Current Market Conditions

1. Introduction • UK Property • Fundamentals • Strategy • Current conditions • Examples • Financing • Conclusions • Prices have softened for the last year and have now picked up • First 6 months • Nationwide - London highest growth rate in UK • Primary – more than 7% growth • Secondary – very strong • Yields = 5.5% Victorian and 4.5% growth annually • Ex local – 6.6% Current Market Conditions

2. Introduction • UK Property • Fundamentals • Strategy • Current conditions • Examples • Financing • Conclusions Current Market Conditions If such trends continue, The average cost of a house in England will break through the £300,000 mark in the next five years, research suggests. Prices will near the half a million mark in London by 2012, from the current average of £318,864. Even in regions traditionally regarded as cheaper - such as the North West and Yorkshire - average prices will break through the £200,000 level. National Housing Federation (NHF)

3. Introduction • UK Property • Fundamentals • Strategy • Current conditions • Examples • Financing • Conclusions • “I never have the faintest idea what the stock market is going to do in the next 6 months, or the next year, or two.” • Warren Buffet What will happen next?

4. Introduction • UK Property • Fundamentals • Strategy • Current conditions • Examples • Financing • Conclusions • Compared with other asset classes, London property is still an attractive investment • Perfect timing is something that can only be know with hindsight • Staying out can be as costly as going in • Done properly and seen over the long term it should be a low risk investment Missed the boat or perfect timing?

5. Introduction • UK Property • Fundamentals • Strategy • Current conditions • Examples • Financing • Conclusions Foreign Currency Hedge

6. Introduction • UK Property • Fundamentals • Strategy • Current conditions • Examples • Financing • Conclusions • Vogue1 - Zone 1 – Algate East – 10 minute walk to Liverpool Street and in the hub of the financial district • Priced - £349 950 - £700 000 • Completion – May to August 2008Belmont Park – Zone 2 – Tulse Hill • Priced £290 000 for 2 bedroom apartment • Slough Central – Slough – 20 minutes from Paddington and central London • Priced £172 255 - £250 000 • Fractional Ownership -Chiswell Street, The City, London • £110,250 to £125,500 for a quarter share in hotel room Examples

7. Introduction • UK Property • Fundamentals • Strategy • Current conditions • Examples • Financing • Conclusions Vogue1

8. Introduction • UK Property • Fundamentals • Strategy • Current conditions • Examples • Financing • Conclusions • Development • 44 unit development over 7 floors • Yield – 5% to 5.3% • Price per sqm – £680/sq ft or £7,200/m2 • Very high quality of internal finish – include wood, chrome and porcelain • 9 - 12 month lead time allowing good capital growth • Positioned in the heart of London’s ‘Rag’ district • Affordable Housing separate to the development with different entry points • Video entry to flats • Urban myth kitchens and fitted wardrobes with S/S Siemens appliances, stone composite kitchen tops, under unit lighting • Ceramic tiles to kitchen and bathroom. Underfloor heating and heated towel rails • Communal roof garden Vogue1

9. Introduction • UK Property • Fundamentals • Strategy • Current conditions • Examples • Financing • Conclusions • Area • Easy access to the city, Liverpool Street is in walking distance • Services by District and Hammersmith and City underground lines • Brick lane in walking distance – boasting diverse choice of Asian restaurants • Abundance of pubs, galleries and other restaurants • Old Street in walking distance with its new gastro strip • St Katherine’s Dock and Butlers Wharf are also in walking distance and are popular riverside entertainment areas Vogue1

10. Introduction • UK Property • Fundamentals • Strategy • Current conditions • Examples • Financing • Conclusions Vogue1

11. Introduction • UK Property • Fundamentals • Strategy • Current conditions • Examples • Financing • Conclusions • Developer • Established for 30 years, build 600 units a year • Privately owned company with turnover in excess of £205million/yr • High quality of finish • Cutting edge design teams, interior decorators and architects employed • Renowned for attention to detail and top customer care Vogue1

12. Introduction • UK Property • Fundamentals • Strategy • Current conditions • Examples • Financing • Conclusions Belmont Park

13. Introduction • UK Property • Fundamentals • Strategy • Current conditions • Examples • Financing • Conclusions • Developement • 6 Superb apartments in London • Market price £290,000 • Monthly rentals up to £1200 • Rental yield 5.5% • Landscaped communal gardens • Video entry system • Completion September 2007 Belmont Park

14. Introduction • UK Property • Fundamentals • Strategy • Current conditions • Examples • Financing • Conclusions • Area • Situated within easy reach of the funky shops, bars and restaurants of Brixton as well as the beautiful, rolling open spaces of Brockwell Park. • Local transport links include Tulse Hill (British Rail) and Brixton Underground Station (Victoria Line) for connections into and out of central London. • Developer • Trojan Asset Management Belmont Park

15. Introduction • UK Property • Fundamentals • Strategy • Current conditions • Examples • Financing • Conclusions Belmont Park

16. Introduction • UK Property • Fundamentals • Strategy • Current conditions • Examples • Financing • Conclusions Slough Central

17. Introduction • UK Property • Fundamentals • Strategy • Current conditions • Examples • Financing • Conclusions • Development • 2 Blocks – 8 stories and 15 stories • 1 & 2 bedroom apartments – 229 units • Section 106 or affordable housing is offsite • 24 x 1 bedroom apartments – huge demand for 1 bedroom units • Completion – Mid 2009 • Less than 1 min from station • Trademark – floor to ceiling windows • Pristine Interiors Slough Central

18. Introduction • UK Property • Fundamentals • Strategy • Current conditions • Examples • Financing • Conclusions • Area • Easy access to the city, 20 min from Paddington • Huge regeneration program • Terminal 5 – 30 000 jobs is in close proximity down the M4 • Developer • London Green and My City Pads – currently got about 30 projects on the go. Slough Central

19. Introduction • UK Property • Fundamentals • Strategy • Current conditions • Examples • Financing • Conclusions Slough Central

20. Introduction • UK Property • Fundamentals • Strategy • Current conditions • Examples • Financing • Conclusions • Chiswell Street, The City, London • £110 000 - £125 000 per fraction • Own one quarter • 6 – 8% return (45% over 8%) • 13 days a year • 70% gearing Fractional

21. Introduction • UK Property • Fundamentals • Strategy • Current conditions • Examples • Financing • Conclusions • 3000 different borrowing options • Asset based lenders • Financing Options • 70% to 85% LTV • Interest only • Offshore structures • See Example brochures for costs and cost breakdown Financing & Procedures

22. Introduction • UK Property • Fundamentals • Strategy • Current conditions • Examples • Financing • Conclusions Conclusions "ver van jou goed, na aan jou skade"

23. Introduction • UK Property • Fundamentals • Strategy • Current conditions • Examples • Financing • Conclusions • Partners: • International Property Solutions • Offices • Cape Town • JHB • Durban • London • 500+ units in the past 4 years • Specialise in foreign investment and especially off plan developments Conclusions

24. Introduction • UK Property • Fundamentals • Strategy • Current conditions • Examples • Financing • Conclusions • Partners: • Conveyancing (Legals) • Breytenbachs • Structures, Foreign Exchange Control, Money Transfers • Lionel Levin & Associates & Rosebank (UK) Limited) • Mortgage Broker • Worldwide Financial Solutions • Management • Bespoke – best of breed Conclusions

25. Introduction • UK Property • Fundamentals • Strategy • Current conditions • Examples • Financing • Conclusions • Thank you • Heath Adamson • Sean Walsh • Brad Allen • Scott Picken • London No = 09 44 208 971 3245 • SA No = 072 575 8719 • JHB Office = 011 4477189 • Cape Office = 021 424 3353 • Email: scott@internationalpropertysolutions.com