein - Head of Property Acquisition – Experienced specialist real estate attorney – Full time real estate investment professional, dual German-UK citizen

• Dr. Axel Froese – Property Management Consultant – German chartered surveyor; 1993-1998 – Hypo Bank AG (now HVB), 1999-2002 – Bank of Scotland, Head of German Real Estate, 2002-2005

• Neil Cohen – Business Development Adviser

Comparison of Prospectus v Actual Prospectus

Actual

• Purchase new assets and refinance existing assets • Invest in revenue producing real estate in Germany mainly leased to large wholesale chains • Complete on all contracts that were notarised at the time • Repay non banking finance • Not repay any loans to shareholders to cause the remaining shareholders loans and equity to fall below €8m

• Achieved • Achieved

• Achieved • Partly repaid • Non repaid

Comparison of Prospectus v Actual Prospectus

Actual

• 17 properties

• 21 properties

• Total property cost €77m

• €85m

• Total bank debt €62m

• €73m

• Interest rate 5.15%

• 5.63% (Ave)

• Mortgage Interest cost €3.2m pa

• €4.3m pa • CPI/currency exposure fully hedged

German Economic Snapshot • Germany saw relatively strong GDP growth of 2.5% during 2007 but the outlook for 2008 is 1.8% • Labour market has continued to improve – Unemployment is forecast to fall from 8.1% in 2007 to 7.2% in 2008 • Retail sales have been poor in recent months • Consumer spending expected to increase in 2008

Source: Cushman & Wakefield

German Economic Snapshot -

CPI

Annual Percentage Change in CPI 3.3 3.1 2.9

Annual Change (%)

2.7 2.5 2.3 2.1 1.9 1.7 1.5 Jan

Feb

Mar

Apr

May 2007

Source: Cushman & Wakefield

Jun

Jul

Aug Month

Sep

Oct

Nov

Dec

Jan

Feb 2008

German Retail Snapshot • Occupational demand continued to improve over Q1 2008 • Prime high street and shopping centre locations continue to do well • Prime high street and shopping centre yields have remained stable despite the turmoil on the global financial markets • Prime retail capital values are expected to remain stable for core properties – although some softening can not be ruled out • Indicative valuations that we have received are showing an average reduction in property values of 4.5% as at March 2008

Source: Cushman & Wakefield

The Credit Crunch • Banks are more cautious and are taking longer to make decisions • Facility fees have increased • Margins have increased • Loan to value has decreased • Exit fees have increased

Portfolio Locations

Kiel

Schwerin Ritterhude Twist

Buende Rees

9

Duisburg Rheinhausen

Burgdorf

Krefeld

Gosen

Keonigslutter

10 Duisburg Lage

2 2 Total properties

Geilenkirchen

Hamm Eitorf

23 Weilerwist

Gemuenden Woellstein

Bruckberg Straubing

Completed – pre bond offering

Lebach Weilerbach

Completed – 2007 Completed – 2008 to date Notarised

Portfolio Summary –

Completed Properties to date € 000

• Properties at cost

85,300

• Indicative market value of properties

85,700

• Outstanding bank mortgages

72,720

• Quarterly rental income

1,467

• Quarterly net bank mortgage interest cost

1,030

• Quarterly bank mortgage capital repayments

80

Analysis of Current Tenants Tenant

% of total rent

25.9% 24.7% 12.1% 3.3% 3.1% 3.0% 2.8% 2.3%

Key Financial Data - 2007 Income Cost of sales Gross profit Revaluation of properties Overheads Finance costs Pre tax loss Tax Net loss

€000 3,795 (315) 3,480 2,166 (457) (5,532) (343) (653) (996)

Key Financial Data - 2007 • Cost of sales – Double up on insurance during period between exchange and completion

• Overheads – Legal and professional fees

• Finance costs – Amortisation of finance costs – Charges relating to repayment of Eurohypo loans – ABN finance re Schwerin & Koenigslutter

Key Financial Data – Q1 2008 Income Cost of sales Gross profit Revaluation of properties Overheads Finance costs Pre tax loss Tax Net loss

€000 1,422 (86) 1,336 (3,871) (67) (1,238) (3,840) 724 (3,116)

Key Financial Data – Q1 2008 • Cost of sales – Non recoverable costs reduced from 8% of rent to 6% of rent • IFRS – Revalue assets – Swaps valued at fair value • IAS 23 – Shareholders loan interest • Interest costs re Koenigslutter and Schwerin

Q1 2008 Ignoring IFRS Accounting and IAS 23 (1) Ignoring IFRS Accounting, IAS 23, non cash expenses and full quarter rent (2)

Income Cost of sales Gross profit Revaluation of properties Overheads Finance costs Pre tax loss

As reported €000 1,422 (86) 1,336

(1) €000 1,422 (86) 1,336

(2) €000 1,467 (89) 1,378

(3,871) (67) (1,238) (3,840)

(67) (1,435) (166)

(67) (1,352) (41)

Twist & Burgdorf Completion

Purchase price Purchase costs (est) Loan (est) Amount paid to date Amount required

Twist Jun/Jul 08 €000

Burgdorf Q4 2008 €000

2,003 170 2,173 (1,702) (342) 129

6,025 512 6,537 (5,121) (630) 786

Twist & Burgdorf Projections

Rent Non recoverable expenses (est) Mortgage interest (est)

Twist €000

Burgdorf €000

153

441

(9)

(24)

(102)

(307)

42

110

Cash Flow 2008 Main assumptions used • • • • • •

Non recoverables 5.5% of rent per year Recoverables 8% of rent per year Service charge debtor paid in Q2 of the following year Overheads €70k per quarter Interest rate for Twist & Burgdorf loans 6% Any shortfall required for the purchase of Twist & Burgdorf will be met by the shareholders or other 3rd party finance • Any effects of taxation have been ignored • There will be no rent CPI increases in 2008 • Service charge income will remain constant

Cash Flow 2008 Income

Rent Service Charge Bank interest

Q1

Q2

Q3

Q4

€000

€000

€000

€000

1,419

1,477

1,502

1,612

77

205

77

77

3

2

2

2

Inflow re acquisitions

1,831

Repayments

5,907

61 1,499

3,576

1,582

7,600

Cash Flow 2008 Expenditure

Q1

Q2

Q3

Q4

€000

€000

€000

€000

78

81

83

89

114

117

117

117

70

70

70

70

1,480

1,034

1,049

1,123

334

334

334

334

Capital repayments

80

80

80

80

Property purchases

1,370

3,564

682

683

4,209

5,963

Non recoverable expenses Recoverable expenses Overheads Mortgage interest Other interest

Trade creditors

5,907 1,733

7,720

Cash Flow 2008

Inflows Receipts Cash balance b/f Deficit for the quarter Cash balance c/f

Q1

Q2

Q3

Q4

€000

€000

€000

€000

1,499

3,576

1,582

7,600

(4,209)

(5,963)

(1,733)

(7,720)

5,774

3,064

677

526

(2,710)

(2,387)

(151)

(120)

3,064

677

526

406

Cash flow 2009 –

An average projected quarter

Projected cash profit and loss account (1)

Rent Bank interest Service charge Average service charge debtor Non recoverable expenses Recoverable expenses Overheads Capital repayments Interest payments

(1) €000 1,613 2

€000 1,613 2 77 40 (89) (117) (70) (80) (1,456)

(1,456)

(80)

0

(89) (70)

Financial Covenants Duisburg

Woellstein

• Interest cover – Minimum – Actual

145.00 151.70

120.00 125.43

• Loan to value – Maximum – Actual

85.00% 80.55%

85.00% 82.87%

Bond Payments • Interest payments – €620k per half year

• Capital repayments – €2.3m – 1st repayment due 30 April 2010 – Repayment could be met by: • Refinance of properties • Sale of assets • Raising additional equity

Questions

Contact details

• Elliot Fidler – [email protected] – +44 161 836 6990