Net Asset Value(s)

CLOSE HIGH INCOME PROPERTIES PLC (the "Company")

ANNOUNCEMENT OF NAV

The board of Close High Income Properties PLC advises that as at close of business on 30 June 2010, the unaudited net asset value per Ordinary Share of 1 penny each of the Company was 32.06 pence (31 May 2010: 31.79 pence). This represents an increase of 0.84 per cent per Ordinary Share.

The property portfolio was valued at 30 June 2010 by DTZ Debenham Tie Leung Limited ("DTZ"). There has been an average increase in valuation from 31 March 2010 of 0.46 per cent across the Company's property portfolio. This represents an increase in valuation of £0.52 million to a total valuation for the property portfolio of £112.25 million (31 March 2010: £111.73 million). A letter from DTZ containing further details of the valuation of the property portfolio, as required under Rule 29 of the Takeover Code in connection with the fundraising proposals announced by the Company on 13 July 2010, is shown in Appendix 1 below.

During the month the market value of the first interest rate swap liability entered into by the Company decreased by £0.27 million to a liability of £1.59 million (31 May 2010: liability of £1.86 million). The market value of the second interest rate swap liability entered into by the Company increased by £0.02 million to a liability of £0.27 million (31 May 2010: liability of £0.25 million). The market value of the third interest rate swap liability entered into by the Company increased by £0.05 million to a liability of £0.65 million (31 May 2010: £0.60 million). The total decrease in the Company's interest rate swap liabilities during the month represented a decrease in net asset value of £0.20 million to a total liability of £2.50 million (31 May 2010: total liability of £2.70 million).

Whilst the total market valuation of the interest rate swaps is currently in deficit, their value will run to zero over the term of the contracts. The swaps continue to provide a fixed rate of interest to the Company. It is not the intention of the Company to dispose of the swaps and realise the deficit as the Company continues to benefit from fixed rate funding.

There were no property sales completed during June 2010.

The net asset value is calculated under International Financial Reporting Standards ("IFRS").

The property portfolio will next be valued by an external valuer at 30 September 2010 and the net asset value per share as at 31 July 2010 will be announced in August 2010.

For further information contact:

Steven Oliver

Close Investments Limited

020 7426 4000

Appendix 1 - Letter from DTZ

Dear Sirs

Close High Income Properties Plc ("CHIP" or "The Company")

PROPERTY PORTFOLIO VALUATION AS AT 30 JUNE 2010

In accordance with your instructions to undertake quarterly valuations, we have inspected the investment properties referred to in the Schedule attached to this letter, in order to advise you of our opinion of their Market Values as at 30 June 2010.

Purposes of Valuation

We understand that this Valuation Letter and Schedule are required under Rule 29 of the City Code on Takeovers and Mergers ("the City Code") in connection with the Circular sent to CHIP shareholders on 13 July 2010 ("the Circular") and that this Valuation Letter will be released alongside CHIP's statement of net asset value as at 30 June 2010, to be issued prior to the EGM to consider the proposals outlined in the Circular (the "Purpose of this Letter").

We hereby consent:

(i) to the publication of this Valuation Letter alongside CHIP's statement of net asset value as at 30 June 2010; and

(ii) to the Valuation Letter being made available for inspection in accordance with the requirements of Rule 26 and Rule 29 of the City Code on Takeovers and Mergers.

We have undertaken this instruction as an Independent Valuer in accordance with the requirements of Rule 29 of the City Code.

The Properties

As listed in the Schedule of Capital Values set out below.

Instruction

To value on the basis of Market Value the Properties as at the valuation date in accordance with your standing instructions.

Valuation Date

30 June 2010

Capacity of Valuer

External

Market Value

£112,250,000

We have valued the Properties individually and no account has been taken of any discount or premium that may be negotiated in the market if all or part of the portfolio was to be marketed simultaneously, either in lots or as a whole.

Our opinion of value is based upon the Valuation Assumptions and Definitions attached.

We are of the opinion that the Market Value of the properties has not significantly changed between the valuation date and the date of this letter.

Compliance with Valuation Standards

The valuations have been prepared in accordance with the RICS Appraisal and Valuation Standards. The property details on which each valuation is based are recorded in this letter.

Assumptions

Although this letter should be read in conjunction with all the information previously provided, we would point out that we have made various assumptions as to tenure, letting and town planning; and the condition and repair of buildings and sites, including ground and groundwater contamination. These are as attached.

If any of the information or assumptions on which the valuation is based are subsequently found to be incorrect then the valuation figures may also be incorrect and should be reconsidered.

Valuer

The properties have been valued by a valuer who is qualified for the purpose of the valuation in accordance with the RICS Appraisal and Valuation standards ("The Red Book").

In accordance with UKPS 5.4 of The Red Book we have made certain disclosures in connection with this valuation instruction and our relationship with the Company. These are included below.

Disclosures required under the provisions of UKPS 5.4

Name of signatory

Jeremy Payne has been the signatory of Valuation Reports provided to the Company for the same purpose as the purpose of this Valuation Report for a continuous period of 2 years. DTZ Debenham Tie Leung has been carrying out this valuation instruction for the Company for a continuous period since 2003.

DTZ's relationship with client

DTZ has had a long association with the Company in an advisory capacity. We confirm that the Director responsible for the valuation has formed an independent view of the property valuations on behalf of the Company.

Fee income from the Company

DTZ Debenham Tie Leung is a wholly owned subsidiary of DTZ Holdings plc (the "Group"). In the Group's financial year to 30 April 2010, the proportion of total fees payable by the Company to the total fee income of the Group was less than 5%.

Confidentiality and disclosure

The contents of this Valuation Letter and Schedule may be used only for specific purpose to which they refer. Consequently, and in accordance with current practice, no responsibility is accepted to any party in respect of the whole or any part of their contents other than in connection with the Purpose of this Valuation Letter. Before this Valuation Letter, or any part thereof, is reproduced or referred to, in any document, circular or statement, and before its contents, or any part thereof, are disclosed orally or otherwise to a third party, the valuer's written approval as to the form and context of such publication or disclosure must first be obtained. Such publication or disclosure will not be permitted unless, where relevant, it incorporates the Special Assumptions herein. For the avoidance of doubt such approval is required whether or not DTZ Debenham Tie Leung Limited is referred to by name and whether or not the contents of our Valuation Letter are combined with others.

Yours faithfully

Jeremy D Payne MRICS

Director

For and on behalf of

DTZ Debenham Tie Leung Limited

SCHEDULE OF CAPITAL VALUES

Properties held of Investment

Assumptions and definitions

Valuation conditions and Assumptions

These are the conditions and Assumptions upon which our valuations and reports are normally prepared and form an integral part of our appointment together with our related Engagement Letter and DTZ Terms and Conditions. Unless otherwise referred to in this Valuation Report these conditions and Assumptions apply to the valuations that are the subject of this Valuation Report. We have made certain Assumptions in relation to facts, conditions or situations affecting the subject of, or approach to, our valuations that we have not verified as part of the valuation process but rather, as referred to in the Glossary to the RICS Valuation Standards (Red Book), have treated as "a supposition taken to be true". In the event that any of these Assumptions prove to be incorrect then our valuations will need to be reviewed.

Basis of Valuation

Each of the properties has been valued on the basis set out in the Letter and defined below under "Definitions and bases of valuations".

Title

We have not had access to the title deeds of the properties. Unless specifically advised to the contrary by you or your legal adviser, we have made the Assumption that titles are good and marketable and are free from rights of way or easements, restrictive covenants, disputes or onerous or unusual outgoings. We have also made the Assumption that the properties are free from mortgages, charges or other encumbrances.

Where a Certificate of Title has been made available, we have reflected its contents in our valuations. Save as disclosed either in any such Certificate of Title or as referred to in our Valuation Report, we have made the Assumption that there is good and marketable title and that each property is free from rights of way or easements, restrictive covenants, disputes or onerous or unusual outgoings. We have also made the Assumption that each property is free from mortgages, charges or other encumbrances.

Where a Valuation Report contains site plans these are based on extracts of the Ordnance Survey or other maps showing, for identification purposes only, our understanding of the extent of title based on site inspections or copy title plans supplied to us. If verification of the accuracy of these plans is required the matter must be referred by you to your solicitors.

Condition of structure and services, deleterious materials

It is a condition of DTZ or any related company, or any qualified employee, providing advice and opinions as to value, that the client and/or third parties (whether notified to us or not) accept that the Valuation Report in no way relates to, or gives warranties as to, the condition of the structure, foundations, soil and services.

Our valuations have taken account of the general condition of each of the properties as observed from the valuation inspections. Where separate condition or structural surveys have been undertaken and made available to us, we have reflected the contents of the survey reports in our valuations, and we may have discussed each report with the originating surveyor.

Due regard has been paid to the apparent state of repair and condition of each of the properties, but condition surveys have not been undertaken, nor have woodwork or other parts of the structures which are covered, unexposed or inaccessible, been inspected. Therefore, we are unable to report that the properties are structurally sound or free from any defects. We have made an Assumption that each property is free from any rot, infestation, adverse toxic chemical treatments, and structural or design defects other than such as may be mentioned in our Valuation Report.

We have not arranged for investigations to be made to determine whether high alumina cement concrete, calcium chloride additive or any other deleterious material have been used in the construction or any alterations in respect of any of the properties, and therefore we cannot confirm that the properties are free from risk in this regard. For the purposes of our valuations, we have made an Assumption that any such investigation would not reveal the presence of such materials in any adverse condition.

We have not carried out an asbestos inspection in respect of any of the properties and have not acted as an asbestos inspector in completing the valuation inspection of properties that may fall within the Control of Asbestos at Work Regulations 2002. In respect of each of the properties, we have not made an enquiry of the duty holder (as defined in the Control of Asbestos at Work Regulations 2002), of an existence of an Asbestos Register or of any plan for the management of asbestos to be made. Where relevant, we have made an Assumption that there is a duty holder, as defined in the Asbestos at Work Regulations 2002 and that a Register of Asbestos and Effective Management Plan is place, which does not require any immediate expenditure, or pose a significant risk to health, or breach the HSE regulations. We advise that such enquiries be undertaken by a lawyer during normal pre-contract or pre-loan enquiries.

No mining, geological or other investigations have been undertaken to certify that each of the sites are free from any defect as to foundations. We have made an Assumption that the load bearing qualities of the sites of each of the properties are sufficient to support the buildings constructed, or to be constructed thereon. We have also made an Assumption that there are no services on, or crossing any of the sites in a position which would inhibit development or make it unduly expensive and that there are no abnormal ground conditions, nor archaeological remains present, which might adversely affect the present or future occupation, development or value of any of the properties.

No tests have been carried out as to electrical, electronic, heating, plant and machinery equipment or any other services nor have the drains been tested. However, we have made an Assumption in respect of each property that all services, including gas, water, electricity and sewerage are provided and are functioning satisfactorily.

Plant and Machinery

In respect of each of the properties no allowance has been made for any items of plant or machinery not forming part of the service installations of the building. We have specifically excluded all items of plant, machinery and equipment installed wholly or primarily in connection with any of the occupants' businesses. We have also excluded furniture and furnishings, fixtures, fittings, vehicles, stock and loose tools.

Goodwill

No account has been taken in our valuations of any business goodwill that may arise from the present occupation of any of the properties.

Floor areas and inspections

Unless referred to otherwise in our Valuation Report, we have physically inspected each of the properties and in each case have either carried out a measured survey or have calculated floor areas from plans provided by the Applicant or their agents, supported by check measurements on site. Measurement has been in accordance with the current Code of Measuring Practice prepared by the Royal Institution of Chartered Surveyors.

Where we were not instructed to measure and calculate the floor areas, we have applied floor areas provided by the Applicant or their agents. We have made an Assumption that these areas have been measured and calculated in accordance with the current Code of Measuring Practice prepared by the Royal Institution of Chartered Surveyors.

Environmental matters

We have made the enquiries referred to in the "Property information" sections of this Valuation Report regarding environmental matters including contamination and flooding, and we have had regard to any environmental reports referred to in these sections of this Valuation Report. However, we have not undertaken formal environmental assessments.

Where our enquiries have lead us to believe that a property is unaffected by contamination, flooding or other environmental problems, then, unless you have instructed us otherwise, our valuation of that property is based on an Assumption that no contamination or other adverse environmental matters exist in relation to the property sufficient to affect value.

Statutory requirements and planning

We have made verbal or written enquiries, or an inspection of the website, of the relevant planning authorities as referred to in the "Property information" sections of this Valuation Report as to the possibility of highway proposals, comprehensive development schemes and other ancillary planning matters that could affect property values. We have also sought to ascertain whether any outstanding planning applications exist which may affect any of the properties, and whether they are listed or included in a Conservation Area. We have also attempted to verify the existing permitted use of each of the properties, and endeavoured to have sight of any copies of planning permissions. The results of these enquiries are in the "Property information" sections of this Valuation Report.

Save as disclosed in a Certificate of Title or unless otherwise advised, and unless otherwise referred to in this Valuation Report we have made the Assumption that each of the buildings have been constructed in full compliance with valid town planning and building regulations approvals and that where necessary have the benefit of current Fire Risk Assessments compliant with the requirements of the Regulatory Reform (Fire Safety) Order 2005. Similarly, we have also made the Assumption that each of the properties are not subject to any outstanding statutory notices as to construction, use or occupation and that the existing uses of the properties are duly authorised or established and that no adverse planning conditions or restrictions apply.

We have made the Assumption that each of the properties comply with all relevant statutory requirements.

In England and Wales, the Government has implemented the Energy Performance of Buildings Directive requiring Energy Performance Certificates ("EPC") to be made available for all properties, when bought or sold, subject to certain exemptions. In respect of any of the subject properties which are not exempt from the requirements of this Directive, we have made an Assumption that an EPC is made available, free of charge, to the purchasers of the interests which are the subject of our valuation.

Please note the fact that employees of town planning departments now always give information on the basis that it should not be relied upon and that formal searches should be made if more certain information is required. We assume that, if you should need to rely upon the information given about town planning matters, your solicitors would be instructed to institute such formal searches.

In instances where we have valued a property with the benefit of a recently granted planning consent or on the Special Assumption that planning consent is granted, we have made an assumption that it will not be challenged under Judicial Review. Such a challenge can be brought by anyone (even those with only a tenuous connection with the property, or the area in which it is located) within a period of three months of the granting of a planning consent. When a planning consent is granted subject to a Section 106 Agreement, the three month period commences when the Section 106 Agreement is signed by all parties.

If a planning consent is subject to Judicial Review, we must be informed and asked to reconsider our opinion of value. Advice would be required from your lawyer and a town planner, to obtain their opinion of the potential outcomes of such a Judicial Review, which we will reflect in our reconsideration of value.

Defective Premises Act 1972

No allowance has been made for rights, obligations or liabilities arising under the Defective Premises Act 1972.

Leasing

We have not been provided with copies of the occupational leases and have relied upon the contents of tenancy schedules provided by the Asset Managers. We have made an Assumption that the leases are in good modern form, free from any onerous or unusual conditions or covenants which may affect value.

We have made an Assumption that copies of all relevant documents have been sent to us and that they are complete and up to date.

We have also assumed that where a property is occupied under leases then the tenants are financially in a position to meet their obligations, and there are no material arrears of rent or service charges, breaches of covenant, current or anticipated tenant disputes.

However, our valuations reflect the market's general perception of the credit worthiness of the type of tenants actually in occupation or responsible for meeting lease commitments, or likely to be in occupation.

We have also made an Assumption that wherever rent reviews or lease renewals are pending or impending, with anticipated reversionary increases, all notices have been served validly within the appropriate time limits.

Legal issues

Legal issues, and in particular the interpretation of matters relating to title and leases, may have a significant bearing on the value of an interest in property. No responsibility or liability will be accepted for the true interpretation of the legal position of our client or other parties. Where we express an opinion upon legal issues affecting the valuation, then such opinion should be subject to verification by the client with a suitable qualified lawyer. In these circumstances, we accept no responsibility or liability for the true interpretation of the legal position of the client or other parties in respect of the valuation of the property and our Valuation Report will include a statement to this effect.

Information

We have made the Assumption that the information provided by you and your respective professional advisers in respect of each of the properties we have valued is both full and correct. We have made the Assumption that details of all matters relevant to value within your and their collective knowledge, such as prospective lettings, rent reviews, outstanding requirements under legislation and planning decisions, have been made available to us, and that such information is up to date.

Deduction of notional purchaser's costs

The Market Value which we have attributed to each of the properties is the figure we consider would appear in a contract for sale, subject to the appropriate assumptions for this Basis of Value. Where appropriate, we have made an allowance in respect of stamp duty and purchaser's costs.

Taxation

No adjustment has been made to reflect any liability to taxation that may arise on disposal, nor for any costs associated with disposal incurred by the owner. Furthermore, no allowance has been made to reflect any liability to repay any government or other grants, taxation allowance or lottery funding that may arise on disposal.

Our valuation figure for each property is that receivable by the willing seller excluding VAT, if applicable.

Building Society Act 1986

We confirm that we are not disqualified under Section 13 of the Building Societies Act 1986 from reporting to you.

Properties in the course of development or requiring refurbishment

Unless otherwise referred to in the Valuation Report, we have relied upon information relating to construction and associated costs in respect of both the work completed and the work necessary for completion, together with a completion date, as advised by the owner of the property or their professional advisers.

Unless otherwise referred to in the Valuation Report, our valuation of the completed building has been based on an Assumption that all works of construction have been satisfactorily carried out in accordance with the building contract and specifications, current British Standards and any relevant codes of practice. We have also made an Assumption that a duty of care and all appropriate warranties will be available from the professional team and contractors, which will be assignable to third parties.

Definitions of bases of valuations

Market value

Market Value as defined in Practice Statement 3.2 of the RICS Valuation Standards ("the Red Book") and applying the conceptual framework which has been settled by the International Valuation Standards Committee (IVSC). Under PS 3.2, the term "Market Value" means "The estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arm's-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion."

The conceptual framework settled by the IVSC is included in PS 3.2 and is reproduced below:-

"3.2 The term property is used because the focus of these Standards is the valuation of property. Because these Standards encompass financial reporting, the term Asset may be substituted for general application of the definition. Each element of the definition has its own conceptual framework.

3.2.1 'The estimated amount ...' Refers to a price expressed in terms of money (normally in the local currency) payable for the property in an arm's-length market transaction. Market Value is measured as the most probable price reasonably obtainable in the market at the date of valuation in keeping with the Market Value definition. It is the best price reasonably obtainable by the seller and the most advantageous price reasonably obtainable by the buyer. This estimate specifically excludes an estimated price inflated or deflated by special terms or circumstances such as atypical financing, sale and leaseback arrangements, special considerations or concessions granted by anyone associated with the sale, or any element of Special Value.

3.2.2 '... a property should exchange ...' Refers to the fact that the value of an asset is an estimated amount rather than a predetermined or actual sale price. It is the price at which the market expects a transaction that meets all other elements of the Market Value definition should be completed on the date of valuation.

3.2.3 '... on the date of valuation ...' Requires that the estimated Market Value is time-specific as of a given date. As markets and market conditions may change, the estimated value may be incorrect or inappropriate at another time. The valuation amount will reflect the actual market state and circumstances as of the effective valuation date, not as of either a past or future date. The definition also assumes simultaneous exchange and completion of the contract for sale without any variation in price that might otherwise be made.

3.2.4 '... between a willing buyer ...' Refers to one who is motivated, but not compelled to buy. This buyer is neither over-eager nor determined to buy at any price. This buyer is also one who purchases in accordance with the realities of the current market and with current market expectations, rather than on an imaginary or hypothetical market which cannot be demonstrated or anticipated to exist. The assumed buyer would not pay a higher price than the market requires. The present property owner is included among those who constitute 'the market'. A valuer must not make unrealistic assumptions about market conditions or assume a level of Market Value above that which is reasonably obtainable.

3.2.5 '... a willing seller ...' Is neither an over-eager nor a forced seller prepared to sell at any price, nor one prepared to hold out for a price not considered reasonable in the current market. The willing seller is motivated to sell the property at market terms for the best price attainable in the (open) market after proper marketing, whatever that price may be. The factual circumstances of the actual property owner are not a part of this consideration because the 'willing seller' is a hypothetical owner.

3.2.6 '... in an arm's-length transaction ...' Is one between parties who do not have a particular or special relationship (for example, parent and subsidiary companies or landlord and tenant) which may make the price level uncharacteristic of the market or inflated because of an element of Special Value, (defined in IVSC Standard 2, para. 3.11). The Market Value transaction is presumed to be between unrelated parties each acting independently.

3.2.7 '... after proper marketing ...' Means that the property would be exposed to the market in the most appropriate manner to effect its disposal at the best price reasonably obtainable in accordance with the Market Value definition. The length of exposure time may vary with market conditions, but must be sufficient to allow the property to be brought to the attention of an adequate number of potential purchasers. The exposure period occurs prior to the valuation date.

3.2.8 '... wherein the parties had each acted knowledgeably, prudently ...' Presumes that both the willing buyer and the willing seller are reasonably informed about the nature and characteristics of the property, its actual and potential uses and the state of the market as of the date of valuation. Each is further presumed to act for self-interest with that knowledge and prudently to seek the best price for their respective positions in the transaction. Prudence is assessed by referring to the state of the market at the date of valuation, not with benefit of hindsight at some later date. It is not necessarily imprudent for a seller to sell property in a market with falling prices at a price which is lower than previous market levels. In such cases, as is true for other purchase and sale situations in markets with changing prices, the prudent buyer or seller will act in accordance with the best market information available at the time.

3.2.9 '... and without compulsion' Establishes that each party is motivated to undertake the transaction, but neither is forced or unduly coerced to complete it.

3.3 Market Value is understood as the value of a property estimated without regard to costs of sale or purchase and without offset of any associated taxes."