ANNOUNCEMENT OF UNAUDITED NAV

INVISTA EUROPEAN REAL ESTATE TRUST SICAF ("IERET" or the "Company")

ANNOUNCEMENT OF UNAUDITED NAV

30 November 2011

Net Asset Value

As at 30 September 2011, the Company's unaudited Net Asset Value calculated using International Financial Reporting Standards and adjusted to add back the change in fair value of the warrants and deferred tax was €0.523 (45.5p) per share, reflecting a decrease of €0.054 or 9.4% over the quarter and 6.3p or 12.2% in Sterling. Over the 12 months to 30 September 2011, the Adjusted NAV per share decreased slightly by 0.8p or 1.8% in Sterling. 

As at 30 September 2011, the unaudited Net Asset Value, calculated under International Financial Reporting Standards, was €0.505 per share.

A breakdown of the unaudited Net Asset Value is set out below:

1 As at 30 June 2011 the net current assets included one property located in Trappes, France which was valued at €20.9 million and was sold in the last quarter (classified as asset held for sale as at 30 June 2011).

2 As at 30September 2011, deferred tax liabilities of €24.9 million, based upon temporary differences at the time of initial recognition arising from transactions treated as asset acquisitions have not been recognised in accordance with IAS 12. The Group has deferred tax assets of €14.2 million which also have not been recognised.

3 Net Asset Value adjusted to add back deferred tax (both current and non-current liabilities) and change in fair value of the warrants from book value

4 Assumes all warrants are exercised at 29p per share and that the fully diluted number of ordinary shares is 289,086,083

5 The NAV for preference shares is equal to the nominal value plus accrued interest divided by the total number of preference shares

The unaudited Net Asset Value incorporates a number of events and key factors during the quarter ended 30 September 2011 including:

·; The sale of two properties, located in Trappes and Vitrolles, France previously valued at €27.4 million as at 30 June 2011;

·; Accessing lower margin financing of 2.25% pa on the Company's senior debt following a reduction in Company borrowings of €30.0 million or €0.12 per share;

·; A decrease in the value of the property portfolio on a like for like basis by 2.03% (€9.3 million or €0.04 per share);

·; A reduction in the marked-to-market valuation of the Company's interest rate swaps of €2.5 million, equating to € 0.01 per share.

·; A movement in the valuation of the preference shares due to fluctuation in the STG/EUR exchange rate fluctuation; this amounted to a loss of €1.1 million or €0.004 per share, as well as a minor movement in the fair value of the warrants of €0.7 million.

The Company's unaudited Net Asset Value figure incorporates the independent property portfolio valuation as at 30 September 2011. The property portfolio will next be valued on 31 December 2011.

Figures converted into sterling assume a EUR per STG exchange rate of 1.1492 as at 30 September 2011.

Property Portfolio

As at 30 September 2011, the Company's property portfolio was valued at €451.1 million and comprised 39 assets across 6 countries. This compares with the property portfolio as at 30 June 2011, which comprised 41 assets valued at €487.7 million in 7 countries. The like-for-like decrease in the property valuation over the quarter (excluding two disposals over the three month period to 30 September 2011) was 2.03%, a decrease of €9.3 million and reflects the marked downgrade in sentiment in Euro zone markets since June 2011.

The Company sold two logistics properties in France located at Trappes and Vitrolles having a total value of €27.4 million, with net proceeds from the sales being used to reduce borrowings and reimburse the Credit Foncier senior debt facility in full.

As at 30 September 2011, the Company's portfolio generated gross income of €36.8 million per annum, representing a Gross Income Yield ("GIY") of 8.16% and a Net Initial Yield ("NIY") of 7.53%. The portfolio had a void level of 10.2% as at 30 September 2011 which increased by 4.10% over the quarter as a result of sales of fully let investments and tenants vacating three properties in France and the Netherlands.

The portfolio's credit rating as measured by the Investment Property Databank's M-IRIS credit analysis system in October 2011 was 73 out of 100, which is classified in the "low to medium risk band". 

As at 30 September 2011 the portfolio composition was as follows:

Sector Weightings

*Percentage of aggregate asset value as at 30 September 2011

Country Weightings

*Percentage of aggregate asset value as at 30 September 2011

Top 10 Properties

*Percentage of aggregate asset value plus cash as at 30 September 2011

Top 10 Tenants

* Percentage of aggregate gross rent as at 30 September 2011

Market Context

Signs of economic recovery in the first half of 2011 in the Euro zone, which had supported the region's property markets over the past year, began to lose some of its momentum over the summer and as a result GDP growth forecasts for the region have been reduced in recent months.

Within the property market, the 'prime' sub-markets have, according to CB Richard Ellis, experienced rental growth of 2.7% in the 12 months to Q3 2011 (source: CB Richard Ellis Prime Eurozone Index). By contrast, rents in secondary and tertiary sub-markets generally remain weak as a result of high rates of availability in older stock. Overall, investors and tenants are cautious and this has constrained the volume of property leasing and investment activity, particularly in countries on the Eurozone's Periphery.

Property investment turnover has held up best in Europe's most liquid markets (Germany and France) and its strongest economies (Sweden and Central & Eastern Europe), which together accounted for 73% of investment turnover in the 12 months to Q3 2011, compared to a long-term average of 64% (source: CB Richard Ellis, Continental European investment turnover). By contrast, in Benelux, Italy and Iberia, where economic growth is most at threat from public and private sector deleveraging, property investment volumes in the year to Q3 2011 accounted for only 16% of the European total (compared to a long-term average of 22%).

Events in the European sovereign debt market since the end of Q3 2011 have underlined that a sovereign default within the Euro zone remains the most significant risk to economic growth and by extension to future performance in the property market. While the exact consequences of such an event are difficult to predict, the immediate damage to economic growth would inevitably lead to heightened risk aversion among investors, emphasising the need to protect rental income through tenant retention.

Asset Management Results

During the quarter, the Company successfully completed the disposals of two logistics warehouses in France, located in Trappes and Vitrolles. The total sale consideration of €27.3 million was 0.4% below the June 2011 valuation. Asset management initiatives were completed on both assets prior to sale, enabling the Company to maximise capital value and equity return on disposal. Total equity proceeds of €12.6 million were generated which was used to pay down debt and contributed to achieving an LTV ratio below 65% and a reduction in loan margin from 2.50% to 2.25% per annum.

Executing business plan initiatives to maximise income return and stabilise or improve capital value has been core to preserving Group earnings as well as positioning assets for disposal. During the last quarter, the Company negotiated three leases with new and existing retail tenants in Germany, including undertaking refurbishment and development projects on two sites. These negotiations resulted in securing an average lease term of 8.6 years, leasing 750 sqm of additional retail space and generating an additional €78,000 pa of gross rent.

A further 16.5% of portfolio income is under negotiation with existing tenants, mainly in France and Germany, for an average fixed lease length of 7.5 years. Heads of terms have been agreed on two leases representing 28,774 sqm of warehouse in France and 3,744 sqm of offices in Brussels.

Borrowings

As at 30 September 2011, the Company had drawn down a total of €298.0 million of senior debt in respect of its €359.3 million facility with the Bank of Scotland. In addition, the Company had cash balances of €36.2 million (excluding tenant deposits of €4.2 million and escrow accounts of €3.6 million) at that date, giving a net debt position of €261.8 million.

In July 2011, the proceeds from the sale of the logistics assets in Trappes, Paris and Vitrolles, France plus €4.6 million of cash from the Company's balance sheet were applied to paying down a total of €20.6 million of debt with the Bank of Scotland and all of the outstanding €9.5 million of debt with Credit Foncier. As at the Interest Payment Date on 25 July 2011 therefore, and based on valuations of the property portfolio as at 30 June 2011, the Loan To Value ("LTV") ratio was 64.99% and accordingly the margin on the debt reduced from 2.50% to 2.25% pa. This reduced margin will apply at least until the next Interest Payment Date on 25 January 2012 at which point the LTV will be tested using property valuations as at 31 December 2011.

The Company's gross Loan To Value ("LTV") ratio as at 30 September 2011 was 66.1% and the net debt LTV was 58.0%. As at 30 September 2011, the Company's gross LTV under the Finance Documents with the Bank of Scotland was 64.7%, against an LTV covenant of 82.5% in 2011.

All debt is fully hedged against changes in European interest rates until December 2013, giving a total interest cost of 6.29% per annum at current LTV levels.

For further information, please contact:

Citco REIF Services (Luxembourg) SA

Marta Kozinska +352 47 23 23 267

Hudson Sandler

Michael Sandler +44 20 7796 4133