greff global real estate fund of funds plc...2009/11/25 · 1 greff global real estate fund of...

GREFF GLOBAL REAL ESTATE FUND OF FUNDS PLC (a closed-ended investment company with variable capital incorporated with limited liability in Ireland under registration no. 435768)

Interim Unaudited Report for the six month period ended 30 September 2009

CONTENTS Page

General Information 1 Responsibility Statement 3

Investment Manager’s Report 4

Portfolio of Investments 17 Portfolio Changes 19 Profit and Loss Account 20 Balance Sheet 21 Statement of Changes in Net Assets Attributable to Participating Shareholders 22 Cash Flow Statement 23 Notes to the Financial Statements 24 Appendix 1 - Fees incurred by underlying investments 33 Directory 35

1

GREFF GLOBAL REAL ESTATE FUND OF FUNDS PLC General Information

The following information is derived from and should be read in conjunction with the full text and definitions section of the Prospectus. The Prospectus was dated 31 May 2007. GREFF Global Real Estate Fund of Funds Plc (the “Company”) is a closed-ended investment company with variable capital organised in Ireland with limited liability and will be authorised by the Irish Financial Services Regulatory Authority pursuant to the provisions of Part XIII of the Companies Act, 1990.

The Company may have more than one Share Class allocated to it. The Shares of each Class allocated to a Company will rank pari passu with each other in all respects except as to all or any of the following:-

• currency of denomination of the Class; • dividend policy; • the level of fees and expenses to be charged; and • the minimum subscription and minimum holding applicable.

The functional currency of the Fund is Euro.

The participating share capital of the Fund shall at all times equal its Net Asset Value. At 30 September 2009, the Fund had six share classes in issue. The following share classes have launched; Class A, Class B, Class C, Class B USD and Class C USD. Class A USD has yet to launch.

The Fund’s Shares are listed on the Irish Stock Exchange. INVESTMENT OBJECTIVE The investment objective of the Fund is to obtain income driven, low volatility exposure to the property sector on a global basis with a targeted return of between 13%-15% per annum, net of all fees and expenses. The Company expects to achieve its investment objective by obtaining diversified exposure to global real estate through investment in Investments Funds and Property Related Assets. PRICES During the Initial Offer Period, the subscription price was US$100 per Unit or Class Currency equivalent (together with a subscription fee of up to (5%) of the amount subscribed in the circumstances set out in the Prospectus). The Offer Price of a Share shall be the appropriate Subscription Price on a Valuation Day. The Subscription Price is the Net Asset Value (“NAV”) per Share as at the relevant Valuation Day. The Redemption Price per Share is the Net Asset Value per Share as of a relevant Valuation Day. MINIMUM SUBSCRIPTION The minimum initial subscription amounts for Shares in the Class A (€) Shares must not be less than €250,000 and US$325,000 in the case of the Class A (US$) Shares. The minimum initial subscription amounts for Shares in the Class B (€) Shares must not be less than €5,000,000 and US$6,500,000 in the case of the Class B (US$) Shares. The minimum initial subscription amounts for Shares in the Class C (€) Shares must not be less than €250,000 and US$325,000 in the case of the Class C (US$) Shares.

2

GREFF GLOBAL REAL ESTATE FUND OF FUNDS PLC General Information (continued) DEALING The Valuation Day for the Fund shall be the last Business Day in each calendar month or such other Business Day or Days as the Manager may determine from time to time and notify in advance to Participating Shareholders provided that there is at least one Valuation Day in each month. A Business Day is defined as a day (other than Saturday or Sunday or a public holiday in Ireland), upon which retail banks, are generally open for business in Dublin and Lisbon. SUBSCRIPTIONS AND REDEMPTIONS Applications must be received by the Administrator before 5.00 pm (Irish time), 30 Business Days before the Subsequent Opening Date or such later period as the Directors may, at their discretion, accept, provided that such applications are received prior to the Valuation Point for that Subsequent Opening Date. As the Fund is structured as a closed-ended Fund, Participating Shareholders are not entitled to request redemption of their Shares. DIVIDEND POLICY The Directors intend to declare a semi-annual dividend (the “Dividend”) to the Participating Shareholders on the last Business Day of March and September in each year, (each, a “Dividend Declaration Date”) based on the net investment income of the Fund on an income received basis. The Dividend will be paid by telegraphic transfer within 30 Business Days of the Dividend Declaration Date (the “Dividend Payment Date”), subject to foreign exchange regulations applicable in the country where the payment has been requested to be made or other delays. The amount of the Dividends will be determined at the discretion of the Directors less any applicable deduction for performance fee. Please see the Prospectus for more details.

Any Dividend declared on a Share that is not claimed will not earn interest and, if not claimed within six years of its declaration, shall be forfeited and shall be escheated for the benefit of the relevant Class of the Fund. No Dividend has been declared during the period.

3

GREFF GLOBAL REAL ESTATE FUND OF FUNDS PLC

Responsibility Statement We confirm the following in relation to the interim financial statements for Greff Global Real Estate Fund of Funds plc;

These financial statements have been prepared in accordance with the ASB Statement: Half Yearly reports an with the Companies Acts, 1963 to 2009, the listing rules of the Irish Stock Exchange and the reporting requirements of the EU Transparency Directive. The interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 March 2009 which have been prepared in accordance with accounting standards generally accepted in Ireland. Accounting standards generally accepted in Ireland are those published by the Institute of Chartered Accountants in Ireland and issued by the Accounting Standards Board. The financial statements give a true and fair view in accordance with Generally Accepted Accounting Practice in Ireland, of the state of the Company’s affairs at 30 September 2009 and of its results for the period then ended; and

The financial statements have been properly prepared in accordance with the requirements of the Companies Acts, 1963 to 2009. There have been no material related party transactions which require disclosure during the period.

These interim financial statements have not been independently audited or reviewed by an external audit firm.

The Investment Manager report on pages 4 to 16 provides a fair review of the performance of the company for the period ending 30 September 2009.

On behalf of the Board of Directors James Deeny Director

Thomas Finlay Director Date: 17 November 2009

4


Investment Manager’s Report for the period ended 30 September 2009 House views and the model portfolio Economics Global Property Markets

Two years after the start of the Credit Crunch, a degree of stability has returned to financial markets and the major economies are expected to emerge from recession by the end of the third quarter of 2009. Leading indicators have moved up from historic troughs as the massive monetary and fiscal stimuli has restored liquidity to the financial system and confidence to consumers and corporates. Thus global policymakers have achieved their goal of preventing a systemic failure of the banking system and a more severe recessionary period. This is now reflected in consensus economic growth expectations which have started to materially improve. Nonetheless, the banking system remains fragile after large write-downs, not least on the commercial property lending books. Government bail-out packages have provided room for an orderly, patient work-out of troubled loans but, the corollary of that is a continued misallocation of capital. In addition as this monetary stimulus is reversed the financing used will have to be paid off through fiscal tightening which will act to subdue demand. Therefore, we are unlikely to see economic growth recover to the above-trend levels required for a typical post-recession rental upswing and as such Global Multi-Manager (‘GMM’ – a division of CBRE Investors) remains generally cautious over near term occupier market fundamentals. GMM have been assessing prospects for global real estate markets and considering what are the most appropriate strategies. Our central thesis is that the scale of re-pricing and distress has created an attractive opportunity to access real estate assets at discounted prices from peak valuations. However, the key decision for real estate investors in all markets is how to balance the attraction of high yields, especially when purchasing assets from forced sellers, with the near-term risks to the income stream from falling rents and rising vacancy rates, and the medium-term risks from a weak economic recovery.

Europe

Over the quarter yields in many Continental European markets continued to rise. The consensus view, which GMM shares, is that yields in most markets have now stabilized. Indeed in the most transparent markets, momentum is likely to see yields compress over the near term. Investor sentiment has noticeably improved and is being reflected in increased levels of investment activity. GMM continues to hold a positive view for the UK but this has moderated owing to an adjustment in yields which have fallen across all market segments during Q3. These adjustments have been much quicker than seen in previous cycles and this can be attributed to two factors. The first has been a ‘weight-of-money’ factor whereby equity has returned to the market, yet there are limited buying opportunities. The other is due to an improvement in investor expectations owing to a perception that the worst of the economic downturn has passed. Declining rental growth expectations since the start of 2008 negatively impacted yields and thus values, and this effect has now reversed. However, GMM remains cautious as we still believe that income is set to fall over the coming 18 months, and some of the re-pricing seen may be too optimistic. In GMM’s view, France continues to offer good relative value owing to its more broadly diversified economy and the extent of the yield correction already seen there. The French economy did not experience a housing and consumer credit boom-bust cycle, and unlike Germany and Sweden is not reliant on export led manufacturing and thus is less exposed to global trade. The industrial sector shows particularly good value with prime yields of circa 8-9% and relatively low rent levels. In addition to a more robust economic base, there is high social welfare provision, which will help support consumption.

5


Investment Manager’s Report for the period ended 30 September 2009 (continued) Economics (continued) Europe (continued) The retail sector also has restricted supply and thus GMMs sees good long-term growth potential in this market. GMM continues to hold a relatively negative view for Germany given the lack of market re-pricing seen compared to other major European markets.

Asia Pacific

The economic outlook for Asia continues to improve and has benefitted from the monetary expansion seen in China, which has boosted activity. Australia has only suffered a relatively mild recession and in doing so has shown the best performance of all developed economies. This was due to both the domestic policy stimulus and continued commodity demand. Additionally property yields in Australia have corrected in line with other more transparent markets and given the relatively healthy occupier conditions, reflect good long term value.

Japan’s economy and occupier markets remain weak with equally poor prospects going forwards. Vacancy rates are increasing and given the severe employment contraction expected current real estate market pricing has not adjusted sufficiently to compensate. However, GMM sees attractive opportunities arising from capital market distress in debt and related strategies whereby it is possible to acquire assets on a heavily discounted basis. Other developed markets such as Singapore and Hong Kong have benefitted from the upturn in global trade and improvement in trade finance, although the prospects for the various market sectors are mixed. Owing to the surge in bank lending that has been seen, the Chinese economy has grown significantly and is likely to overshoot its stated growth target of 8.0%. However, we are becoming increasingly concerned that the Chinese real estate market is overheating due to high domestic liquidity. The main office markets remain oversupplied and the pricing of recent transactions appear too aggressive given the risks of investing there.

Americas The US economy is anticipated to emerge from recession during the third quarter. From that point we expect the recovery to be below trend although, on balance, we now see more upside than downside risk. This is particularly true of the labour market situation which has the potential to recover to full employment levels by 2013. However, high prevailing unemployment is negatively impacting domestic demand. Thus we expect occupier markets to remain weak with a modest recovery starting during the latter part of 2011. Although subdued, we believe that the Canadian economy and occupier market is more robust and unlikely to see the same degree of rental declines that are expected in the US. At a sector level GMM continues to favour the industrial sector but we have also upgraded prospects for a number of office markets, in particular, New York. These markets have seen substantial peak-to-trough rental value falls, and together with relatively high yields, are attractively positioned. Whilst occupier market conditions are healthier in the apartment sector we believe that yields have been bid down too low so as to offer good relative value and this can be attributed to the continued availability of debt finance in this sector. Distressed opportunities still persist, in particular non-performing loan strategies. Also, due to the lack of available debt finance and significant volume of re-financings due, we believe mezzanine capital is an attractive strategy given current pricing levels and the downside protection that it affords.

The outlook for the Latin American economies has also improved but significant risks still remain in this region. Latin American economic performance is expected to outperform global growth over the next two to three years.

6


Investment Manager’s Report for the period ended 30 September 2009 (continued) Economics (continued) Americas (continued) We are more comfortable with prospects for Brazil, whose economy is expected to be the best performer in the region over the coming medium-term. However, even assuming sustained occupier demand, the potential for re-pricing is high, making the region relatively unattractive at this point although this is likely to change as we progress into 2010. The model portfolio A quarterly revision of the GREFF model portfolio has been undertaken in order to reflect CBRE Investors latest house views of the global property market. Geographically we believe the best value lies in the most developed and transparent markets, notably Australia, France, the UK and US, where the valuation declines have been greatest. In Europe the UK continues to be attractively priced on a long-term basis, although the market has seen valuation increases during the third quarter. As a consequence we have modestly reduced the UK allocation in favour of Continental Europe and if this valuation uplift continues then the UK allocation will be further reduced. Within Continental Europe we continue to hold an overweight position to France and an underweight one to Germany, owing to the relative strength of occupier conditions and market pricing. We have a positive view for the US given the extent of re-pricing seen and the key issue will be investing on a tax efficient basis. Our preferred market in Asia continues to be Australia which has an overweight position, as it has seen significant peak-to-trough valuation declines, but unlike other developed markets is only anticipated to see relatively muted occupier market downturn through the cycle. Like the UK this market has seen yields stabilise and in some instances fall as investor interest has returned. We have also reduced the Chinese allocation due to growing concerns that the market may be overheating, given the pricing seen in recent transactions. Equity investing in Japan appears relatively unattractive given weak occupier market conditions and insufficient yield increases to compensate thus far. However, distress is emerging in Japan which is creating opportunities, for instance in distressed debt strategies.

There have been no adjustments to the sector allocations and we continue to have a preference for sectors with the most cash flow stability. These include shopping centres and retail parks in supply constrained markets; select residential markets; and industrial/logistic assets which provide high, stable income streams. We have a preference for hypermarket anchored retail asset types, particularly in Continental Europe, Australia and it is the only retail asset type that we favour in the US. We see good value in the industrial market in the US, France, and the UK. In all cases GMM has a preference for prime over secondary assets due to more sustainable cash-flows over the coming medium-term. Generally GMM considers CBD office markets to be relatively overvalued due to substantial expected income falls as a result of the financial crisis. However, GMM see value in select markets where the bulk of the expected peak-to-trough rental falls has already taken place and these lower rental levels are factored into market pricing. This is particularly true of markets such New York and Sydney where there is also a tight supply pipeline going forwards. In all cases GMM is looking to avoid near term leasing risk in this sector given falling rents and ongoing weakness in tenant demand.

As noted in the previous quarterly report debt investments are priced to deliver attractive returns, due to a shortage of available finance from traditional sources and continued capital market disruption.

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Investment Manager’s Report for the period ended 30 September 2009 (continued) The model portfolio (continued) The US is the main investable debt market, followed by the UK, and Japan. We see attractive opportunities in mezzanine finance which is characterised by high income returns and equity protection due to it not being in the ‘first-loss’ position in the capital structure. The model portfolio allocations to countries and sectors are displayed in Figures 1 and 2 below. Figure 1: Model portfolio country allocations

Emerging Asia12.5%

Emerging10.0% Developed Asia

27.5%

Europe40.0%

North America10.0%

Source: CBREInv, September 2009

Figure 2: Model portfolio sector allocations

Office27.5%

Retail30.0%

Industrial22.5%

Residential10.0%

Other10.0%


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Investment Manager’s Report for the period ended 30 September 2009 (continued)

Investment activity ING Clarion Debt Opportunity Fund III During the third quarter, GREFF has committed $7.5 million to the ING Clarion Debt Opportunity Fund III. ING Clarion represents an opportunity to participate in a specialist US focused debt fund targeting in Commercial Mortgage Backed Securities (CMBS) and high-yielding commercial real estate debt. ING Clarion believes it can achieve an attractive net IRR of approximately 15% and a 9%+ annual cash yield while limiting leverage to no more than a 60% loan-to value ratio.

We continue to review opportunities across all regions and are actively analysing the following types of investments: • Existing closed ended funds with high quality portfolios, which can be acquired at a sufficiently

deep discount to Net Asset Value (“NAV”) to offset likely future falls in value of the underlying properties;

• New “blind pool” funds, which have the opportunity to buy properties from distressed sellers over the next 24 months.

• Debt investments which are priced to deliver attractive returns, due to a shortage of available finance from traditional sources and continued capital market disruption. The US is the main investable debt market, followed by the UK, and Japan. We see opportunities in selective senior CMBS, mezzanine finance which is characterized by high income returns and additional equity participation, and in significantly discounted performing and non-performing loans.

We expect to make further investments during the final quarter of 2009.

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Portfolio Composition

At 30 September the portfolio comprised 11 funds with an invested value of €20.8 million and undrawn commitments of €37.9m. Table 2: portfolio composition as at 30 September 2009

Fund Value (€’000)

Undrawn Commitment

(€’000)

Total (€’000)

% of Total

Captiva Capital GP III Fund 1,882.3 2,942.8 4,825.1 7.9%

CB Richard Ellis Strategic Partners Asia II 1,332.1 4,135 5,467.0 8.% (1)

Cordea Savills Italian Opportunities II 1,448.0 1,628.2 3,076.2 5.0%

Freo Germany II Partners SICAR 1,885.5 3,613.4 5,498.9 9.0%

ING Clarion 1,392.3 3,814.5 5,206.8 8.5% (1)

Macquarie Global Property Asia Fund III 922.3 3,732.4 4,654.7 7.6% (1)

Niam Nordic Investment Fund IV 4,619.4 5,119.2 9,738.6 15.9%

Prupim Vietnam Property Fund 84.1 4,918.1 5,002.2 8.2% (1)

STAM REI III SCA 4,015.0 1,335.6 5,350.6 8.7%

Tishman Speyer Brazil Fund 2,195.2 2,740.0 4,935.2 8.1% (2)

Tishman Speyer China Fund 1,065.7 3,873.2 4,938.9 8.1% (1)

Total investment in funds 20,841.9 37,852.4 60,455.5 96.0

Cash 2,158.8 - 2,158.8 3.5%

Other Assets 318.4 - 318.4 0.5%

Other Liabilities - - - -

Total NAV 23,319.1 37,852.4 61,171.4 100%

(1) This is a USD denominated fund. The valuation has been calculated using the spot rate as at 30 September 2009 of 1.4617

(2) This fund is denominated in Brazilian Reais. The valuation has been calculated using the spot rate as at 30 September

2009 of 2.6042.

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Investment Manager’s Report for the period ended 30 September 2009 (continued) Drawdown profile GREFF had drawn down 37% of capital commitments from investors as at 30 September 2009. A further 8% was drawn in October, bringing the total to 45% drawn. Figure 5: Expected drawdown profile


It must be emphasised that the drawdown profile is dependent on each fund’s progress with property acquisitions and cannot be predicted with certainty. We will regularly update our view based upon progress with new investments and discussions with managers of funds in which we have invested. NAV performance since inception

Figure 6: NAV history since inception


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Investment Manager’s Report for the period ended 30 September 2009 (continued) NAV performance since inception (continued) There has been a sharp fall in NAV for all share classes from the peak in performance reached in July 2008. This has been due to the effects of the current economic crisis, which has caused property values to fall globally.

Portfolio returns for quarter to September 2009 GREFF’s overall objective is to achieve a total return in the range of 13 – 15% per annum (net). The figure below shows the individual fund performance for the quarter ended September 2009. Due to reporting cut off dates the performance reported for Q3 is largely based on Q2 NAVs. In Q2 yields continued to shift outwards in all markets leading to the negative return over the quarter. This was amplified for funds that utilised bank debt. In Q3 we have started to see yields stabilise across all markets particularly for prime property although weakness remains on the occupier side with income streams still under threat which will have a negative impact on valuations going forward. Figure 7: Quarterly underlying fund performance


-70%-65%-60%-55%-50%-45%-40%-35%-30%-25%-20%-15%-10%

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Portfolio returns for the last 12 months

Figure 8: Fund performance (last 12 months)


Notes: • The Tishman Speyer Brazil Fund’s returns above are based on the value of the investment in

local currency (Brazilian Reais). • Prupim Vietnam Property Fund is still in its investment period and has drawn 3.1% of equity to

date.

The contribution of each fund in GREFF’s portfolio to the decline in value has been detailed in Table 6 and Figure 9 respectively. As the table shows, the principal contributors to the fall in value are MGPA, Strategic Partners II and Cordea Savills Italian Opportunities Fund II. For many of the funds, there is a fall in value, but this is on a small amount of capital drawn so the impact at the GREFF level is less significant. In general these funds have been disciplined with their capital and have waited for prices to fall before making investments. Given the market correction, the early deals they have done are in most cases worth less than cost, but they are well placed to invest the remaining capital at very attractive prices.

-110%-100%

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Investment Manager’s Report for the period ended 30 September 2009 (continued) Figure 9: GREFF Portfolio – Contributors to negative performance


Commentary on underlying funds performance

The Niam Nordic IV Fund produced a return of 6.8% over the quarter and -4.3% over the last 12 months. The positive return was due to the first distribution of the fund in July. This distribution has been generated from cash flow from the Sweden Vasa Office Portfolio, Malmö (Sweden Industrial Portfolio), Högdalen (Sweden Vasa Office Portfolio) and Finland Retail Portfolio II. During Q2 2009, Niam IV conducted internal market valuations for the Sweden Industrial Portfolio and Finland Retail Portfolio II. An external market valuation performed was performed for the Sweden Vasa Office Portfolio. The market valuations resulted in a gross property value of €721 million (Q1: €719 million). Total debt at the property level as of June 30, 2009 amounted to €484 million, representing an average LTV of 67% with an average interest rate of 3.2%. On September 1, 2009 Niam IV closed two deals, a retail portfolio in Sweden and an office portfolio in Norway, with a total combined purchase price of €260 million. The Sweden Retail Portfolio was purchased for €96 million (all in cost) and consists of seven properties in southern and central Sweden. The Norway Office Portfolio was purchased for €162 million (all in cost) and consists of three office properties and one hotel in Oslo and Trondheim.

The STAM REI III Fund returned 0.6% over the quarter and 18.0% over the last 12 months. Performance has remained relatively flat during the quarter. The fund has recently purchased a former Natixis portfolio which includes nine assets. STAM have already started leasing up the assets with the current occupancy rate at 62% and running yield at above 8%. The existing portfolio is well diversified, but there is some downside valuation risk on existing assets particularly on one office asset located in central Paris. The business plan at the time of purchase involved a major refurbishment and re-leasing of the building. Since the acquisition the leasing market has weakened eroding the potential profit margin. The fund has an LTV of 57% against a covenant of 65% and has 25% of equity undrawn.

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Investment Manager’s Report for the period ended 30 September 2009 (continued) Commentary on underlying funds performance (continued) The Tishman Speyer China Fund produced a return of -0.8% for the quarter and -4.1% over the last 12 months. There was no further deterioration in the values of the assets across the portfolio during the recent quarter. This is reflective of the improving economic and market fundamentals on the back of the strong China stimulus measures taken over the past 12 months. The fund has called 24.7% of commitments from investors for the existing four projects. The key for the funds expected return will be the outcome of discussions with government authorities on the Jiang Wan site and Tishman’s ability to stage the development through an option arrangement. The site was bought at very competitive pricing, some 50% below those of recent transactions in the area. If discussions are successful this is expected to be very positive for the fund. In terms of construction progress, work is to start on the Chengdu Dao in Tianjin and the Chengdu development in the final quarter of 2009. With 59% of capital yet to commit and no leverage across the existing portfolio we continue to forecast the fund to deliver a net IRR of circa 15%, but expect this number to have further upside if the discussions on Jiang Wan are successful. An outcome of these negotiations is expected in Q4 2009.

The Captiva III Fund produced a return of -1.5% over the quarter and -8.3% over the last 12 months. The negative return in the quarter is driven by asset value falls. The portfolio value fell by €5.4 million as a result of external valuations on the Bayer and Mercurio assets and a 1.5% provision on all other assets. No new investments were approved in the period. The current fund level LTV is 68.8% and no covenants have been breached. The LTV will be reduced as further investments are made. Management are having on-going and regular discussions with current and prospective lenders in order to either negotiate new facilities or look to re-purchase existing loans at discounts to par. The fund is currently 42% drawn and therefore has significant equity with which to make further investments. The Tishman Speyer Brazil Fund returned -1.9% over the quarter and -14.2% over the last 12 months. The value of the property portfolio remained stable over the second quarter. The negative return in the quarter was driven by the accounting treatment of certain costs and fees which led to an operating loss. The investment period for the fund ended in April 2008, with the nine projects of the fund currently having drawn 45% of commitments. The current return net to investors is projected at 10.5%, a 100bp decline from Q408 projections, though GMM has lowered its projections to show a 9% IRR. The current strategy is to hold and build projects where they see long-term value and exit projects early where they do not see the same prospects. The lack of debt, coupled with the firm’s flexible approach to the exit strategy and timing of each asset should allow Tishman to maximize whatever value they can given the current investment climate. If the economic recovery in Brazil should take hold sooner than the developed world, a theory being discussed by many economists, than this fund may be able to capitalize and deliver a slightly higher return than GMM is currently forecasting.

The Cordea Savills Italian Opportunities Fund returned -2.0% over the quarter and -58.1% over the last 12 months. Post quarter-end the Streamline project completed (contribution and refinancing of the CII and Lear assets into the Teodora Fund), stabilising the portfolio to a large extent, although discussions will continue into September in relation to restructuring elements of the junior loan. Carciano S.r.l. filed for bankruptcy though discussions are still ongoing with the vendor as to whether they will step in and take back the finance lease. The focus for the JV Housing portfolio is to find a restructuring solution for the Duse portion of the portfolio (under the demerger proposal, in which Aedes would be responsible for a controlled liquidation of REIF IV assets). Despite considerable efforts from the team in trying to find a solution with the banks, the distressed SPVs will be placed into formal liquidation, although a restructuring is still possible if agreement can be found with the banks during the liquidation process.

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Investment Manager’s Report for the period ended 30 September 2009 (continued) Commentary on underlying funds performance (continued) The Cordea Savills Italian Opportunities Fund will call the remaining equity (€92.2 million) before the end of the investment period (6 November 2009) but they will only ask for a partial payment of €8 million while the remaining €84.2 million will then be drawn, based on a payment programme schedule as determined by the General Partner, which will be provided to investors at the time of issuing the formal draw down notice.

FREO Germany II Partners returned -7.6% over the quarter and -23.0% over the last 12 months. The fund's assets are valued at year end on an annual basis. As all the expenses spent on the development projects are directly expensed and reflected in the NAV, the fund experiences negative returns between the external valuation dates. In September, FREO closed the Munich City Tower transaction. The initial equity requirement is €14.3 million. Before the deal closed, the manager could already let one floor for the underwritten rental value. FREO has hired the former asset and property manager of this property. For the Kudamm 195 asset, a pre-letting activities have started and the fund is in negotiations with high-end retail tenants.

MGPA Asia III L.P. produced a return of -13.0% for the quarter and -109.9% over the last 12 months. Following the substantial writedown in the previous quarter due to IAS40 accounting requirements, the portfolio value remained relatively stable. There have been ongoing discussions between the Investor Advisory Committee (IAC) and the manager regarding the fees paid to the manager given the performance of the fund to date. Agreement has now been reached where investors will receive a fee reduction, and if the fund achieves key performance hurdles the manager has the right to earn back some of this fee reduction. This provides a renewed alignment between the manager and investors. As several of the smaller assets of the fund were largely written back to zero value, the key asset in the fund remains Marina View North & South office developments in Singapore. This development will ultimately determine the return generated by the fund. Although Singapore has seen office demand drop significantly over the past 12 months there are encouraging early signs that this is changing. If the positive sentiment continues to gain pace there is hope that Marina View will be able to achieve its leasing targets. We continue to believe that the fund will likely returns investors equity (equity multiple of 1.0x). As it remains leveraged to the broader Singapore economy and particularly the finance sector, there is hope these returns could improve especially if the supply pipeline reduces over the next 3 years. Further commitments to new acquisitions for the Fund remain suspended until greater clarity is achieved on Marina View. Prupim Vietnam Fund produced a return of -36.6% for the quarter and -89.9% over the last 12 months. The fund is still in the early stages of its investment program. The manager’s prudent approach to allocating capital has placed it in a strong position to avoid the excesses of 2008 and is now positioned to begin funding acquisitions. Prupim has a strong pipeline of opportunities at varying stages, with three active projects where commercial terms have been agreed. Prupim expect to fund one of these projects in late Q4 2009 and the other two in early 2010. The fund has an ongoing focus on residential projects in Hoi Chi Minh City and to a lesser degree Hanoi, where the market conditions remain strong. The demand for quality apartments and townhouses in these key cities continues to build and there is expectation of pricing gradually increasing over the next few years. Overall, the fund is investing at the right time in the cycle where a number of other players are constrained allowing it to achieve attractive entry prices. During Q4 2009, GMM will be visiting the manager in Vietnam to understand and examine the pipeline in greater detail.

16


Investment Manager’s Report for the period ended 30 September 2009 (continued) Commentary on underlying funds performance (continued) CB Richard Ellis Strategic Partners Asia II has produced a -66.2% return for the quarter, with the portfolio nearing a bottom, and -100.0% over the last 12 months. During the recent quarter the fund continued to draw further capital from investors in order to pay down the debt subscription line, which previously meant the portfolio was nearly entirely funded through debt. This is something that we have encouraged management to do quickly in order to limit the significant volatility in returns seen over recent quarters. The end of the fund's commitment period is January 2010 and we expect further capital drawdowns in Q4 2009 as the subscription line continues to be paid down. The China assets in the portfolio have started to see more positive sentiment which remains reflective of the overall economic environment in the country. There is the possibility of early realisations on several of the properties in China and these are in the process of being negotiated and we expect positive news in coming quarters. The manager continues to work toward exiting the remaining two forward commitments in Japan, and they remain hopeful that this will be possible although there will be associated penalties (albeit far less than if they proceeded). Overall, the portfolio in Japan is approaching a bottom in value with further positive news on exiting the forward commitments expected. In China, the strong economic performance is being reflected in the portfolio assets with the prospect for some near term realizations that should provide a boost to performance.

Investment Restrictions imposed by Management Agreement The fund is still in the process of being constructed; hence it is not yet appropriate to compare the shape of the portfolio to the investment restrictions imposed. Full details of the restrictions are as follows: The fund will not invest in closed ended investment funds with a longer initial duration than that of the fund. No such funds have been invested in. No single investment fund should represent more than 15% of the Gross Asset Value. No single fund represents more than 15% of the GAV. Maximum of 50% to be invested in any single sector. 46% is invested in the Office sector at present. Not more than 30% of the portfolio should be invested with a single manager. 15.9% is currently invested with Niam. Not own more than 25% of the share capital of any fund. The portfolio does not own more than 25% of the share capital of any fund.

Atrium Investimentos 3 November 2009

17


Portfolio of Investments as at 30 September 2009 NOMINAL SECURITY VALUE EUR FUND % Investments in Real Estate Funds (90.59%) (March 2009: 99.24%) (September 2008: 79.34%) Brazil (9.54%) (March 2009: 12.37%) (September 2008 9.60%)

1 Tishman Speyer Brazil Fund 2,195,167 9.54 Ireland (53.91%) (March 2009:68.46%) (September 2008: 42.29%)

2,057,165 Captiva Capital Partners III L.P 1,882,306 8.18 115,384 Freo Germany II Partners SICAR 1,885,446 8.20

100 Niam Nordic Investment Fund IV 4,619,374 20.08276,356 Stam REI III Fund 4,014,999 17.45

Luxembourg (6.29%) (March 2009: 10.15%) (September 2008: -%)

315,088 Cordea Savills Italian Opportunities Fund 2 1,448,051 6.29

United States (20.85%) (March 2009: 8.26%) (September 2008: 10.76%)

1 CB Richard Ellis Strategic Partners Asia II L.P 1,332,052 5.791 ING Clarion Debt Opportunity Fund 1,392,331 6.05

12,650 Macquarie Global Property Asia III L.P 922,284 4.0175,000 Prupim Vietnam Property Fund 84,149 0.37

1 Tishman Speyer China Feeder Fund 1,065,679 4.63 Total Investments in Real Estate Funds 20,841,838 90.59 Investments in Money Market Funds (8.20%) (March 2009: 3.02%) (September 2008: 19.63%) Portugal (8.20) (March 2009: 3.01%) (September 2008: -%)

1,887,118 SSGA Euro Liquidity Funds 1,887,118 8.20 Total Investments in Money Market Funds 1,887,118 8.20 Portfolio of Investments (Cost: 30,197,994) 22,728,956 98.79

Debtors 83 - Unrealised gain on forward foreign currency contracts 65,982 0.29 Cash and Bank Balances 336,695 1.46 Total Assets 23,131,716 100.54 Creditors (91,027) (0.39) Unrealised loss on forward foreign currency contracts (34,509) (0.15)

Net Asset Value as at 30 September 2009 23,006,180 100.00

18


Portfolio of Investments as at 30 September 2009 (continued)

30/09/2009 31/03/2009 30/09/2008Dealing Net Asset Value (Note 7) 23,319,057 16,973,999 20,934,259 Number of Participating Shares in issue Class A 40,030 23,760 23,760Class B 151,521 91,533 91,533Class C 13,378 7,890 7,890Class B USD 188,970 112,743 112,743Class C USD 10,094 5,556 5,556 Dealing Net Asset Value per Participating Share Class A €68.87 €80.59 €101.13Class B €69.36 €81.09 €101.65Class C €67.43 €78.15 €98.92Class B USD $67.35 $78.95 $100.48Class C USD $64.74 $75.53 $96.72

* Country designation is based on the country of domicile of the underlying fund and not on the market into which it is invested.

19


Portfolio Changes for the period ending 30 September 2009

MAJOR PURCHASES* Cost EURSSGA EUR Liquidity Funds 6,410,000SSGA USD Liquidity Funds 4,290,896Freo Germany II Partners SICAR 843,696ING Clarion Debt Opportunity Fund 816,652Captiva Capital Partners III L.P 93,187

MAJOR SALES* Proceeds EURSSGA EUR Liquidity Funds 4,970,000SSGA USD Liquidity Funds 4,125,436 *Represents all purchases and sales in the period.

Note: Copies of all portfolio changes are available, free of charge, from the Manager.

20


Profit and Loss Account for the period ending 30 September 2009

There are no recognised gains or losses arising in the period other than the decrease in Net Assets Attributable to Participating Shareholders resulting from operations.

In arriving at the results for the financial period, all amounts above relate to continuing operations.

The Notes 1 to 20 form an integral part of the financial statements.

NotePeriod ended

30/09/2009

Year ended

31/03/2009

Period ended

30/09/2008 EUR EUR EUR Net (losses)/gains on financial assets & liabilities at fair value through profit or loss - held for trading 8 (911,328) (5,727,059) 1,696,494 Foreign exchange (losses)/ gains 9 (416,208) 291,577 (696,753) Investment income 10 247,485 113,577 54,056 Expenses 11 (352,813) (660,378) (358,432) Net (decrease)/increase in Net Assets attributable to Participating Shareholders (1,432,864) (5,982,283) 695,365

21


Balance Sheet as at 30 September 2009 Note 30/09/2009 31/03/2009 30/09/2008 EUR EUR EUR Assets Financial assets at fair value through profit or loss 1 22,728,956 14,884,453 20,502,124 Debtors and prepayments 4 83 2,333 5,103 Cash and bank balances 5 336,695 213,358 111,420 Unrealised gain on forward foreign currency contracts 13 65,982 164,529 323,458 23,131,716 15,264,673 20,942,105Less Current Liabilities Creditors (Amounts falling due within one year) 6 (91,027) (1,160,344) (87,669) Unrealised loss on forward foreign currency contracts 13 (34,509) (67,353) (139,812) Net Assets Attributable to Participating Shareholders 23,006,180 14,036,976 20,714,624


22


Statement of Changes in Net Assets Attributable to Participating Shareholders for the period ended 30 September 2009

NotePeriod Ended

30/09/2009Year Ended

31/03/2009 Period Ended

30/09/2008EUR EUR EUR

Net assets at the beginning of the period/year 14,036,976 19,013,439 19,013,439 Movement due to sales and repurchase of Participating Shares

Issue of Shares 10,402,068 1,005,820 1,005,820 24,439,044 20,019,259 20,019,259 Net (decrease)/increase in net assets attributable to Participating Shareholders’ from investment activities (1,432,864)

(5,982,283) 695,365 Net assets attributable to Participating Shareholders at the end of the period/year 7 23,006,180 14,036,976 20,714,624


23


Cash Flow Statement for the period ended 30 September 2009

NoteFor the period

ended 30/09/2009

For the year ended

31/03/2009

For the period ended

30/09/2008 EUR EUR EUR Cash flow from operating activities 12 (7,167,221) 23,548 (461,495) Capital expenditure and financial investments Purchase of financial assets (12,454,431) (17,508,498) (8,617,208)Sales of financial assets 9,095,436 16,437,701 7,989,038 (3,358,995) (1,070,797) (628,170) Returns on investments and servicing of finance

Interest income received 10 93 4,171 4,056Dividend income 10 247,392 109,406 50,000 247,485 113,577 54,056 Financing Proceeds from issue of shares 10,402,068 1,005,820 1,005,819 (Decrease)/ Increase in cash 123,337 72,148 (29,790) Opening Cash 213,358 141,210 141,210 Closing Cash 336,695 213,358 111,420


24

GREFF GLOBAL REAL ESTATE FUND OF FUNDS PLC Notes to the Financial Statements for the period ending 30 September 2009

1. Accounting Policies for the period ended 30 September 2009

Basis of preparation These financial statements have been prepared in accordance with the ASB Statement: Half Yearly reports and with the Companies Acts, 1963 to 2009, the listing rules of the Irish Stock Exchange and the reporting requirements of the EU Transparency Directive for closed-ended Funds. The interim financial statements should be read in conjunction with the annual financial statements for the year ended 31 March 2009 which have been prepared in accordance with accounting standards generally accepted in Ireland. Accounting standards generally accepted in Ireland are those published by the Institute of Chartered Accountants in Ireland and issued by the Accounting Standards Board.

a) Valuation of investments

In accordance with FRS 26 Financial Instruments: Recognition and Measurement, all of the Fund’s investments are classified as fair value through profit or loss. Financial assets and liabilities held for trading are securities which were either acquired for generating a profit from short-term fluctuations in price or dealer margins, or are included in a portfolio where a pattern of short-term trading exists. Under Financial Reporting Standard 26 (‘FRS 26’) derivatives and short positions unless designated as effective hedging instruments are always deemed held for trading. While positions within the portfolio will often be held with a view to long term capital gains. The Fund also undertakes short term trading and, accordingly, for the purpose of FRS 26, the Directors have classified the Fund’s portfolio as financial assets and liabilities held for trading. Investments held for trading are initially recognised at fair value, excluding transaction costs, and subsequently re-measured at fair value at each valuation date. Investments listed on a recognised stock exchange or quoted in an active market are valued at the last available bid price, or in the event that there should be several such markets, on the basis of the last available price on the main market for the relevant investment. Shares in investment funds are valued at the last available Net Asset Value per share calculated by the administrators of these Funds. For newly acquired positions in investment funds where no up to date performance or Net Asset Value is available, these are valued at original transaction cost. All related unrealised gains and losses arising from changes in the fair value of investments are recognised in the Profit and Loss Account as they arise. The valuation results using the policy in accordance with accounting principles generally accepted in Ireland is not significantly different from that using the valuation policy in accordance with the Company’s Prospectus. Investment transactions are accounted for on their trade dates. Realised gains or losses on investment transactions are determined on the basis of the average cost of the investments sold. All realised and unrealised gains or losses on investments are recognised in the Profit and Loss Account in the period in which they occur. b) Interest Income Interest income is recognized on an effective yield basis.

25

GREFF GLOBAL REAL ESTATE FUND OF FUNDS PLC Notes to the Financial Statements for the period ending 30 September 2009 (continued) 1. Accounting Policies for the period ended 30 September 2009 (continued)

c) Distribution Policy

The Directors intend to declare a semi-annual dividend (the “Dividend”) to the Participating Shareholders on the last Business Day of March and September in each year, (each, a “Dividend Declaration Date”) based on the net investment income of the Fund on an income received basis. The Dividend is payable by telegraphic transfer within 30 Business Days of the Dividend Declaration Date (the “Dividend Payment Date”), subject to foreign exchange regulations applicable in the country where the payment has been requested to be made or other delays.

The amount of the Dividends will be determined at the discretion of the Directors less any applicable deduction for performance fee. No distributions were declared during the period. (31 March 2009: Nil) (30 September 2008: Nil). d) Capital Commitments The Fund will make capital commitments to target underlying funds which will draw down capital over time. The underlying fund will issue capital calls at various intervals which will have reasonable notice periods of usually 10-14 days. The Fund will account for such capital calls when settled upon payment. e) Foreign exchange Monetary foreign currency assets and liabilities are translated into Euro at the exchange rate prevailing at the period end. The foreign exchange gain or loss based on the translation of the original cost of the investments is included in net gains or losses on investments in the Profit and Loss Account. The foreign exchange gain or loss on the translation of other assets or liabilities is included in other gains or losses in the Profit and Loss Account. Realised gains and losses arising between the translation and settlement dates on purchases or sales of non - Euro investments are included in other gains or losses in the Profit and Loss Account. Realised gains and losses on foreign exchange and unrealised gains and losses on foreign exchange are included in the Profit and Loss Account. Assets and liabilities denominated in foreign currencies are translated into Euro at the period end exchange rates. Transactions during the period are translated at the rate of exchange prevailing on the date of the transaction. Foreign currency translation gains and losses are included in the Profit and Loss Account.

f) Functional and Presentation Currency

Items included in the Company's financial statements are measured using the functional currency. The functional currency is dependent on the economic environment in which a Fund operates. The economic environment can be determined by the predominant currency of the markets in which the Funds invest or by the predominant denomination of the issued share capital.

The functional currency for the Fund is EUR. g) Dividend Income

Dividend income arising on the underlying equity investments of the Company is recognised as income of the Company on the ex-dividend date. Income is shown gross of any non-recoverable withholding taxes, which is disclosed separately in the Profit and Loss Account, and net of any tax credits.

26


Notes to the Financial Statements for the period ending 30 September 2009 (continued)

1. Accounting Policies for the period ended 30 September 2009 (continued) h) Participating Shares

Participating Shares are redeemable on termination of the Company and are classified as financial liabilities. i) Earnings per Share

As disclosed in Note 16, the company has limited life therefore shares issued are classified as financial liabilities rather than ordinary shares. Therefore, company is not required to present earnings per share required under FRS 22.

2. Significant Agreements

Administrator The Administrator is entitled to a fee, payable out of the assets of the Fund, at a rate of 0.1% per annum, up to and including the first €100 million of the Net Asset Value of the Fund and in respect of any excess thereafter, at a rate of 0.08% per annum of the Net Asset Value of the Company, accruing monthly and is payable monthly in arrears, subject to a minimum monthly fee of €7,000 in respect of the Fund (€5,500 per month for the first year of the lifetime of the Fund).The Administrator is also entitled to be reimbursed for all agreed transaction fees and out of pocket expenses properly incurred by it in the performance of its duties and responsibilities under the Administration Agreement. All such fees and expenses are borne by the Fund. The administration fee for the period ended 30 September 2009 was €42,000 (31 March 2009: €84,000) (30 September 2008: €42,000), of which €14,000 (31 March 2009: €14,000) (30 September 2008: €14,000) was payable at the period end.

Custodian The Custodian is entitled to a fee of 0.03% per annum of the Net Asset Value of the Fund accruing monthly and be payable monthly in arrears out of the assets of the Fund.

The Custodian is also be entitled to be reimbursed for all agreed transaction fees and out of pocket expenses properly incurred by it in the performance of its duties. The Custodian also charges third party transaction fees and sub-custodian fees at normal commercial rates. The Custodian fee for the period ended 30 September 2009 was €2,528 (31 March 2009: €7,818) (30 September 2008: €3,915), of which €1,161 (31 March 2009: €1,197) (30 September 2008: €1,312) was payable at the period end.

Investment Manager The Company pays monthly to the Investment Manager a fee calculated for each Class of Shares as 1/12th of the percentages of the Net Asset Value as follows: Class A 0.75%, Class B 0.625%, Class C 0.5% and Class D 0.75%.The Investment Manager is also entitled to a fee of 0.25% of the amount of committed but unpaid capital for Shares in the Fund. These fees accrue and are payable monthly in arrears out of the assets of the Company. The management fee for the period ended 30 September 2009 was €153,740 (31 March 2009: €346,918) (30 September 2008: €168,834), of which €56,149 (31 March 2009: €58,419) (30 September 2008: €59,325) was payable at the period end. Performance Fee In addition to management fees, the Investment Manager is also entitled to charge a performance fee to 15% of the excess Total Return per Share of the Fund (as defined below) over the Hurdle Return per Share of the Fund (as defined below) (the “Performance Period”), subject to recovery of any losses in previous Performance Periods (the “Performance Fee”). The Total Return per Share is the increase in the Net Asset Value per Share attributable to the performance in the period and not to drawdowns of capital, together with any dividends declared in the Performance Period attributable to Shares.

27

GREFF GLOBAL REAL ESTATE FUND OF FUNDS PLC Notes to the Financial Statements for the period ending 30 September 2009 (continued) 2. Significant Agreements (continued) Performance Fee (continued) The Hurdle Return per Share is the average capital employed (being the opening Net Asset Value per Share plus or minus the time weighted average amount of capital drawn down/redeemed during the performance fee period) multiplied by the year on year increase in the Consumer Price Index in the Eurozone plus 4% (Bloomberg Code: ECCPEMUY). For the purposes of calculating the current Performance Fee, while the relevant performance of the Total Return per Share over the previous Performance Period is less than the Hurdle Return per Share over that Performance Period, the amount of such underperformance shall be deducted from the relevant performance in the current Performance Period and any subsequent Performance Periods.

The Performance Fee is calculated at the end of each fiscal year commencing on 31 March 2007 and will be payable within 30 days of the end of each performance fee period. The first performance fee period was the fiscal year end from the close of the Initial Offer Period to 31 March 2007 and the starting point was the Initial Offer Price. No performance fee was accrued during the period. (31 March 2009: Nil) (30 September 2008: Nil) Set Up Fee The Investment Manager is entitled at the end of the Initial Offer Period and on each Closing Date to a once-off set up fee equal to 1% of the total subscription amount/commitment during the Initial Offer Period or for each Subsequent Closing Date (as appropriate). Such set up fees are typically written-off over a ten year period. However, these figures are written-off over the relevant financial period in which they are incurred to comply with Irish GAAP. A reconciliation is prepared in Note 7 which explains the difference between the dealing Net Asset Value and the Net Asset Value per the financial statements.

Directors Fee Each independent Director shall be entitled to a fee and remuneration for his/her services in respect of the Company at a rate to be determined from time to time by the Directors. The fees of any independent Director in any accounting period shall not exceed €20,000 without the approval of the Board. Any increase in Directors’ remuneration above that figure will be notified in advance to participating shareholders but will not take effect until two weeks after such notification has been given.

3. Taxation Under current law and practice the Company qualifies as an investment undertaking as defined in Section 739B of the Taxes Consolidation Act, 1997, as amended. On that basis, it is not chargeable to Irish tax on its income and gains. However, Irish tax may arise on the happening of a “chargeable” event. A chargeable event includes any distribution payments to Participating Shareholders or any encashment, redemption, cancellation or transfer of participating shares. No Irish tax will arise on the Company in respect of chargeable events in respect of:

(a) a Participating Shareholder who is neither Irish resident nor ordinarily resident in Ireland for tax purposes, at the time of the chargeable event, provided appropriate valid declarations in accordance with the provisions of the Taxes Consolidation Act, 1997, as amended, are held by the Company; and

(b) certain exempted Irish tax resident Participating Shareholders who have provided the

Company with the necessary signed statutory declarations. Dividends, interest and capital gains (if any) received on investments made by the Company may be subject to withholding taxes imposed by the country from which the investment income / gains are received and such taxes may not be recoverable by the Company or its Participating Shareholders.

28

GREFF GLOBAL REAL ESTATE FUND OF FUNDS PLC Notes to the Financial Statements for the period ending 30 September 2009 (continued)

30/09/2009 31/03/2009 30/09/20084. Debtors and prepayments EUR EUR EUR Other Debtors 83 2,333 4,583Listing Fees - - 520 83 2,333 5,103 5. Cash and Bank Balances All residual cash is held with State Street Bank and Trust Company. 6. Creditors (Amounts falling due within 1 year) 30/09/2009 31/03/2009 30/09/2008 EUR EUR EURAccrued Expenses Payable for investments purchased - (1,058,667) -Management fees (56,149) (58,419) (59,325)Administration fees (14,000) (14,000) (14,000)Custody fees (1,161) (1,197) (1,312)Audit fees (7,882) (17,646) (7,058)Directors’ fees - - -Listing Fees (179) (1,820) -Distribution fees (11,656) (8,595) (5,974) (91,027) (1,160,344) (87,669) 7. Net Asset Value Reconciliation

The Company incurred set up costs of €312,877 (31 March 2009: €206,581) (30 September 2008: €219,635) during the period which related to subscriptions into the Fund. Set up costs are written off over 10 year period in line with the Prospectus. However, Irish Accounting Standards require such costs to be written off over one year. This difference in accounting treatment has resulted in a different Net Asset Value being reported under Irish GAAP when compared to the dealing Net Asset Value. 30/09/2009 31/03/2009 30/09/2008 EUR EUR EURDealing Net Asset Value 23,319,057 16,973,999 20,934,259 Write off of unamortised set up fee (312,877) (206,581) (219,635)Adjusted NAV movements - (2,730,442) - Net Asset Value per Financial Statements 23,006,180 14,036,976 20,714,624 8. Net losses on financial assets and liabilities through Profit or Loss – held for trading 30/09/2009 31/03/2009 30/09/2008 EUR EUR EURProceeds from sales 9,095,436 16,437,701 12,990,384Original cost of investments sold during the period (9,231,957) (15,680,580) (12,539,124)Gains/(losses) realised on investments sold during the period (136,521) 757,121 451,260

Total unrealised movement for the period (774,807) (6,484,180) 1,245,234 Net gains/(losses) on financial assets and liabilities through Profit or Loss - held for trading (911,328) (5,727,059) 1,696,494

29


Notes to the Financial Statements for the period ending 30 September 2009 (continued)

9. Other Gains Period ended Year ended Period ended 30/09/2009 31/03/2009 30/09/2008 EUR EUR EUR Foreign Exchange realised (loss)/ gain (350,505) (87,205) (696,753)Foreign Exchange unrealised (loss)/ gain (65,703) 378,782 -Foreign Exchange (loss)/ gain (416,208) 291,577 (696,753)

10. Investment Income Period ended Year ended Period ended 30/09/2009 31/03/2009 30/09/2008 EUR EUR EURDividend income 247,392 109,406 50,000Interest income received 93 4,171 4,056 247,485 113,577 54,056

11. Expenses Period ended Year ended Period ended 30/09/2009 31/03/2009 30/09/2008 EUR EUR EURManagement fees 153,740 346,918 168,834Custody fees 2,528 7,818 3,915Administration fees 42,000 84,000 42,000Audit fees 10,588 21,175 10,587Director’s fees 6,250 12,500 6,250Listing fees 2,340 4,679 2,340Amoritisation of set up fees 124,825 85,377 85,378Legal fees 7,175 53,327 -Other fees 3,367 44,584 39,128 Total Expenses 352,813 660,378 358,432

12. Cash flow from operating activities 30/09/2009 31/03/2009 30/09/2008

EUR EUR EUROperating gain/ (loss) (1,680,348) (6,095,860) 641,309Net unrealised (depreciation)/ appreciation on financial assets and liabilities 774,807 6,484,180 (1,245,234)Movement in debtors and prepayments 2,250 (1,453) (4,223)Movement in creditors (1,069,317) 1,029,268 (43,407)Net unrealised (loss)/ gain on forward contracts 65,703 (120,701) 183,646Realised (loss)/ gain on foreign cash 8,464 5,652 6,414Other adjusting items (5,268,780) (1,277,538) -Net cash Inflow From Operating Activities (7,167,221) 23,548 (461,495) 13. Efficient Portfolio Management

The Company may on behalf of each Fund employ (subject to the conditions and within the limits laid down by the Financial Regulator) techniques and instruments relating to transferable securities provided that such techniques and instruments are used for efficient portfolio management purposes or to provide protection against exchange risk. During the period, the Manager entered into transactions for the purpose of hedging the currency exposure of any investment which is denominated in a currency other than the base currency of the Fund.

30

GREFF GLOBAL REAL ESTATE FUND OF FUNDS PLC Notes to the Financial Statements for the period ending 30 September 2009 (continued) 13. Efficient Portfolio Management (continued)

The extent to which the Manager will hedge against such currency fluctuations shall not exceed 100% of the Net Asset Value of the relevant investment so that an investment will not be leveraged as a result of these transactions. At 30 September 2009 Greff Real Estate Fund of Funds has a net unrealised gain on forward foreign currency contracts of €65,982 (31 March 2009: €164,529) (30 September 2008: €323,458) and a net unrealised loss of (€34,509) (31 March 2009: €67,353) (30 September 2008: €139,812). This amount is included in net gains to foreign currencies during the period in the Profit and Loss Account and in Debtors on the Balance Sheet.

The forward foreign currency contracts held at 30 September 2009 by Greff Global Real Estate Fund of Funds are as follows:

Currency

Counterparty

Effective

Date Maturity

Date

Amount Bought

Amount

Sold

Unrealised Gain/(Loss)

EUR EUR State Street 18/09/2009 22/12/2009 9,078,250 9,144,232 65,982 EUR State Street 18/09/2009 22/12/2009 4,747,996 4,782,505 (34,509) Net Gain 31,473

The forward foreign currency contracts held at 31 March 2009 by Greff Global Real Estate Fund of Funds are as follows:

Currency

Counterparty

Effective

Date Maturity

Date

Amount Bought

Amount

Sold


EUR EUR State Street 25/03/2009 30/06/2009 8,017,446 8,181,975 164,529 EUR State Street 25/03/2009 30/06/2009 3,231,041 3,298,394 (67,353) Net Gain 97,176

The forward foreign currency contracts held at 30 September 2008 by Greff Global Real Estate Fund of Funds are as follows:

Currency

Counterparty

Effective

Date Maturity

Date

Amount Bought

Amount

Sold


EUR EUR State Street 24/09/2008 29/12/2008 3,557,784 3,697,596 (139,812) EUR State Street 24/09/2008 29/12/2008 8,554,458 8,231,000 323,458 Net Gain 183,646

31

GREFF GLOBAL REAL ESTATE FUND OF FUNDS PLC Notes to the Financial Statements for the period ending 30 September 2009 (continued)

14. Purchases and Sales of Investments during the Period

Period ended Year ended Period ended 30/09/2009 31/03/2009 30/09/2008 Total Purchases 12,454,431 17,508,498 8,617,208 Total Sales 9,095,436 16,437,701 12,990,384

15. Soft Commission Arrangements No soft commission arrangements were entered into during the period. (31 March 2009: Nil) (30 September 2008: Nil). 16. Authorised Share Capital

The authorised share capital of the Fund is five hundred billion sterling (£500,000,000,000) designated as unclassified shares. Shares issued during the Initial Offer Year have been issued on a fully-paid basis and Shares issued on Subsequent Opening Dates shall also be issued on a fully paid basis. The minimum initial subscription amounts for Shares in the Class A (€) Shares must not be less than €250,000 and US$325,000 in the case of the Class A (US$) Share. The minimum initial subscription amounts for Shares in the Class B (€) Shares must not be less than €5,000,000 and US$6,500,000 in the case of the Class B (US$) Shares. The minimum initial subscription amounts for Shares in the Class C (€) Shares must not be less than €250,000 and US$325,000 in the case of the Class C (US$) Shares. Total commitments received amounted to €18,429,984 and $17,697,052 of which €18,429,984 and $17,697,052 has been called as at 30 September 2009. Participating Shares

As the Company is structured as a closed-ended Fund, Participating Shareholders are not entitled to request redemption of their Shares.

It is expected that the Fund will redeem all outstanding Shares within 30 days of the expiration of the duration which will be 10 years unless the Participating Shareholders shall have passed an ordinary resolution to extend the duration by two years. In the event that the duration is so extended, each Participating Shareholder will have the right to redeem its Shares at the Net Asset Value per Share as of the last day of the duration or the second anniversary thereof, as appropriate. Movement in Participating Shares during the period

Class A

EUR Class B

EUR Class C

EUR Class B

USD Class C

USD

Balance at beginning of period 23,760

91,533

7,890

112,743

5,556

Shares issued 16,270 59,988 5,488 76,227 4,538 Shares redeemed - - - - - Balance at end of period 40,030 151,521 13,378 188,970 10,094

32

GREFF GLOBAL REAL ESTATE FUND OF FUNDS PLC Notes to the Financial Statements for the period ending 30 September 2009 (continued) 17. Capital Commitments The Fund has a total Capital commitment of €49,810,768 and $47,829,871 as at 30 September 2009 (31 March 2009: €49,810,768 and $47,829,871). The Fund has drawn down 37% of these commitments in cash. There is an undrawn commitment of €31,380,784 and $30,132,819 as at 30 September 2009(31 March 2009: €37,492,500 and $36,000,000).

18. Related Party Transactions There have been no material related party transactions which require disclosure during the period.

19. Exchange Rates The following Euro exchange rates have been used in this report:

As at 30 September 2009

As at 31 March 2009

As at 30 September 2008

USD 1.46170 1.32770 1.40465

20. Approval of the Financial Statements The Financial Statements were approved by the Directors on 17 November 2009.

33


Appendix 1 - Fees incurred by underlying investments The following table summarises the Investment Management fees and performance fees, which are paid by the underlying investments of the Fund during the period ended 30 September 2009. Fund Name Management Fee Performance Fee Stam REI III Fund 0.75% of GAV; min of €300,000. >9% IRR; 20% to the general partner

and 80 % to the limited partners. >13% IRR; 30% to the general partner and 70% to the limited partners.

Tishman Speyer Brazil Fund 2% pa of total invested equity. >9% 30% to investors and 70% to the GP until the GP has received 20% of aggregate distributions. Thereafter 80% to investors and 20% to the GP.

Prupim Vietnam Property Fund

Annual management fee of 1.75% on committed capital during investment period and then 1.75% on contributed capital thereafter.

Performance fee: >10% IRR; 20% to general partner and 80% to limited partners (catch up of 60% to the general partner and 40% to the limited partners immediately after preferred return is achieved).

Tishman Speyer China Feeder Fund

0.50% annually on total Fund capitalisation (i.e. drawn down commitments plus debt).

Above a 9% preferred return, a catch up involving 30% to all partners pro-rata and 70% to the GP until the GP has received 20% of aggregate distributions. Thereafter 80% to all partners prorate (including the GP regarding its contributions) and 20% to the GP.

Captiva III Fund Limited 1.5% per annum of total commitments during the commitment period and thereafter 1.5% per annum of aggregate capital contributions to the Fund with respect to investments which have not been disposed of.

10% preferred return to investors. Thereafter 50% to the general partner, until the general partner has received a sum equal to 20% of the cumulative cash distributions paid to investors. Thereafter, 80% to the investor and 20% to the general partner.

Niam Nordic Investment Fund IV

1.5% asset management fee during the commitment period; 1.5% on invested equity thereafter.

Performance fee: above a 10% IRR Niam will receive 50% of out-performance up to 20% of cumulative profits, above which the split will be 20:80 in favour of the LPs.

Cordea Savills Opportunities Fund 2

1.5% pa on committed equity 12% preferred return. From 12% to 20% return, 80% to the limited partners and 20% to the general partner. From 20% to 30% return, 70% to the limited partners and 30% to the general partner. Thereafter, 35% to the limited partner and 65% to the general partner.

34


Appendix 1 - Fees incurred by underlying investments (continued) The following table summarises the Investment Management fees and performance fees, which are paid by the underlying investments of the Fund during the period ended 30 September 2009.

Fund Name Management Fee Performance Fee Macquarie Global Property Asia Fund III L.P

Until the end of the Investment Period or until all the capital commitments are fully drawn down, whichever occurs earlier, the Base Fee for the relevant Partnership will be one per cent (1.0%) per annum of aggregate capital commitments plus one per cent (1.0%) per annum of the Adjusted Net Assets of the Partnership. Base fees payable thereafter will be two per cent (2.0%) per annum of Adjusted Net Assets of the Partnership.

Performance fees: >12% annual return on capital contributions, 80% to the Limited Partner and 20% to the General Partner. The GP’s performance participation is calculated on a net basis after all fees and expenses and is based on the Partnership’s entire performance and realized returns to investors, not on individual investments. Therefore, no effective catch-up or claw-back mechanism is required. This distribution waterfall is calculated with respect to each individual investor so that it can be adjusted as necessary to reflect any capital contribution differences arising from different underlying investments (in the event an investor is excused from a particular transaction) or base fee rates.

ING Clarion Debt Opportunity Fund

1.5% of committed capital during the investment period (3 years from final close – June 30, 2012). 1.5% of invested equity thereafter.

20% of all profits above a 9% preferred return, subject to a 50% catch-up.

Freo Germany II Partners SICAR

Annual Management Fee of 2.00% of Net Asset Value of Fund.

Performance Fee of 30% of performance over a 9% hurdle on the Fund.

CB Richard Ellis Strategic Partners Asia II L.P

Commencing at the closing of the Fund. Paid quarterly. 1.25% pa paid monthly of capital commitments during the commitment period, thereafter 1.25% of the aggregate equity invested by the Fund in investments which have not been disposed of (25 basis points premium for commitments lesser than $50 million).

> 10% cumulative preferred return and return of 100% of capital; 80% to the limited partner and 20% to the general partner until limited partners have received cumulative distributions of at least 13% pa cumulative return. Thereafter, 50% to the limited partners and 50% to the general partner until distributions made to the general partner equal 20% of the total amount distributed to the limited partners. Thereafter, 80% to the limited partners and 20% to the general partner.

35

GREFF GLOBAL REAL ESTATE FUND OF FUNDS PLC Directory Directors James Deeny (Irish) Thomas Finlay (Irish) Joao Fonseca (Portuguese) Pedro Santa Clara (Portuguese) Nuno Sampaio (Portuguese) Administrator, Registrar and Transfer Agent State Street Fund Services (Ireland) Limited Guild House Guild Street International Financial Services Centre Dublin 1 Ireland Investment Manager Atrium Investimentos Avenida da República, 35, 20 1050-186 Lisbon Portugal Investment Adviser CB Richard Ellis Collective Investors Ltd 64 North Row London WIK 7DA England

Registered Office First Floor Fitzwilton House Wilton Place Dublin 2 Ireland Custodian State Street Custodial Services (Ireland) Limited Guild House Guild Street International Financial Services Centre Dublin 1 Ireland Auditor Deloitte & Touche Chartered Accountants and Registered Auditor Deloitte & Touche House Earlsfort Terrace Dublin 2 Ireland

36

GREFF GLOBAL REAL ESTATE FUND OF FUNDS PLC Directory (continued)

Legal Advisers William Fry Fitzwilton House Wilton Place Dublin 2 Ireland Company Secretary Wilton Secretarial Limited First Floor Fitzwilton House Dublin 2 Ireland Sponsoring Broker and Irish Paying Agent NCB Stockbrokers Limited 3 Georges Dock International Financial Services Centre Dublin 1 Ireland

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