Developments - Tring & Hayes

Off-Plan Fund Limited (The)
05 March 2007


For Immediate Release                                               5 March 2007



                           The Off-plan Fund Limited


       Contracts signed in respect of new developments at Tring and Hayes


The Board of The Off-plan Fund Limited (the 'Fund'), which specialises in
providing forward finance to UK housebuilders, is pleased to announce the
exchange of contracts for the purchase of 38 apartments to be built at a
proposed development in Tring, Hertfordshire and 31 apartments to be built in
Hayes, Middlesex.


Tring, Hertfordshire


   •The development consists of 38 new-build two bedroom apartments with
    parking and a total of 26,860 square feet.


   •Construction of the development is expected to commence within the next
    3-6 months subject to the establishment of a s106 agreement. The apartments
    are due for completion in mid 2008. As part of the agreement the Fund may
    rescind on those units selected as part of a s106 affordable housing
    requirement.


   •The site adjoining Brook Street is well located; within half a mile of
    Tring town centre, approximately 15 miles north of Watford and 40 minutes
    commute by train from London Euston station.


   •The Fund has agreed to pay £218 per square foot (a total of £5.86m) on
    completion, a discount of 27.1% to the Red Book valuation provided by
    independent valuers, Douglas Duff of £299 per square foot (£8.03m).


   •The Fund will pay a 5% deposit (£292,774) once all permissions are
    complete. This will then be held in escrow pending completion.


   •Should the Fund achieve the Red Book valuation for this site, taking into
    account the likely s106 requirement, it would generate a profit of £558,000,
    a 6p uplift on the Red Book NAV.



   •The Fund's unique financing model has enabled it to secure a very
    competitive purchase price in a beneficial partnership with the developer.



Hayes, Middlesex


   •The Fund has also agreed to purchase 31 new-build studio, one, two and
    three bedroom apartments with parking, comprising 18,063 square feet, from
    the same developer at a proposed development at Yeading Lane, Hayes in
    Middlesex.



   •The agreement is conditional upon the Developer obtaining planning
    permission and securing the remaining portion of the site.


   •Construction of the development is expected to commence later in the year
    once the above conditions are satisfied.


   •The site has excellent commuting links; being close to the M4, M40 and
    Heathrow Airport together with good rail and underground links to central
    London. In addition a number of blue chip employers are located in the area.


   •The Fund has agreed to pay £253 per square foot (a total of £4.57m) on
    completion, a discount of 31.6% to the Red Book valuation of £393 per square
    foot (£7.1m) also provided by Douglas Duff.


   •The Fund has agreed a 5% deposit (£228,495) which will paid once all
    permissions are complete. This will then be held in escrow pending
    completion.


   •Should the Fund achieve the Red Book valuation for this site it would
    generate a profit of £653,317, which would equate to a 7p uplift on the Red
    Book NAV.


   •Again the Fund's unique financing model has enabled it to secure a very
    competitive purchase price in a beneficial partnership with the developer.



Assuming that the above investments were included in the current Red Book based
valuation, this would lift the NAV to 100.4p per share.



The Chairman of the Fund, Graham Berry, said:


'These are very attractive deals for the Fund. A strong relationship with an
established and respected local builder, together with our beneficial financing
model, have enabled the Fund to secure highly competitive prices in a strong
area of the market.'



List of Contacts

Development Capital Management

Roger Hornett

Andy Gardiner

020 7355 7600


Numis Securities

Adam Shapton

Charles Farquhar

020 7776 1500


Buchanan Communications

Charles Ryland

Isabel Podda

020 7466 5000



Notes to Editors:


   •The Fund is managed by Development Capital Management (Jersey) Limited


   •Successfully floated on AIM on 12 December 2005 the Fund raised a further
    £6.8m increasing the total assets to £8.6m.


   •The Fund provides a form of mezzanine finance through the acquisition of
    UK residential property, sold forward by developers as a means of securing
    better debt finance. The Fund then looks to sell the properties prior to
    completion. By utilising only the deposit and purchasing at a discount, the
    investment becomes highly geared, as do the potential returns.


   •Working with a number of developers, the Manager has been reviewing sites
    at the earliest stages of development. This approach allows the Fund to act
    as a strategic partner, building a relationship with the developer
    throughout the construction and marketing process and also enabling the Fund
    to make investments on terms that may otherwise not have been achieved.





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