Purchase of Property

Braemar Group PLC
29 August 2006


                      PURCHASE OF TOFFEE WORKS, HARROGATE


Braemar Group plc, the specialist provider of tax efficient residential property
funds, exchanged contracts on 25 August for the purchase of a property in
Harrogate for £965,000, to be satisfied by cash.


Braemar has agreed to acquire a long leasehold interest in part of the ground
floor and all of the upper floors of a building known as Toffee Works, which
benefits from planning permission to create 11 residential units. Conversion
work will cost an estimated £1.2m, and the resulting value of the units is over
£2.5m. The Directors believe there is further potential within the site to
create commercial units for which Braemar intends to lodge an immediate planning
application.


The planned development is located in the heart of Harrogate town centre close
to all shopping and recreational amenities. The property is known as 'Toffee
Works', because it was formerly owned by Farrah Toffee Company, the famous
toffee company who have been producing toffee in Harrogate since 1840. The
building is also famous because it contains Hales Bar, one of the oldest pubs in
Harrogate. This heritage is reflected in the fact that the building is partly
Grade II listed and lies within a conservation area.


Harrogate is an attractive Victorian spa town with exclusive shopping parades,
bars, restaurants and tea rooms and is a popular tourist destination and a
conference venue. A recent survey by Channel 4 rated it as the third most
desirable place to live in the UK.


Marc Duschenes, Managing Director, commented: 'I am delighted we have been able
to secure this site with such strong development potential. We intend to
commence development as soon as possible with a view that this site may provide
an excellent initial property for our soon to be launched residential fund,
Coronation IV Limited Partnership, making productive use of our balance sheet
from the dual aspect of property trading and fund management.'

For further information please contact:


                                               Tel: [phone]
                                               Tel: [phone]
                                               Tel: [phone]
                                               Tel : [phone]



Marc Duschenes - Managing Director
Julie Serrage - Investor Relations
Alex Clarkson - Zeus Capital Limited

Charles Ryland - Buchanan Communications



Note to editors


Braemar launched its first unregulated collective investment scheme in April
2003. The Coronation Limited Partnership was set up to invest in residential
property carrying capital allowances affording its investors a blend of exposure
to the residential sector and tax relief. A second fund, The Coronation II
Partnership closed for new investment in December 2004 and a third fund, The
Coronation III Limited Partnership, was launched in September 2005. A fourth
fund, The Coronation IV Partnership, is expected to be launched in September of
this year.


Braemar's income streams can be broadly divided into four categories:



1.  Fund Management.  Braemar receives an annual management fee plus a carried 
    interest or performance fee, which may be linked to an index.

2.  Property Management.  Once a fund is put in place, Braemar either manages 
    it in-house or sources all property management functions, including 
    overseeing development and project management, arranging finance and
    insurances, tenancy management and rent collection.  Whilst project driven 
    fees typically generate a high margin up front, the longer term management 
    activity provides Braemar with a trail of recurring fee income.

3.  Property Trading and Development.  Braemar also trades reversionary 
    residential property, acting as agent or principal and from time to
    time is involved in property development on its own account.

4.  Corporate Finance.  This division intends to act as sponsor to our own 
    in-house funds, and will in later months offer corporate services,
    fund design and fund promotion to external ventures.



Following pension deregulation in April 2006 (A-Day), Braemar intends to create
a range of collective property funds that are suitable for investment by
individuals via their personal pension funds.




                      This information is provided by RNS
            The company news service from the London Stock Exchange