Group 5 Hired as Investment Manager

4 October 2010

South African Property Opportunities plc

Group 5 Hired as Investment Manager

South African Property Opportunities Plc ("SAPRO") is pleased to announce that it has selected Group 5 Property Development (Pty) Limited ("Group 5") as its new investment manager. Group 5's parent is a listed Johannesburg based company. Group 5 is one of the largest construction and materials manufacturing groups in southern Africa, offering construction and engineering expertise to deliver all aspect of infrastructural and real estate projects, including concept development and design. Group Five has played a major role in the development of southern Africa's infrastructure with a national and international reputation (www.groupfive.co.za). Group 5 will commence working alongside SAPRO's current investment manager on 4 October 2010 and will assume sole management responsibilities on 20 October 2010 when SAPRO's existing investment management agreement expires.

The key terms of the investment management agreement are an annual management fee of £500,000, a performance fee based on cash proceeds from sale, compared to the open market valuations, that ranges from nil to 10% percent depending on the amount realized, and SAPRO's payment of brokerage commissions in accordance with industry standards in connection with any sale. The contract is terminable without any penalties on six months' notice during the first year and on three months' notice thereafter. Group 5 will also have the right to participate (on arms' length market terms) as an equity investor in any asset that SAPRO decides to develop.

David Hunter, SAPRO's Chairman noted: "After a lengthy search, we are delighted to have retained a company with the stature and reputation of Group 5. We have negotiated a contract that is heavily performance weighted and represents a considerable savings over the current investment management fee. We expect the contract will incentivise Group 5 to accomplish the objectives set forth in our 19 July 2010 strategic review announcement. They will commence actively marketing those assets falling into the orderly sale category and taking such steps as are warranted to improve the value of those assets in the interim hold category. We will provide further updates as matters progress."

For further information, please contact:

Paul Fincham

Matrix Corporate Capital LLP

+44 (0)20 3206 7175

 Tim McCall/Lucinda Kemeny

Hogarth

+44 (0)20 7357 9477