Investment Update

19 December 2014

Duet Real Estate Finance Limited

("DREF" or the "Company")

Investment Update

The board of the Company is pleased to announce that the Master Fund has realised its United Kingdom and Netherlands Hotels investment (Loan 6), following a refinancing of the underlying portfolio, earning returns in-line with its investment criteria. The Company's share of proceeds realised by the Master Fund totals £10.4 million, equivalent to 14.14 pence per share.

The Company intends, in January, to distribute its share of the realised proceeds pertaining to capital received from the Master Fund, after the deduction of costs and expenses of this distribution along with amounts to be withheld for working capital and for any continuing purchases of the Company's own shares under the Buyback Programme, as a return of capital via an issue of redeemable B shares to existing shareholders and subsequent redemption of those shares pro rata to their holding at the time of the relevant issue.

The Company will issue further details concerning the return of capital in January 2015. Further details of the capital return mechanism are summarised in the Company's Prospectus, which may be accessed via the Company's website (www.dreflimited.com).

For further information, please contact:

DRC Capital LLP +44 (0)20 7042 0600

Dale Lattanzio

Cyrus Korat

Oriel Securities Limited +44 (0)20 7710 7600

Neil Winward

Mark Bloomfield

Tunga Chigovanyika