NAV AND INTERIM PREFERENCE SHARE DIVIDEND

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

ANNOUNCEMENT OF UNAUDITED NAV AND INTERIM PREFERENCE SHARE DIVIDEND

24 November 2010

Net Asset Value

As at 30 September 2010, 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 €0.538 (46.4p) per share, reflecting an increase of €0.002 or 0.37% over the quarter and 3.0p or 6.7% in Sterling. The unaudited Net Asset Value, calculated under International Financial Reporting Standards, was €0.519 per share.

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

1 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

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

3 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 2010 including:

·; The property valuation increased by €5.3 million or €0.02 per share. This is made up of an increase in the value of the existing portfolio on a like for like basis of 0.16% in the quarter (equating to €0.8 million), the sale of a property in Cabries, France previously valued at €2.5 million and the purchase of the committed property in Girona, Spain which added €7.0 million to the portfolio valuation.

·; A reduction in the marked-to-market valuation of the Company's interest rate swaps of €2.3 million, equating to €0.01 per share.

·; A decrease in current assets of €12.9 million or €0.05 per share mainly reflecting the use of cash to fund the purchase of the property in Girona, Spain for €10.4 million (excluding €1.6 million of refundable VAT) prior to drawing down €5.0 million of senior debt on 12 October 2010.

·; A decrease in senior debt of €1.34 million or €0.01 per share following proceeds being applied from the sale of the property in Cabries, France (however €5.0 million of senior debt was subsequently drawn down in respect of the Girona asset on 12 October 2010).

·; A movement in the valuation of the preference shares due to fluctuation in the GBP/EUR exchange rate fluctuation; this amounted to a gain of €2.0 million or €0.01 per share, as well as a minor movement in the fair value of the warrants of -€0.2 million.

The Company's unaudited Net Asset Value figure incorporates the independent property portfolio valuation as at 30 September 2010. The property portfolio will next be valued on 31 December 2010.

Figures converted into sterling assume a EUR per STG exchange rate of 1.1610 as at 30 September 2010.

Property Portfolio

As at 30 September 2010, the Company's property portfolio was valued at €515.7 million and comprised 43 assets. This compares with the property portfolio as at 30 June 2010, which comprised 43 assets valued at €510.4 million. The like-for-like increase in the property valuation over the quarter (excluding one acquired and one disposed of asset over the three month period to 30 September 2010) was 0.16%, an increase of €0.8 million. In sterling terms, however, the portfolio valuation increased by 6.5% or £26.6m over the quarter. The Company sold one logistics property in Cabries, France for €2.7 million during the quarter, with net proceeds from the sale used to pay down senior debt.

As at 30 September 2010, the Company's portfolio generated gross income of €42.1 million per annum, representing a Gross Income Yield ("GIY") of 8.17% and a Net Initial Yield ("NIY") of 7.56% (these yields exclude current voids). The portfolio had a void level of 8.4% as at 30 September 2010 which will reduce to 7.5% over the next four months as a result of the successful letting of office accommodation in Cergy and Grenoble, France.

The portfolio's credit rating as measured by the Investment Property Databank's M-IRIS credit analysis system in October 2010 was 77 out of 100, which is classified in the "low risk band".

As at 30 September 2010 the portfolio composition was as follows:

Sector Weightings

*Percentage of aggregate asset value as at 30 September 2010

Country Weightings

*Percentage of aggregate asset value as at 30 September 2010

Top 10 Properties

*Percentage of aggregate asset value plus cash as at 30 September 2010

Top 10 Tenants

* Percentage of aggregate gross rent as at 30 September 2010

Market Context

The resumption of growth in the European economy over the past twelve months, reflected by a 1.9% annual increase in GDP during Q3 2010 (source: Eurostat), is showing benefits for the commercial property markets. According to CB Richard Ellis, capital values in Continental Europe have been broadly stable since the first quarter (source: European Valuation Monitor Q3 2010) and in some countries have even started to increase, particularly at the prime end of the market. By contrast, market values remain under pressure in southern Europe and Ireland, where concerns about high levels of sovereign debt culminated during November in the Irish government requesting financial assistance from the International Monetary Fund and European Union. Overall, however, the Company's high exposure to less volatile economies in the Eurozone 'core' has supported an improvement in the performance of its property portfolio over the past year.

Looking forward, the consensus view is that economic growth could moderate in the next twelve months as the positive effects of fiscal stimulus wear off. Under these conditions, we expect property leasing markets to remain challenging in 2011 as tenants continue to adapt to a period of austerity. Capital value growth driven by yield compression is expected to slow and with limited prospects for widespread rental growth until economic growth picks up more strongly, property performance is expected to be dominated by the stability and level of income returns.

Against this background, we expect the risk-adjusted performance profile of Continental European property income to be attractive for investors, especially in sectors such as logistics and out-of-town retail that are typically characterised by above-average income returns.

We expect valuation performance to become increasingly divergent in favour of those countries and sectors that are likely to see the highest levels of investment activity. France and Germany remain by far the largest and most liquid property markets in Continental Europe, and we expect investors seeking a combination of secure income and opportunities to add value through asset management to focus on these markets over the medium term. This is consistent with the Company's property strategy to hold 85% of its assets in these two core markets.

Active Asset Management

The Company disposed of one asset in Cabries, France during the quarter for €2.8 million which was 10% above the June 2010 valuation. Post quarter end, an additional asset was sold in Entraigues, France for €0.5 million, a price 14.6% above the September 2010 valuation. Sales will continue to be undertaken where they can realise additional value for the Company. The intention is to use sale proceeds to pay down debt with a view to achieving a target LTV of 60%.

The committed asset in Girona, Spain was purchased during the quarter following the conclusion of successful due diligence. The total investment volume was €10.4 million (excluding recoverable VAT of €1.6 million). The asset provides 13,200 sqm of logistics accommodation and is fully let to an international third party logistics company on a lease expiring in 2015 at rent of €0.8 million per annum. Based on the valuation as at 30 September 2010, the purchase is accretive to current earnings as it generates an income return of in excess of 10% however given the relatively high strike price agreed in 2005, the purchase has had a negative mark to market effect on the Company's NAV.

Maximising the earnings performance of the Company is central to the property investment strategy and during the last quarter a further 2,051 sqm of vacant office space in France has been agreed to be leased over the next four months, generating like for like earnings growth of €0.4 million per annum. As a result, vacancy will reduce from 8.42% as at 30 September 2010 to 7.53%.

In addition to leasing vacant accommodation, post quarter end the Company re-structured the lease on 16,000-sqm of logistics accommodation in Poland by extending the lease term by 4.2 years and providing for the potential for future expansion. The Company is also in negotiations to improve the quality and duration of revenue on properties currently generating €9.0 million (21.4%) of gross rental income with heads of terms having been agreed on €2.8 million of that income, representing 24,520 sqm. Should all lease negotiations be successful the weighted average lease length to expiry would improve from 6.22 years as at 30 September 2010 to 6.68 years.

Finance

As at 30 September 2010, the Company had drawn down a total of €343.7 million of senior debt in respect of its €359.3 million facility with the Bank of Scotland and its €12.0 million facility with Credit Foncier. In addition, the Company had cash balances of €34.3 million (excluding tenant deposits of €4.5 million) at that date, giving a net debt position of €309.4 million. On 12 October 2010 the Company drew down €5.0 million of senior debt in respect of the Girona property which replenished cash to a pro-forma amount of €39.3 million as at that date.

The Company's gross Loan To Value ("LTV") ratio as at 30 September 2010 was 66.6% and the net debt LTV was 60.0%. This includes the valuation of Girona but does not include the debt drawn down on 12 October 2010. The LTV increases to 67.6% after inclusion of the debt drawn down for Girona. As at 19 October 2010 the Company's gross LTV under the Finance Documents with the Bank of Scotland was 67.9%, also including the Girona investment, against an LTV covenant of 85%.

All debt is fully hedged against changes in European interest rates until December 2013, giving a total interest cost of 6.58% per annum at current LTV levels. This cost of financing significantly reduces the Company's net earnings and efforts will continue so as to take advantage of any opportunities that may exist to access lower borrowing costs.

Investment Manager

On 12 October 2010, Invista Real Estate Investment Management Holdings plc ('Invista PLC'), parent company of Invista Real Estate Investment Management Limited (the 'Investment Manager'), announced that material fund management contracts run for Lloyds Banking Group PLC ('the HBOS Contracts') had been terminated on 12 months' notice. These contracts represented £2.4 billion of Invista's total assets under management of £5.4 billion and approximately £5.3 million of total revenue of £13.7 million for the six months to 30 June 2010.

Invista PLC also announced that without the revenue generated from the HBOS Contracts, the interests of both clients and shareholders of Invista PLC would be best served through an orderly realisation of value from Invista's assets, including the Investment Manager's asset management business, with the proceeds of such realisations returned to shareholders in due course.

The Company also issued a statement on 12 October 2010, stating that the Board of the Company has received assurances from Invista regarding the continuing quality of the investment management services to be provided. The Board will take all necessary steps to secure the stability and continuity of the management of the Company's assets by the current team, for which the Board has a high regard. It is therefore engaging proactively in discussions with Invista PLC in order to achieve an outcome in the best interests of the Company's shareholders.

The Board will make a further announcement if any developments occur that are material to the Company's shareholders.

Strategy

The Company intends to continue to pursue its strategy of reducing borrowings to the target level of 60% LTV. Lower margin financing is available at 65% LTV which will be of meaningful benefit to earnings. It is expected that this could be achieved through continuing to realise profits from sales and/or using surplus cash that is currently held as a strategic asset on the balance sheet.

The Board is committed to resuming the payment of dividends on ordinary shares as soon as possible, but wishes to ensure that any such dividend is sustainable over the long term. During 2010 good progress has been made in working through the strategic objectives of the Company, but the Board remains cautious about economic conditions and their impact on occupational markets and thus the earnings of the Company. The decision to resume dividends will be linked to the Company's performance, and its success in further reducing borrowings and debt service costs.

For further information, please contact:

Invista Real Estate Investment Management

Tony Smedley/Chris Ludlam +44 20 7153 9369

Financial Dynamics

Dido Laurimore/ Olivia Goodall +44 20 7831 3113