Return of Capital

8 January 2015

Duet Real Estate Finance Limited

("DREF" or the "Company")

Return of Capital

As previously announced on 19 December 2014, the Master Fund has fully 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. Total proceeds realised by the Master Fund include all amounts outstanding under the loan agreements, of which the Company's share totals £10,444,037, equivalent to 14.16 pence per share based on the current number of shares in issue.

As such, the board has resolved to return 14.15 pence per share 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 return of capital will be paid to shareholders on the register at the close of business on 16 January 2015 (the "Record Date"). The ex-date will be 15 January 2015. The B shares will be issued on 20 January 2015 (the "Issue Date"), redeemed on 21 January 2015 (the "Redemption Date") and settlement is intended to be effected on 22 January 2015. Payments of redemption monies are expected to be made either through CREST (in the case of shares held in uncertificated form) or by cheque (in the case of shares held in certificated form).

Following the return of capital, the NAV per share will be reduced by the amount of the return of capital and the costs of the redemption. Costs of the redemption are not expected to exceed £8,000. Taking account of the declining capital base, the board anticipates that the Company remains on track to provide Shareholders with distributions which, taken over the course of a twelve month period, will be in excess of 7 per cent per annum based on the issue price, as adjusted for returns of capital and impairments.

Furthermore, the Company may also continue to carry out purchases of its own shares from time to time, subject to regulatory restrictions and in accordance with the Company's general authority to repurchase shares granted by its shareholders at the Company's 2014 Annual General Meeting.

Announcements will be made in due course in connection with further returns of capital from the Master Fund.

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