Sale of Property

Eastern European Property Fund Limited

("EEP" or the "Company")

Sale of Ravuna Apartments

16 July 2012

On 13 July 2012, EEP completed the disposal of the Ravuna Apartments (401 Istiklal Street, Beyoglu, Istanbul), for a cash consideration of USD8.5 million (USD10.0 million including VAT).

401 Istiklal Street is a 1,080m2 retail/office building, which was sold vacant, as it had been recently renovated. The sale of the property for USD8.5 million (approximately GBP5.5 million) has crystallised a gain (before transaction costs) of approximately USD5.0 million (GBP3.2 million).

EEP plans to utilise tax losses in Turkey to reduce the taxable gain that will arise on the disposal to nil.

All of the proceeds will be used to reduce the Company's bank loan from USD13.0 million to USD4.0 million. Only a nominal charge will be levied by the bank for the early repayment of the loan.

The sale price is GBP0.4 million higher than the carrying value of the property in the 31 December 2011 report and financial statements of GBP5.1 million, thereby supporting the value at which the property was valued in the Company's financial statements.