1 Sovereign Street, Leeds

In February 2002, an office building at 1 Sovereign Street in the centre of Leeds was purchased for £36.5m before acquisition costs.  It is a substanstial property of over 13,000 sq ft located in the centre of an area which is being regenerated and is rapidly emerging as part of the corporate heart of the city.  £6.3 million of equity was raised with 84% of the acquisition funded by debt.  The property is let to British Telecommunications pls for 18 yeaes, and was acquired off an initial rental yeild of 6.63%.

A number of offers to purchase the property were received by the Property Manager in late 2004 and 2005.  An offer from Hermes (on behalf of the Post Office Pension Fund) at £44.8m, plus 50% of the net saving from the stamp duty mitigation scheme, was approved by investors on 27 June 2005.  The sale was completed on 1 July 2005.

The internal rate of return to investors amounted to 12.9%*.

A final distribution of approximatley £100 per £25,000 equity participation is expected to be distributed on the final dissolution of the Fund.

This Fund is closed to further investment.

Key Facts
Launch Date	Spring 2002
Activity	Investment
Equity	£6.3m
Original Fund Size	£37.7m