Sale agreed for Romanian subsidiary

Eastern European Property Fund Limited

("EEP" or the "Company")

Sale agreed for Romanian subsidiary

12 December 2016

EEP announces that an agreement has today been signed to sell its Romanian subsidiary, Southern Properties SRL, the holding company for the property located in Bucharest.

The consideration is expected to be EUR 1.50 million (c. GBP 1.27 million) after allowing for local transaction costs and related company costs. This compares to a valuation of the Romanian operations at 30 June 2016 of EUR 1.68 million (c. GBP 1.40 million).

EUR 1.16 million is payable on completion and the remaining EUR 0.34 million is payable in instalments by 30 June 2018. The deferred consideration will be secured by a charge on the underlying property.

It is currently anticipated that the sale will be completed before the end of 2016. Following the sale, EEP's property portfolio will be focused on Turkey and Bulgaria.

Market Abuse Regulation:

The information communicated in this announcement includes inside information. Eastern European Property Fund Limited has included this statement in this announcement in order to comply with the Market Abuse Regulation, which came into effect on 3 July 2016.