For immediate release
26 February 2015

Statement re share price movement

Dear Shareholders,

Over the last financial year, we have sold the remainder of our Riva asset and our Bodrum asset, both for approximately book value, as well as nineteen Alanya units. Net of broker commissions our Turkish subsidiaries received a total of $94.33m for Riva (approximately £58.44m), $27.93m for Bodrum (approximately £17.31m), and €1.95m for the Alanya units (approximately £1.54m). Of the approximately £58.44m received for Riva, £8.58m was distributed on 7 February 2014, £27m was distributed on 27 May 2014, £12.84m was distributed on 26 September 2014 and £18.92m was distributed on 16 January, 2015. The January distribution comprised proceeds from both the Riva and Bodrum sales.

As of mid-December, 2014, one of our Turkish subsidiaries continued to hold eleven Alanya holiday units with an appraised value of approximately £950k. We are exploring various ways of monetizing the remaining Alanya units so we can close the Turkish subsidiary that owns those units. Given various constraints affecting the sale of those units, shareholders should consider that the Company may not receive the appraised value of those units. In calculating the amounts ultimately distributable, shareholder should also take into consideration that the Company will likely incur costs, that may include legal and accounting fees, taxes and legal claims, which are not now quantifiable.

In addition to the Alanya assets, the Company and its Turkish subsidiaries hold cash currently worth approximately £8.4m. In calculating the amounts ultimately distributable, shareholders should take into consideration that the Company will incur costs and that shareholders may only receive a portion of the Company’s net asset value. These costs will include legal and accounting fees, and taxes. The costs may also include currency translation losses and payments for legal claims. The net amount that shareholders may receive is not now quantifiable.

The process of up streaming sale proceeds from our Turkish subsidiaries to their corporate parent also involves legal and accounting complexities and pursuant to Turkish law takes time. We are conscious that our shareholders look forward to receiving sale proceeds expeditiously in accordance with the Company’s stated policy of returning excess capital to shareholders. I can assure you we will continue to return excess cash to our shareholders as quickly as practicable in accordance with governing law.

For further details, please contact:

N+1 Singer     020 7496 3000
James Maxwell
Ben Griffiths

Company Secretary               01534 504 700
Vistra Fund Services Limited