Re-financing

ISIS Property Trust 2 Limited
11 January 2007


ISIS Property Trust 2 Limited

Re-financing of bank borrowings and reduction in cost of debt

11 January 2007


The Board of ISIS Property Trust 2 Limited (the 'Company') is pleased to
announce that it has re-financed the Company's existing bank borrowings.

On 10 January 2007 the Company repaid in full its existing debt facility of
£70.7 million with The Royal Bank of Scotland plc and entered into a new £75
million facility with Lloyds TSB Scotland plc. The term of this facility is
until January 2017. The margin under the new debt facility is 50 basis points
over LIBOR for the first three years and 45 basis points over LIBOR for the
remaining period. The other terms of the facility are substantially identical to
the terms of the previous facility with The Royal Bank of Scotland plc. The
Company has initially drawn down £60 million under the new facility.

The Company has entered into a new interest rate swap transaction with Lloyds
TSB Scotland plc under which the interest on the full amount initially drawn
down under the new facility has been fixed at an aggregate interest rate
(including margin) of 5.655% per annum for the first three years and 5.605% per
annum thereafter.

The Company has terminated the existing interest rate swap with The Royal Bank
of Scotland plc, under which the interest on the previous debt facility had been
fixed at 6.265% per annum (including the margin of 65 basis points). The cost of
terminating the swap transaction was £1,605,000. Under IFRS, the accounting
standards employed by the Company, the Company already provides for the cost of
terminating the swap and therefore the termination of the swap will have no
impact on the Company's net asset value under IFRS.

The Company has used the amount drawn down under the new facility towards
repayment of the previous debt facility. The arrangement fee and costs of the
new facility (together estimated at £430,000, including irrecoverable VAT), the
breakage costs on the previous interest rate swap and the balance of the
previous debt facility will be met from the Company's existing cash balances.

Following the drawdown of the new debt facility, the borrowings of the Company
represent approximately 25.0 per cent. of the Company's gross assets. It remains
the Directors' present intention that the Company's borrowings will not in
aggregate represent more than 45 per cent. of the Company's gross assets.

The Board believes that the re-financing offers the following benefits to the
Company.

-  The interest cost of the new debt facility is significantly lower than the 
   interest cost of the existing bank borrowings of the Company.

-  Shareholders can expect to benefit from an average annual interest cost 
   saving of £455,000 (before taking into account the costs of arranging the 
   facility and breaking the existing interest rate swap referred to above and 
   assuming the same amount is drawn down under the facility).

-  The refinancing will extend the repayment date of the Company's borrowings 
   from 2014 to 2017.

-  The structure of the new facility retains the existing flexibility for the 
   Company and its investment manager actively to manage the property portfolio 
   and to pay dividends to shareholders.

Enquiries:

Ian McBryde/Scott Macrae
F&C Asset Management plc
020 7628 8000

Douglas Armstrong
Dickson Minto W.S.
020 7628 4455

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