Interim Management Statement

15 May 2012

Duet Real Estate Finance Limited

("DREF" or the "Company")

NAV and Dividend for the quarter to 31 March 2012

and Interim Management Statement

This interim management statement covers the period from 31 December 2011 to 31 March 2012 together with relevant information up to the date of publication of this statement.

NAV and Dividend

The board of DREF is pleased to announce a dividend of 1.0 pence per Ordinary Share for the quarter to 31 March 2012, payable on 15 June 2012 to those Shareholders on the register on 25 May 2012.

In addition, the Company is able to report an unaudited NAV as at 31 March 2012 of 97.8 pence per Ordinary Share.

Material Events and Transactions

During the period, the Master Fund made a further investment of €22.1 million in a mezzanine loan, secured by a portfolio of 45 retail properties located throughout Germany. The portfolio has a weighted average remaining lease term of 12 years and physical occupancy of 93%. The projected IRR for the loan is 13.4%, with a Loan to Value ("LTV") of 72%.

At the end of Q1 2012, the Master Fund was 53% deployed with 9 investments totalling £159.6 million, with an expected average IRR of 14.7% and an average LTV of 65.7%. The Investment Manager is in advanced discussions on a pipeline of 10 opportunities totalling £274 million, with 3 deals in execution phase.

The Company received distributions from the Master Fund of £0.633 million during the period and paid a dividend of 1.0 pence per Ordinary Share on 23 March 2012, resulting in a cash dividend of £0.759 million.

Deed of Novation

The investment team led by Dale Lattanzio, Cyrus Korat and Rob Clayton (the "Investment Team"), that provides investment advice to the Company and Master Fund, has formed DRC Capital LLP ("DRC") an independent investment adviser and asset manager dedicated to the real estate debt sector in Europe.

DRC and Duet Private Equity Limited ("DPEL") formed ERED Investment Adviser LLP ("ERED"), a joint venture through which the Investment Team will continue to provide investment advice to the Company and Master Fund.

On 11 May 2012, the Company, DPEL and ERED completed a deed of novation in relation to the Investment Advisory Agreement entered into between the Company and DPEL, dated 18 February 2011 (the "Investment Advisory Agreement"). Pursuant to the deed of novation, the Investment Advisory Agreement remains in full force and effect with ERED assuming the role of investment adviser to the Company in the place of DPEL.

Financial Position

The Company had invested £44.034 million of capital into the Master Fund as at 31 March 2012 and had current assets of £31.213 million which is available for investment in the Master Fund

General Financial Information

Investments held by Master Fund

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