The Fareham Fund

The Fund was launched in Spring 2002 and raised equity of £1.4 million to participate in a planned network of innovation centres.  The innovation centre is managed as a joint venture (START Operations Limited) between St John's Innovation Centre Limited and an experienced commercial property developer.  A two storey building has been constructed to provide serviced office space let on flexible terms near to the entrance of the Segensworth East Business Park in Fareham.  The objective of the Fareham Fund is to achieve both a higher yield than that normally available to commercial property operations and also to benefit from the anticipated capital growth in the value of the centre.

A 15 year lease to the Operator, START (Fareham) Limited ("START") is in place under which rent currently of at least £16,873 per month is payable, increasing by 4% per year.  Once the occupancy level reaches 85%, the rent converts to the higher of either (1) a percentage of the turnover of the centre and (2) the minimum rental level.

We are continuing to closely monitor progress on new lettings and occupancy.

The Fund Manager is considering the appropriate time to dispose of the property.

In July 2008 a resolution to sell the property was approved by investors.  Close Investments Limited is proceeding with the negotiation for the sale of the property on behalf of the Fund.  However there is a complex due diligence process still to be completed and therefore a sale is not guaranteed.

Key Facts
Launch Date	Spring 2002
Activity	Investment / Asset Enhancement
Equity	£1.4m
Original Fund Size	£3.2m
This Fund is closed to further investment