Investment Update

27 January 2014

Duet Real Estate Finance Limited

(the "Company")

Investment Update

The board of the Company is pleased to announce that the Master Fund has fully realised a further three of its mezzanine loan investments, earning returns in line with its investment criteria. The three investments realised are Loan 1 (secured by a retail property in Denmark), Loan 3 (secured by eight hotels in Germany) and Loan 8 (secured by an office and light industrial park in France).

Total proceeds realised by the Master Fund include all amounts outstanding under the loan agreements, of which the Company's share totals £10.0 million, equivalent to 13.35 pence per share.

The Company intends 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, alongside its next quarterly dividend, as a return of capital via an issue of redeemable B shares to existing shareholders and immediate subsequent redemption of those shares pro rata to their holding at the time of the relevant issue.

The Company will issue a dividend, net asset value and investment update in February 2014. It also intends to announce details of the return of capital at the same time.

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