Credo European Properties Limited (Fund "II") was established to provide investors with an opportunity to invest in a diverse portfolio of commercial properties in the United Kingdom and Europe. Fund II has targeted an IRR of 12% p.a. Fund II closed on 31 March 2006, having raised equity of £34 million. The fund is 97% invested and the remaining equity is committed to an ongoing development.

Since inception:

• gross assets of approximately £130m have been acquired in 18 separate transactions


• 6 investments have been sold resulting in a return of capital of approximately £9.2m


• Income of £5.9m has been generated providing a cash yield of 17% on the initial equity invested


• £14.7m (43% of the initial capital raised) has been returned to investors since inception

Fund II holds a stake in the following properties:

• 85 Volkswagen showrooms (UK)


• 15 Hilton Hotels (UK)


• 13 Burger King outlets (Germany)


• An office investment in St Austell, Cornwall (UK)


• 19 ATU auto parts and service centres (Germany)


• 9 ATU auto parts and service centres (Austria)


• portfolio of 4 GWB shopping centres and a clinic/medical facility (Germany)


• Wohncenter (Switzerland)


• 3.26% stake in an AIM-listed group, CareCapital Group Plc


• Surrey development


• Call centre in Warrington let to Car Phone Warehouse


• A retail outlet let to Rewe (Germany)

• 5 Ashbourne Nursing Homes (UK) - IRR 15%


• 15 Netto supermarkets (Germany) - IRR 34%


• 6 GWB shopping centres (Germany) - IRR 09%


• 24.9% stake in a retail portfolio of 29 properties (Germany) consisting of:

(IRRs represent the return to investors net of all fees and net of carry)