Update re Acquisition of Property

 9 December 2016

Specialist Investment Properties plc

 (the "Company" or "SIPP")

Update re Acquisition of Property

The Company announced on 15 September 2016 that it had exchanged contracts to acquire, on completion of construction, a newly refurbished and extended freehold property in Workington, Cumbria. Completion of the conversion of the property from a former hotel into 16 one bedroom flats providing supported living accommodation, was expected to occur by the end of 2016, at which point SL Workington Limited ("SL Workington"), a subsidiary of SIPP, would complete the acquisition. The Company has been informed that due to the age of the property, some delays to its refurbishment have been experienced and so completion of the construction process is now expected to occur at the end of Q1 2017. SL Workington is not involved in, or obliged to provide any funding in conjunction with the construction process. A further announcement will be made by the Company in due course.

For further information:

Specialist Investment Properties plc

John Le Poidevin / Lynn Bruce / Simon Clements

+44 (0) 1481 724222

Puma Investment Management Limited (Investment Adviser to the Company)

David Kaye

+44 (0) 20 7408 4050

Allenby Capital Limited (Nomad and Broker to the Company)

David Worlidge / James Thomas / Liz Kirchner

+44 (0) 20 3328 5656