The Eaton Active

Special Opportunity

Property Fund

Market UpdateMay 2009

“Market Turning”

• The Current Market Opportunity• The Eaton Fund - Adding Value

Contents

The Current Market Opportunity

An Abrupt Correction

2009

Real initial yields at historic highs Inflation adjusted initial yields

Property Yields v Cost of DebtHighest Since 1991

Market Sentiment Changing

Prime Yields Hardening

The Buying Opportunity

| 2009 |

The Current Market – DealsExamples of current high yield investment grade propositions

Significant Players Back In The Market

• Mould & Vaughan (London and Stamford)• Nick Leslau (Prestbury)• John Caudwell (Phones4U) • David Whelan (JJB, Wigan Athletic)• WW Advisors (Middle East Investors)• Stenham UK Property Fund• BP Pension Fund• Moorfield • Mars Pension Fund• AFIAA (Swiss Pension Fund)• IAK (German Pension Fund)• J P Morgan

The Current Market

• Prime Yields may have ‘topped out’• Investment Grade Yields available 7.5 – 9%• Market Bottoming Out• Asset Management and Planning Angles still overly

discounted• Bank finance - terms easing – low fixed rates• Competition for best deals increasing• Smart Money and Institutions back in the Market

The Eaton Fund

Adding Capital Value

The Eaton Fund – Adding Value

• Takes Advantage of Exceptional Market Conditions • Highly Experienced Team with Good Track Record• Adding Capital Value (not passive hold)

• Asset Management Angles• Planning Consents

• High Rental Yields• Cash Generative • Opportunistic but with Defensive Qualities

Summary

• Abrupt market correction (25-30%)

• Inflation adjusted yields now at a post war high

• Prime Rental Yields hardening

• Bank finance easing

• Smart Investors (and Institutions) back in the market

• Market turning (very best deals possibly gone?)

• Eaton – benefit of high rental yields and actively adding

capital value