Seven Dials. Seven Dials European Property Fund Limited

Seven Dials Seven Dials European Property Fund Limited Interim Report and Unaudited Financial Statements For the period 1 January 2011 to 30 June 2011 Seven Dials Financial 19 Short s Gardens, Seven Dials, London WC2H 9AW www.7dials.com

Contents Officers and Professional Advisers 3 Manager's Report 4 Portfolio of Financial Assets Attributable to Participating Shares 5 Statement of Total Return 6 Statement of Changes in Net Assets 6 Attributable to Holders of Participating Redeemable Preference Shares Balance Sheet 7 Notes to the Financial Statements 8 (In these accounts NAV relates to Net Asset Value per participating share; EUR and to Euros; Sterling, GBP and refer to British Pounds; USD, US$ and $ to United States Dollars.) 2 Seven Dials European Property Fund Limited

Officers and Professional Advisers Registered Office: 11 New Street St Peter Port Guernsey GY1 2PF Channel Islands Directors: Nicholas Renny - Chairman Paul McAteer Brett Robinson Quentin Vohmann (resigned 29 March 2011) Patricia White (appointed 29 March 2011) Administrator, Secretary and Registrar: Manager: Legis Fund Services Limited Seven Dials Guernsey Limited 11 New Street 11 New Street St Peter Port St Peter Port Guernsey, GY1 2PF Guernsey, GY1 2PF Channel Islands Channel Islands Investment Adviser and Promoter Auditors: Seven Dials Financial Limited Ernst & Young LLP 19 Short s Gardens, Seven Dials Royal Chambers London WC2H 9AW St Julian's Avenue Guernsey, GY1 4AF Custodian Channel Islands Kleinwort Benson (Guernsey) Limited Dorey Court, Admiral Park Guernsey Advocates St Peter Port Mourant Ozannes Guernsey, GY1 3BG 1 Le Marchant Street Channel Islands St Peter Port Guernsey, GY1 4HP Sponsor (Channel Islands Channel Islands Stock Exchange Listing): Legis Fund Services Limited UK Solicitors 11 New Street CMS Cameron McKenna LLP St Peter Port Mitre House Guernsey, GY1 2PF 160 Aldersgate Street Channel Islands London, EC1A 4DD United Kingdom Seven Dials European Property Fund Limited 3

Manager s Report The first half of the year has seen the continuation of the split level market for commercial property, in which demand for the best quality assets remains robust, but the appetite for more secondary property is rather more fragmented. This situation is reinforced by the policies of many of the lending banks, which remain highly risk averse. Investment volumes were considerably above that of last year, but the second quarter was rather more subdued than the first. Property markets in Western Europe have generally provided modest returns in the first half of the year. The new IPD Pan-European Property Funds Index had a total return of 3.4% in the first six months of 2011. The Seven Dials European Property Fund (the Fund ) suspended redemptions in February 2009 as has been previously explained. Official publication of net asset values has been suspended along with the suspension in dealings, in accordance with the terms of the articles. However, during the first half of the year the Manager has continued to publish indicative net asset values ( NAVs ) to assist investors to track the progress of their investment. Over the first half of 2011, the indicative NAVs of the Fund increased marginally. The Fund has investments in two institutional property funds: the Nordic Aktiv Fund and the German Aktiv Fund. Only the portfolio of the Nordic Aktiv Fund was re-valued in June, and this showed a small increase (before the liquidity discount). As the liquidity discount applied in the financial statements has remained unchanged from December 2010, this is also true for the value shown in the portfolio on page 5. The portfolio of the German Aktiv Fund was not re-valued for the valuation, but has been revalued at the latest indicative market value in these financial statements. The current size of the Fund is too small for the original strategy of investing in large scale institutional property funds and the Manager continues to explore ways of increasing the size of the Fund as well as how to re-open the Fund. Informal talks have taken place to discuss the possibility of combining the Seven Dials European Property Fund with another fund of a similar nature and one such discussion is ongoing at the time of this report. Any such proposals would of course require shareholder approval. Investor interest in non-prime assets does appear to be increasing, albeit slowly, but the continued concerns over the level of economic growth and the financial crisis in the Eurozone only serve to temper the risk appetite of many investors. The Nordic countries and Germany remain as some of the preferred investment areas for European property investors and this will hopefully lead to renewed interest in the types of asset that the fund holds in due course. This in turn may give rise to opportunities to realise the investments held in the fund and so unlock the current suspension. However, the actual path of events and the timing remain highly uncertain. Seven Dials Guernsey Limited October 2011 4 Seven Dials European Property Fund Limited

Portfolio of Financial Assets Attributable to Participating Shares As at 30 June 2011 Participating Market Shareholders Nominal Cost Value Interest % Investments Funds Euro German Aktiv Property Fund 100 10,000,144 3,531,297 25.01 Nordic Aktiv Property Fund 100 10,343,103 5,401,368 38.25 Total value of investments 20,343,247 8,932,665 63.26 Cash at bank and on deposit 5,266,442 37.29 Other net liabilities (77,159) (0.55) Net Assets Attributable to Participating Shareholders 14,121,948 100.00 As at 31 December 2010 Participating Market Shareholders Nominal Cost Value Interest % Investments Funds Euro German Aktiv Property Fund 100 10,000,144 3,247,171 23.76 Nordic Aktiv Property Fund 100 10,343,103 5,141,904 37.63 Total value of investments 20,343,247 8,389,075 61.39 Cash at bank and on deposit 5,286,489 38.68 Other net liabilities (9,701) (0.07) Net Assets Attributable to Participating Shareholders 13,665,863 100.00 Seven Dials European Property Fund Limited 5

Statement of Total Return for the period from 1 January 2011 to 30 June 2011 Note 1 January to 1 January to 30 June 2011 30 June 2010 Net gain/(loss) on investments 3 543,590 (1,105,270) 543,590 (1,105,270) Income 4 90,813 251,424 Expenses 5 (178,318) (218,390) Net (loss)/income for the period (87,505) 33,034 Total profit/(loss) for the period 456,085 (1,072,236) Finance costs: distributions 6 - (24,392) Net increase/(decrease) in assets attributable to Participating Shareholders from investment activities 456,085 (1,096,628) Statement of Changes in Net Assets Attributable to Holders of Participating Redeemable Preference Shares for the period from 1 January 2011 to 30 June 2011 Note 1 January to 1 January to 30 June 2011 30 June 2010 Net assets attributable to Participating Shareholders at the start of the period 13,665,863 15,753,374 Net increase/(decrease) in assets attributable to Participating Shareholders from investment activities 456,085 (1,096,628) Net assets attributable to Participating Shareholders at the end of the period 14,121,948 14,656,746 The accompanying notes form part of these financial statements. 6 Seven Dials European Property Fund Limited

Balance Sheet As at 30 June 2011 Assets Note 30 June 2011 31 Dec 2010 Financial Assets Investments at fair value through profit or loss 1 8,932,665 8,389,075 Receivables 11 7,556 79,045 Cash and bank balances 5,266,442 5,286,489 14,206,663 13,754,609 Liabilities Manager's fees (40,714) (42,488) Other payables 12 (43,901) (46,158) (84,615) (88,646) Net assets attributable to holders of Participating Shares 14 14,121,948 13,665,863 Net assets attributable to holders of Management Shares 100 100 NAV per Participating Share Class A 5.45 5.28 Class B 5.53 5.35 Class C 5.57 5.38 Class P 5.36 5.19 Class R 5.28 5.12 The Financial Statements on pages 6 to 18 were approved by the Board of Directors on 20 October 2011 and signed on its behalf by: N Renny Director P McAteer Director The accompanying notes form part of these financial statements Seven Dials European Property Fund Limited 7

for the period from 1 January 2011 to 30 June 2011 General Seven Dials European Property Fund Limited ("the Company") was incorporated on 15th November 2006 and has been authorised by the Guernsey Financial Services Commission as an open ended Class B collective investment scheme under The Protection of Investors (Bailiwick of Guernsey) Law, 1987. The Company obtained listing on the Channel Islands Stock Exchange for Class A, B and C shares on 2 March 2007 and for Class P and R on 26 October 2007. The Company s investment objective is to provide an attractive level of income together with prospects for capital growth from investing in European commercial property funds and related investments. Based on market conditions prevailing at the time of its launch, the Company was targeting total returns for Shareholders of 10% per annum over the medium term, although such level of return cannot be guaranteed. 1. Accounting policies Accounting convention The Financial Statements have been prepared in accordance with United Kingdom Accounting Standards, The Companies (Guernsey) Law, 2008 and as a Collective Investment Scheme under The Protection of Investors (Bailiwick of Guernsey) Law, 1987 and under the historical cost convention as modified by the revaluation of investments and in accordance with the Statement of Recommended Practice for Financial Statements of Authorised Funds issued by the IMA in October 2010. The specific accounting policies are described below. a) Foreign currencies Foreign currency monetary assets and liabilities are translated into Euro at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated at the rate of exchange ruling at the date of each transaction. Foreign exchange gains and losses are included in the statement of total return. Items included in the Company's financial statements are measured using the currency of the primary economic environment in which it operates - the functional currency - which is Euros. The Company has also adopted the Euro as its presentational currency. b) Establishment costs Establishment costs were written off in the first financial period in accordance with the Authorised Funds SORP. There is a difference between the NAV in the financial statements and the valuation for dealing purposes, as the establishment costs are being amortised over four years in the latter. c) Investments The Company s business is investing in financial assets for capital growth and income with a view to profiting from their total return. The portfolio of financial assets is managed and its performance evaluated on a fair value basis, in accordance with a documented investment strategy. The fair value of investments made by the company in underlying funds is based on the unaudited Net Asset Value per share or unit quoted as at the close of business on the valuation day, 30 June 2010. In the case where the unaudited Net Asset Value is quoted on a bid or offer basis, then the investments held long will be valued at the bid price. Investments for which quotations are not readily available are assigned values as determined by the directors. 8 Seven Dials European Property Fund Limited

for the period from 1 January 2011 to 30 June 2011 (continued) 1. Accounting policies (continued) c) Investments (continued) Changes in unrealised gains and losses on the revaluation of the Company's investments are accounted for in the Statement of Total Return. Realised gains and losses on part sales of investments are arrived at by deducting the average costs of such investments from their sale proceeds and are recognised in the Statement of Total Return. The Company recognises purchases and sales of Investments on their trade date. There have been no additions or disposals during the period (2010: none). The Fair Value of Investments at the Balance Sheet date is shown in the Portfolio of Financial Assets Attributable to Participating Shares on page 5. The Company derecognises Investments when the contractual rights to the cash flows from them expire. d )Income and expense Bank deposit interest income and expenses are recognised on an accruals basis. Transaction costs are capitalised as part of the cost of investments. Performance fees will be recognised on an accruals basis. e) Distributions and equalisation Interim Distributions are recognised in the Statement of Total Return at the date they are paid, any final dividends are approved by Shareholders at General meeting and are recognised in the Statement of Total Return at that date. On the first distribution following the issue of Participating Shares the shareholders would receive as part of that distribution a capital sum representing that part of the Subscription price which represents the value of accrued income at the time of purchase. f) Net Assets attributable to participating shares Net assets attributable to participating shares are classified as a liability on the balance sheet and represent the residual net assets due to the participating shareholders at the balance sheet date. g) Participating redeemable preference shares Participating Redeemable Preference Shares are classified as a liability on the Balance Sheet and represent the residual net assets due to the participating shareholders at the Balance Sheet date. h) Management shares Management Shares are classified as equity share capital on the Balance Sheet. Seven Dials European Property Fund Limited 9

for the period from 1 January 2011 to 30 June 2011 (continued) 1. Accounting policies (continued) i) Fair value measurement hierarchy "Effective 1 January 2010, the Company has adopted the amendment to FRS 29 for financial instruments that are measured in the Balance Sheet at fair value. This requires disclosure of fair value measurements by level of the following fair value measurement hierarchy: - Quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1). - Inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices) (level 2). - Inputs for the asset or liability that are not based on observable market data (that is, unobservable inputs) (level 3)." The level in the fair value hierarchy within which the financial asset or financial liability is categorised is determined on the basis of the lowest input that is significant to the fair value measurement. Financial assets and financial liabilities are classified in their entirety into one of the three levels. 2. Guernsey Tax Exempt Status The Company resides for taxation purposes in Guernsey where it pays an annual tax exemption fee of 600 subject to the provisions of the Income Tax (Exempt Bodies) (Guernsey) Ordinance 1989. The Company will continue to be exempt under the Income Tax (Zero-10)(Guernsey) (No 2 ) Law 2007, which came into force from 1 January 2008. 3. Net Gain/(Loss) on Investments 30 June 2011 30 June 2010 Unrealised gain/(loss) on investments held 543,590 (1,105,270) Net gain/(loss) on investments 543,590 (1,105,270) The Company's investments are designated at levels 2 and 3 in the fair value hierarchy (see notes 1(i) and 17). There is one transfer out of the level 3 classification as recent market information has enabled the Directors to revalue the investment in the German Aktiv Property Fund. There were no additions or disposals of the investments during 2010 or 2011. The above carrying value at 30 June 2011 includes a liquidity discount. The liquidity discount represents an estimate of the potential discounts that would be needed to be applied to the market value of the investments if the Fund decided to sell them. The performance of the European property market has been monitored by the manager on a continuing basis. The market value of the underlying investments has shown only a modest recovery since 2009. Consequently, the Directors have taken the decision to factor in a liquidity discount in this period s financial statements, having considered comparable investments and funds in estimating the level of discounts to apply. The liquidity discounts applied are 5% for the Nordic Aktiv Property Fund L.P. (2010: 5%). No liquidity discount has been applied for the German Aktiv Property Fund L.P. as recent market information has been used to value this fund (2010: 15%). For further information on the valuation of the underlying investments please refer to the "Fund investments" section of the Manager's report on page 4. 10 Seven Dials European Property Fund Limited

for the period from 1 January 2011 to 30 June 2011 (continued) 4. Income 30 June 2011 30 June 2010 Bank deposit interest 20,125 436 Dividend income 70,688 250,988 Total income 90,813 251,424 5. Expenses 30 June 2011 30 June 2010 Management fees (note 7) 80,689 80,101 Administration fees (note 8) 42,561 50,745 Investment management insurance 10,829 11,758 Audit fees 8,882 9,020 Directors' fees (note 10) 14,588 14,625 Custodian fees (note 9) 8,324 9,241 Legal and professional fees 5,371 36,790 Sundry expenses 7,074 6,110 Total expenses 178,318 218,390 6. Distributions and Equalisation Distributions are made following the period-end of 30 June and the year-end of 31 December. The Shareholders receive, as part of the distribution, a capital sum ('equalisation'). This equalisation relates to that part of the subscription price of any shares, issued since the prior distribution, representing the value of the accrued income at the date of purchase. Class 30 June 2011 30 June 2010 Distribution A - 14,484 B - 5,265 C - 4,643 P - - R - - - 24,392 Seven Dials European Property Fund Limited 11

for the period from 1 January 2011 to 30 June 2011 (continued) 7. Management and Performance Fees Seven Dials Guernsey Limited (the Manager ) is entitled to a fee, which is different for each class of Participating Shares. The fee is calculated as a percentage of the Net Asset Value attributable to the relevant class of Participating Shares and is payable quarterly in arrears.the percentages are as follows: 0.95% for Class A shares; 0.45% for Class B shares; 0.30% for Class C shares, 1.25% for Class R shares; and 0.75% for Class P shares. During any period where dealing in Participating Shares is suspended the management fee is calculated based upon the last published NAV. The Manager is entitled to a performance incentive fee in respect of each class of Participating Shares of 15% on returns in excess of a 10% annual return. The first calculation of the performance incentive fee occurred on 31 December 2009; at that date no fee was due. The Manager is permitted to add an initial charge of up to 3% to the subscription price for any Participating Shares. In addition, a dealing charge (which is not payable to the benefit of the Manager) may be charged by the Company and added to the Subscription Price (or deducted from the Redemption Price) to cover the costs associated with buying and selling the Company's investments. The Manager is responsible for the payment of the Investment Adviser's fees. 8. Administration Fees Up to 30 June 2010, the Administrator's fee was calculated as a percentage of the NAV and was payable quarterly in arrears, subject to a minimum of 100,000 per annum. The percentage was 0.10% of a NAV up to 100 million, 0.075% of a NAV between 100 million and 150 million and 0.05% of a NAV above this threshold. Due to the suspension, the calculation was based on the last published NAV which meant the minimum fee was in use. From July 2010, the Administrator's fee is 85,000. The Administrator is also entitled to a transaction fee of 100 for each subscription, redemption and transfer. 9. Custodian Fees The Custodian is entitled to receive a fee at the rate of 0.045% of Net Asset Value per annum payable quarterly in arrears, subject to a minimum periodic fee of 15,000 per annum, and an initial take-on fee of 5,000. As the fund is in a period of suspension the calculation will be based on the last published NAV, being 31 December 2008. The Custodian is also entitled to a transaction fee of 100 per investment transacted by the Custodian and to reimbursement from the Company for all costs and expenses reasonably incurred by the Custodian in the performance of the services under the Custodian Agreement 10. Directors' Fees The Directors receive a fee of 9,000 per annum, apart from the Chairman (Nicholas Renny) who receives a fee of 11,250 per annum, and Brett Robinson who has waived his fee. All Directors receive reimbursement of travel and other costs incurred in connection with their duties. 12 Seven Dials European Property Fund Limited

for the period from 1 January 2011 to 30 June 2011 (continued) 11. Receivables 30 June 2011 31 Dec 2010 Management shares 100 100 Dividend receivable - 70,688 Prepayments 7,456 8,257 7,556 79,045 12. Other Payables 30 June 2011 31 Dec 2010 Custodian Fees 4,140 4,638 Directors' Fees 2,244 2,269 Audit Fees 12,753 17,826 Administration fees 21,192 21,425 Other creditors 3,572-43,901 46,158 13. Called-up Share Capital The principal rights attaching to the classes of shares are as follows: Management Shares The Management Shares exist to comply with Guernsey Law. The Management Shares can only be issued at par and are owned by the Manager or its nominee. The Management Shares carry voting rights only when there are no Participating Shares in issue. In the event of a liquidation, they rank equally between themselves, but only for return of the nominal amount paid up on them. Accordingly, Management Shares will not entitle the holders thereof to receive any dividends. Participating Shares At general meetings, every holder who (being an individual) is present in person is entitled to one vote and, on a poll, every holder present in person or by a proxy or by a duty authorised representative shall have one vote for every Participating Share held. The shares confer the right to dividends. Surplus assets remaining after payment of all liabilities will be distributed to the holders of the Participating Shares in accordance with the rights of each class of Participating Shares to share in the net assets of the Company, being pro rata to their respective shares of the Net Asset Value as at the Valuation Day immediately preceding the date of liquidation. Seven Dials European Property Fund Limited 13

for the period from 1 January 2011 to 30 June 2011 (continued) 13. Called-up Share Capital (continued) Nominal Shares Nominal Shares will only be issued at par to the Manager for the purpose of providing funds for the redemption of the nominal value of Participating Shares. In a winding-up Nominal Shares rank for payment of the nominal amount paid thereon after repayment of the nominal amount paid upon the Participating Shares but confer no further right to participate in the profits or assets of the Company. Accordingly no dividend is payable to holders of Nominal Shares. Authorised 2011 2010 100 Management Shares of 1 each 100 100 Unlimited number of Participating and Nominal Shares of no par value - - The unclassified shares may be issued as Class A Shares, Class B Shares, Class C Shares, Class P Shares and Class R Shares. 2011 2010 Shares in issue No. No. Management Shares At 1 January 100 100 - Issued during the period - - At 30 June 100 100 NAV per NAV per Participating Shares 2011 2010 share 2011 share 2010 - In issue A 1,627,276 1,627,276 5.447794 5.275167 - In issue B 388,549 388,549 5.534130 5.349122 - In issue C 383,766 383,766 5.567137 5.378150 - In issue P 110,676 110,676 5.363832 5.191011 - In issue R 71,247 71,247 5.284134 5.120825 There were no Nominal Shares issued or redeemed during the period. 2011 2010 Value of share capital Management Share capital At 1 January 100 100 - Issued during the period - - At 30 June 100 100 Participating Shares At 1 January - - - Issued during the period - - At 30 June - - 14 Seven Dials European Property Fund Limited

for the period from 1 January 2011 to 30 June 2011 (continued) 14. Share Premium 30 June 2011 31 Dec 2010 Class In respect of Participating Shares: At 1 January 25,865,582 25,865,582 - Issued during the period A - - - Issued during the period B - - - Issued during the period C - - - Issued during the period P - - - Issued during the period R - - At the end of the period 25,865,582 25,865,582 2011 2010 Share Premium 25,865,582 25,865,582 Reserves (11,743,634) (12,199,719) Net assets attributable to holders of Participating Shares 14,121,948 13,665,863 Difference due to amortisation of formation fees 2,618 18,331 Difference due to adjustment of investments' NAV per audited financial statements 266,656 Difference due to liquidity discount and other market value adjustments (see note 3) 956,986 843,657 Difference due to manager's fees and dividends paid by the share classes - 1,773 Adjustments for other fee over accrual (7,324) (2,782) Net assets attributable to holders of Participating Shares per valuation for dealing purposes 15,074,228 14,793,498 15. Financial Risk Management The main risks arising from the Company s financial instruments are interest rate, market price, credit / counterparty risk, liquidity and foreign currency risks. a) Interest rate risk The Company is exposed to risk associated with the effects of fluctuations in the prevailing levels of market interest rates on its cash positions. Seven Dials European Property Fund Limited 15

for the period from 1 January 2011 to 30 June 2011 (continued) 15. Financial Risk Management (continued) The interest rate profile of the financial assets and liabilities is as follows: Non-interest Floating rate Fixed rate Total bearing financial financial financial assets/ assets/ assets (liabilities) (liabilities) 30 June 2011 Eur 8,932,665 5,266,442-14,199,107 31 December 2010 Eur 8,389,075 5,286,489-13,675,564 The above analysis excludes short-term receivables and payables attributable to holders of Participating Shares which are non-interest bearing. The floating rate financial assets and liabilities comprise bank balances, which receive interest based on Kleinwort Benson's base rate. The Company's sensitivity to a 50 bps increase or decrease in interest rates is as follows: Change in Interest Impact on basis points bearing Statement financial of Total assets Return 30 June 2011 50 5,266,442 26,332 31 December 2010 50 5,286,489 26,432 The sensitivity analysis above is based on a change in an assumption while holding all other assumptions consistent. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated - for example, change in interest rate and change in market values. The Company mitigates any risk by keeping interest rates applied to cash balances under review. b) Market Price Risk The investments of the Company are subject to normal market fluctuations and the risks inherent in investment in property markets, thus there can be no assurance that appreciation will occur. The value of investments and any income derived therefrom may fall as well as rise and investors may not recoup the original amount invested in the Company. The Company's sensitivity to a 10% increase or decrease in market prices is as follows: Percentage Investments Impact on change in Balance market prices Sheet 30 June 2011 10 8,932,665 893,267 31 December 2010 10 8,389,075 838,908 16 Seven Dials European Property Fund Limited

for the period from 1 January 2011 to 30 June 2011 (continued) 15. Financial Risk Management (continued) c) Credit/Counterparty Risk The Company is exposed to credit risk on the counterparties with whom it trades, that these counterparties may not perform their obligations and that settlement of transactions may not occur. The Company is also exposed to a credit risk on the prefunding of investments by the company in underlying schemes. d) Liquidity Risk The Company s assets consist mainly of investments in collective investment schemes and cash. The main liability of the Company is the redemption of participating shares that investors wish to sell back to the company. Liquidity risk may arise from the potential inability to redeem an investment in financial instrument without undue delay at a price close to market value. The number of shares that may be redeemed on a dealing date can be limited to 5% of the total number of Participating Shares in issue should the manager deem it necessary. The deferred amount may be carried forward to the next dealing date. The directors also have the ability to suspend dealing and took this action on 27th February 2009. The Company is still suspended. e) Currency Risk The Company s assets may be acquired in currencies other than the base currency of the Company. Investments may be acquired in a wide range of currencies, some of which may be affected by currency movements. The Net Asset Value of the Company may rise or fall due to exchange rate fluctuations. The currency exposure is as follows: Investments Cash Other net Total assets/ (liabilities) 30 June 2011 EUR 8,932,665 5,266,442 (67,722) 14,131,385 GBP - - (9,437) (9,437) Total 8,932,665 5,266,442 (77,159) 14,121,948 31 December 2010 EUR 8,389,075 5,286,489 11,863 13,687,427 GBP - - (21,464) (21,464) Total 8,389,075 5,286,489 (9,601) 13,665,963 16. Related Parties All Directors are also directors of the Manager. As Directors, they received the following remuneration during the period: the Chairman Mr Renny received 5,600 (2010 5,600); Mr Vohmann received 2,219 (2010: 4,500), Mr McAteer received 4,500 (2010 4,500) and Ms White received 2,244 (2010: nil). At the period-end, an outstanding amount of 2,244 was due to Ms White (2010: 2,269 was owed to Mr Vohmann). Mr Vohmann was a director of Legis Group Limited, the immediate and ultimate parent company of the Administrator, until 24 March 2011. Ms White is a director of the Administrator, of Legis Group Limited and other subsidiary companies in the Legis Group. Mr Robinson is a director of the Investment Adviser and owns 50% of Seven Dials Fund Management (formerly Seven Dials Consulting Limited), the Manager s and Investment Advisor's parent company; he agreed to waive his fee. Seven Dials European Property Fund Limited 17

for the period from 1 January 2011 to 30 June 2011 (continued) 17. Fair Values The fair value hierarchy of financial instruments recognised in the Balance Sheet by level (see Note 1 (i), fair value measurement hierarchy) is as follows: Level 1 Level 2 Level 3 Total 30 June 2011 Financial assets at fair value through Statement of Total Return: - 3,531,297 5,401,368 8,932,665 Financial liabilities at fair value through Statement of Total Return: - - - - 31 December 2010 Financial assets at fair value through Statement of Total Return: - - 8,389,075 8,389,075 Financial liabilities at fair value through Statement of Total Return: - - - - 18 Seven Dials European Property Fund Limited

Seven Dials Financial 19 Short s Gardens, Seven Dials, London WC2H 9AW www.7dials.com