We have prepared financial projections for a one-bedroom apartment with a
purchase price of Stg£343,100 and a two-bedroom apartment with a purchase price of Stg£489,400. Our projections are based on the following assumptions:

• The monthly rental income for a one-bedroom apartment is Stg£350 per
week, and income for a two-bedroom apartment is Stg£500 per week.
• The letting fee is estimated to be 14.1% of the rental income (12% + Vat
@17.5%).
• The service charge is assumed to be Stg£1,800 per annum for a one
bedroom apartment and Stg£2,500 for a two bedroom apartment. Please note
that these figures are indicative only.
• Rental income grows by 3% per annum.
• The interest-only loan equals 75% of the purchase price. The loan interest
rate is 6.00%.
• Capital values grow by 3% per annum.
• Our projections consist of a cash flow statement for 10 years and an estimate
of the net property value each year for 10 years for the apartments. Our
projections are contained on two pages in Appendix I.

Please note the following:
Stamp Duty is not included in the purchase price.*
Furnishing the apartment is not included in the purchase price.
Legal fees are not included in the price (estimate Stg£1,700).

* (One-bedroom 3% Stamp Duty)
* (Two-bedroom 3% Stamp Duty)
Please also note our projections are based on current rental levels and interest rates. Rental levels and interest rates may be different upon the expected completion date in spring 2008. In addition, as is the norm with all new developments, investors should be aware that rental levels are generally soft during the first 12-15 months, and investors should be aware that their property may lie vacant for several months after completion.

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