ANNUAL REPORT 2004 > 2005 Real Estate Investment Fund

CONTENTS

> Organs and management of Solvalor fund management S.A. 3

> In brief 4

> Annual Report for the Financial Year 2004/2005 7

> Statement of income and distribution of net income available 13

> Statement of condition 14

> Development of condition 15

> Distribution of net income available per 31th October 2005and domiciles of payment agents 16

> Real estate purchases and sales of assets 18

> Financial investments 19

> Completed rental premises directly owned by the Fund at 30th June 2005 20

> Planned properties to be owned by the Fund at 30th June 2005 23

> Brief auditors’ report 24

> 03

> Management

Solvalor fund management S.A .Avenue Mon-Repos 14, Lausanne(share capital CHF 2,500,000 fully paid up)

> Custodian bank

UBS AG, Zurich and Basel

> Statutory auditors

PricewaterhouseCoopers S.A.Av. C.-F. Ramuz 45, Pully

> Board of Directors

Pierre Milliet, PullyPresident

Alain Brussard, Saint-Sulpice, VDExecutive

François Chaillot, VandœuvresExecutive

Roland Kienast, LutryExecutive

Lorenzo Piaget, VeveyExecutive

Paul Rambert, LausanneExecutive

Yvan de Rham, Saint-Sulpice, VDExecutive

> Management

Philippe TruanDirector

Claude CalameVice Director

Nadia Berthoud-dit-GallonAuthorised representative

André RohnerAuthorised representative

> Regular appraisers

Denise Dupraz-Rousselet, architect,Epalinges

Dieter Hüni, architect,Préverenges

SOLVALOR FUND MANAGEMENT S.A.

IN BRIEF

2002/2003 1’645’477 268’756’970.85 163.33 6.50 0.00 6.503

2003/2004 2’193’232 358’533’699.79 163.47 6.40 0.00 6.403

2004/2005 2’631’467 436’639’616.03 165.93 5.80 0.50 6.303

30th June 2004 30th June 2005 Difference

Net Fund assets 358’533’699.79 436’639’616.03 21.78%

Net asset value per share 163.47 165.93 1.50%

Annual distribution 6.40 6.30 (1.56%)

Stock exchange price 207.00 217.80 5.22%

Yield as a percentage of price 3.09% 2.89% (6.39%)

Number of dwellings 2’143 2’147 0.19%

Number of properties 93 93 0.00%

Market value of the properties 488’232’600.00 504’716’300.00 3.38%

Shares in Net Fund Net asset value Distributioncirculation assets per share OI1 GC2 Total

CHF CHF CHF CHF CHF

1. OI = ordinary income2. GC = capital gain3. net, without direct taxes

and exempt from withholding taxSWX Swiss Exchange number: 278,545

> 04

Key figures at

Past performance and the composition of the portfolio are no guarantee of

the development and composition of the Fund in the future.

Indices (calculated as per SFA directive) 30th June 2004 30th June 2005

Rental loss ratio 1.08% 0.91%

Debt ratio 26.22% 13.67%

EBIT margin 64.21% 62.98%

Total expense ratio (TER) 0.85% 0.86%

Return on equity (ROE) 4.04% 5.33%

Distribution yield 3.14% 2.94%

Payout ratio 97.92% 103.28%

Agio/disagio 26.63% 31.26%

Performance 7.49% 8.64%

Return on investment 4.07% 5.36%

358.5

488.2

03/04

4.50%

5.00%

436.6

214.4

504.7

377.5

268.8

418.2

6.40 6.30

6.50

0.84%

0.76%

0.81 %

4.00%

3.50%

3.00%

2.50%

2.00%

1.50%

1.00%

0.50%

0.00%

01/02

Vacancies rates

Development of vacancy rate

02/03 04/05

6.00

7.00

5.00

4.00

3.00

2.00

1.00

0.00

01/02

Coupons*without withholding tax

Development of coupon distribute

02/03* 04/05*

450

500

600

400

350

300

250

200

150

100

50

0

01/02

Market value of properties

Net Fund assets

Comparative development

02/03 04/05

0.84%

03/04

6.40

03/04*

> 07

Management Report

> During the financial year ending 30th June 2005, Swiss investment funds continued to show aremarkable performance, generating a considerable differential between surrender values and stockmarket prices, in excess of 30% at times. During the financial year under review, Solvalor 61 hasshown an excellent performance in this respect. In fact, taking both the yield and the stock pricegain, shareholders have achieved a result of 8.64% as compared with 7.49% for the previous year.

> The management of Solvalor 61 has continued to implement the strategy adopted during previousfinancial years of reducing the Fund’s debt, through the new share issue from 30th September to 11 October 2004, which proved highly successful. The Fund’s debt fell from 26.05% to 13.44%.

> This strategy, which can be considered as “anticyclic” in the Swiss property market, guarantees theshareholder an income which is separate from any increase in the interest rates.

> During the financial year under review, the Fund acquired a plot of land of 25,057 m2 at Mont-sur-Lausanne for CHF 2,910,931 which can be used to construct approximately 80 residences for aninvestment sum of around CHF 30,000,000, and sold a property in Ecublens, located at chemin de laCocarde 21, for a sum of CHF 3,050,000.

> Almost 870,288 shares were exchanged on the SWX Swiss Exchange, representing 34% of the number of shares outstanding at the close of the financial year. This represents a turnover of someCHF 182,000,000 at an average price of CHF 210. Solvalor 61 shares are deemed to have excellent liquidity

ANNUAL REPORT FOR THE FINANCIAL YEAR 2004/2005

Development in Real Estate Holdings

> The value of completed rental properties owned by the Fund, representing 2,147homes and 15,055 m2 offices, rose by CHF 20,111,200 to stand at a total of CHF 501,805,400 on 30th June 2005. CHF 7,368,900 of this growth derives from theincrease in value in the real estate and CHF 8,100,800 from added-value work com-pleted on Fund properties.

> The market value of the entire real estate holding was revalued at 30th June 2005 byour Fund experts. There was no change in the evaluation method adopted comparedwith that used on 30th June 2004, where yield value is a major factor. This is in linewith the current market trend and is calculated by taking twice the yield value andonce the intrinsic value and dividing by three. In the case of properties where the yieldvalue is inferior to the intrinsic value, only the yield value is taken. For the propertylocated at chemin du Platane 6 in Prilly, which was completed on 1st October 2004,the buying price has been taken as the market value.

> The ratio between the rental status and the market value of the entire real estateholding amounts to an average of 7.28%, slightly down on the previous year and inline with the development of market values for real estate.

> The acquisition on 29th June 2005, of 25,057 m2 of land ready for building in thecommune of Mont-sur-Lausanne, has been entered into the books at CHF 2,910,931.

> The market value as per 30th June 2005 and also other information on each propertyowned by the Fund is set out in detail on pages 20 to 24 of the Annual Report

Statement of Income

> The income of the 44th financial year of the Solvalor 61 Real Estate Investment Fund, closing on30th June 2005, shows a new progression in income of CHF 2,847,126.43, of which CHF 803,947.78derives from subscribers’ contribution to income and CHF 1,417,625.62 from the net profit obtainedfrom the sale of a property. Leaving out these factors, income has risen by CHF 625,553.03.

> Expressed in terms of an individual share, however, income has fallen by CHF 0.30, due essentially tothe reduced mortgage leverage effect.

> The result achieved allows for an overall annual distribution of CHF 6.30, comprising CHF 5.80 as anordinary coupon and CHF 0.50 as a capital gain achieved through the sale of the property at Cocarde21 in Ecublens, which is exempt from tax for bearers domiciled in Switzerland. The coupon is addi-tionally not subject to withholding tax.

> During the 2004/2005 financial year, rental losses due to vacant properties were at a record lowvalue, having fallen by 0.05% to account for only 0.76% of rent. The combined effect of major renovation work undertaken in buildings and the shortage of housing on the shores of Lake Genevahas made it possible to maintain low vacancy rates. No tenant has reached the limit of 5% of theFund’s overall rental income.

> The stock exchange closing price for Solvalor 61 shares fluctuated between extremes of CHF 195.20at 8 October 2004 and CHF 221.90 at 17 May 2005. On 30th June 2005, the share was traded on thestock exchange at CHF 217.80.

Profit and Loss Account for the Fund

> For the 2004/2005 financial year, the total gross income of Solvalor 61, realised after deduction ofthe subscribers’ contribution to income, amounts to CHF 36,203,417 against CHF 34,420,881 in theprevious financial year. Rentals account for CHF 35,865,464, or 99.07% of this amount. This impliesan increase of CHF 2,430,897 by comparison to the previous financial year.

> Interest payable registers a renewed decrease of CHF 1,391,927 commensurate with the reduction ofthe mortgage debt. The average rate of interest is 3.2%.

> Maintenance costs for the properties amount to CHF 3,997,493 absorbing 11.2% of rentals. Generalexpenses covering, in particular, expenditure for electricity,caretaking, insurance, property tax and complementary realestate tax account for CHF 4,928,648. These absorb 13.7% ofrentals against 12.5% for the previous financial year.

> Direct taxes paid by the Fund amount to CHF 5,873,499, anincrease of CHF 766,380, representing 16.4% of the rentals andcomprising total taxes on income and assets that the bearer nolonger has to pay. This tax progression principally derives fromthe rise in the Fund’s assets due to the issue of new shares inOctober 2004.

> The Fund devotes a large part of the available income to themaintenance of its properties and to added-value work toimprove the status of its properties. The management has thusdecided to modify its property amortisation policy.Amortisation was previously charged on a linear basis over thewhole of the portfolio. As of now, no amortisation will beincluded for properties which have had a considerable amountof work performed on them during the financial year underreview, nor for properties whose market value is greater thantheir buying price. This results in a reduced sum allocated toamortisation.

4.50%

5.00%

4

6.40 6.30

6.50

0.84%

0.76%

0.81 %

4.00%

3.50%

3.00%

2.50%

2.00%

1.50%

1.00%

0.50%

0.00%

01/02

Vacancies rates

Development of vacancy rate

02/03 04/05

6.00

7.00

5.00

4.00

3.00

2.00

1.00

0.00

01/02

Coupons*without withholding tax

Development of coupon distribute

02/03* 04/05*

4

0.84%

03/04

6.40

03/04*

> 09

Pierre Milliet Philippe Truan

President Director

> 10

Capital Gain Achieved

> On 18th March 2005, the Fund sold the property at Cocarde 21 in Ecublens, which comprises one-room apartments which no longer fit in with the Fund’s investment policyof achieving tenant stability in a residence. This transaction realised a net profit of CHF1,417,625.62. A separate coupon for CHF 0.50 is being distributed to shareholders.

Management Committee

> In accordance with Article 15, letter a, figure 1 of the Fund Regulations, the manage-ment has drawn an annual remuneration of 0.25%, based on the total gross assets at30th June 2004. The annual remuneration of the depositary bank is 0.1% of the total netassets at 30th June 2004.

Changes in the Number of Shares Outstanding

> In October 2004, Solvalor 61 issued 438,235 new shares, representing 99.9% of the totalshares released on the market. The number of shares outstanding at the end of the finan-cial year is thus 2,631,467, as opposed to 2,193,232 for the previous financial year. Noshares were redeemed in the financial year under review. Neither has any repurchase ofshares advice been issued as per 30th June 2005.

Prospects

> The Fund management is realising a new share issue from 31st October to 10th November2005 for a sum of around CHF 55,000,000.

> The current situation on the property market is very tense, with little on offer and pricesat a high level. The Solvalor 61 Fund intends to further reduce its mortgage debt througha share issue and thus put itself in a position to take up acquisition opportunities whichwill emerge if the market turns around again.

> The Fund’s portfolio development policy, which is aimed at building new properties whichmatch market expectations, will permit the investment fund to build properties on theshores of Lake Geneva for a sum of approximately CHF 100,000,000. These apartmentswill be brought onto the rental market between 2007 and 2010 depending on when thestatutory authorisations are obtained.

> For the current financial year, the Fund management has set itself the aim of ensuring areal-estate yield for shareholders over the long term, sheltering them from rises in interestrates. The management intends to continue developing the Fund through acquisitionsand the construction of new properties.

358.5

488.2

03/04

4.50%

5.00%

436.6

214.4

504.7

377.5

268.8

418.2

6.40 6.30

6.50

0.84%

0.76%

0.81 %

4.00%

3.50%

3.00%

2.50%

2.00%

1.50%

1.00%

0.50%

0.00%

01/02

Vacancies rates

Development of vacancy rate

02/03 04/05

6.00

7.00

5.00

4.00

3.00

2.00

1.00

0.00

01/02

Coupons*without withholding tax

Development of coupon distribute

02/03* 04/05*

450

500

600

400

350

300

250

200

150

100

50

0

01/02

Market value of properties

Net Fund assets

Comparative development

02/03 04/05

0.84%

03/04

6.40

03/04*

> 13

IncomeRentals 33’434’567.09 35’865’464.35 100.00%Intercalary interest 80’599.15 43’712.50 0.12%Interest on fixed-term investments of up to 9 months 0.00 0.00 0.00%Postal cheque account and bank income 16’368.45 8’459.05 0.02%Other income 889’346.24 123’932.11 0.35%Subscriber participation to accrued income 1’120’491.71 803’947.78 2.24%Dissolution of property amortisation fund 0.00 161’849.00 0.45%

Total income 35’541’372.64 37’007’364.79 103.18%

ExpenditureInterest payable 4’276’365.80 2’884’439.15 8.04%Maintenance and repairs 3’739’084.60 3’997’492.95 11.15%Property management:a) General property expenses (water, electricity,

caretaking, cleaning, insurance, land tax, etc.) 4’192’105.98 4’928’648.46 13.74%b) Administration costs (fees and administration expenses) 2’276’856.30 2’425’444.90 6.76%Direct taxes 5’107’119.50 5’873’499.52 16.38%Valuation and auditing costs 139’206.60 126’107.25 0.35%Publications, printing and other costs 72’840.45 79’785.05 0.22%Regulation remuneration to Management 1’045’532.00 1’220’580.00 3.40%Regulation remuneration to the custodian bank 357’624.14 452’929.43 1.26%Allocation(s) to provisions for doubtful debts 0.00 69’000.00 0.19%Amortisation of properties 1’130’000.00 315’300.00 0.88%

Total expenditure 22’336’735.37 22’373’226.71 62.38%

Determination of incomeNet income 13’204’637.27 14’634’138.08 40.80%Profits and losses on realised capital 0.00 1’417’625.62Subscriber participation in profit and loss of realised capital 0.00 0.00Income realised 13’204’637.27 16’051’763.70Profits and losses on non-realised capital 1’295’138.88 7’215’420.12

Total income for the financial year 14’499’776.15 23’267’183.82

Distribution of the resultNet income for the financial year 13’204’637.27 16’051’763.70Ordinary income brought forward from previous financial years 1’022’898.34 531’358.57Subscriber participation to ordinary income from previous financial years 340’507.76 106’172.04Capital gain brought forward from previous financial years 30’640.52 40’840.30Subscriber participation in capital gain from previous financial years 10’199.78 4’386.92

Income available for distribution 14’608’883.67 16’734’521.53

Income earmarked for distribution to share holdersCoupons Nos. 60 and 62 (ordinary income) 14’036’684.80 15’262’508.60Coupon No. 63 (capital gain) 0.00 1’315’733.50

Carried forward to new accountCarried forward to new account 572’198.87 156’279.43Including: ordinary income carried forward 531’358.57 9’160.09

capital gain carried forward 40’840.30 147’119.34

STATEMENT OF INCOME AND UTILISATIONOF NET INCOME AVAILABLE

2003 / 2004 2004 / 2005 in % ofrentals

CHF CHF

> 14

Assets

Bank assetsSight 737’289.81 0.15 6’522’460.47 1.27Time 0.00 0.00 0.00 0.00

PropertiesLand 0.00 2’910’900.00Constructions in progress (including land) 6’538’400.00 1.33 0.00 0.00Completed rental premises (including land) 481’694’200.00 98.00 501’805’400.00 97.69Other assets 2’542’928.83 0.52 2’458’533.98 0.48

Total assets 491’512’818.64 100.00 513’697’294.45 100.00

Liabilities

CommitmentsMortgage debts 128’000’000.00 26.05 69’000’000.00 13.44Other commitments 4’979’118.85 1.01 8’057’678.42 1.57

Total liabilities 132’979’118.85 27.06 77’057’678.42 15.00

Gross assets 358’533’699.79 72.94 436’639’616.03 85.00Estimated liquidation taxes 0.00 0.00 0.00 0.00

Net assets 358’533’699.79 72.94 436’639’616.03 85.00

Number of shares outstanding 2’193’232 2’631’467

Net asset value per share 163.47 165.93

Balance sheet informationTotal in property amortisation account 10’513’121.66 10’666’572.66

STATEMENT OF CONDITION

30th June 2004 30th June 2005Market value Market value

CHF % CHF %

> 15

Net assets at the beginning of the financial year 268’756’970.85 358’533’699.79

Distribution of couponsCoupon No. 58 (ordinary income) (10’695’600.50)Coupon No. 60 (ordinary income) (14’036’684.80)Balance of changes in shareholding 85’972’553.29 68’875’417.22

Résultat total de l’exercice 14’499’776.15 23’267’183.82

Net assets at the close of the financial year 358’533’699.79 436’639’616.03

Changes in the number of shares outstandingShares outstanding at the beginning of the financial year 1’645’477 2’193’232Shares redeemed during the financial year 0 0Shares issued during the financial year 547’755 438’235Shares outstanding at the close of the financial year 2’193’232 2’631’467

Number of shares advised for repurchase atthe close of the following financial year zero zero

2003/ 2004 2004 / 2005

Assets CHF CHF

DEVELOPMENT OF CONDITION

Distribution per total per share total

CHF CHF

Payment to bearers on presentationat 31th October 2005:

- on coupon No. 62

Ordinary income for the current financial year 5.80 15’262’508.60

- on coupon N° 63

Capital gain for the current financial year 0.50 1’315’733.50

In favour of bearer (gross value) 6.30 16’578’242.10

We recall that the present coupon is not subject to withholding tax and is exempt from direct taxes in Switzerland.

Domiciles of payment agents

> UBS AG and its branches in Zurich, Basel

> BANQUE CANTONALE VAUDOISE Lausanne

> UNION SUISSE DES BANQUES RAIFFEISEN St. Gallen

> CREDIT SUISSE Lausanne

> LOMBARD ODIER DARIER HENTSCH & CIE, BANQUIERS Lausanne

> FERRIER LULLIN & CIE SA, BANQUIERS Geneva

> PICTET & CIE, BANQUIERS Geneva

DISTRIBUTION OF NET INCOME AVAILABLE PER31TH OCTOBER 2005 AND DOMICILES OF PAYMENT AGENTS

> 16

Purchases

I. Land CHF

Purchase of a plot of land located at:

29.06.2005 Le Rionzi in Le Mont-sur-Lausanne, area 25’057 m2 2’910’931.00

II. Rental property

No transactions during the period 1 July 2004 to 30 June 2005.

Sales

I. Land

Sale of part of the plot of land taken from the property located at:

29.07.2004 Bois 8 in Ecublens, area 1’870 m2 56’100.00

II. Rental property

Sale of a property located at:

18.03.2005 Cocarde 21 in Ecublens 3’050’000.00

List of real estate transactions during the 2004/2005 financial year between two investment fundsunder same or affiliated management.

No transactions in the period from 1st July 2004 to 30th June 2005.

REAL ESTATE PURCHASES AND SALES OF ASSETS

> 18

50’000’000.00 3.17

19’000’000.00 3.35

69’000’000.00 average rate 3.22

> 19

FINANCIAL INVESTMENTS

Commitments at 30th June 2005

Amounts borrowed Rate

CHF %

List of real estate companies held by the Fund at 30th June 2005

Lonistra S.A. in liquidation

(There real estate companie no longer own property;deletion from the commercial register is in progress).

Duration of investment Amount Rate Gross Yield

CHF % CHF

None

COMPLETED RENTAL PREMISES DIRECTLY OWNED BY THE FUND AT

Aloys-Fauquez 8728

509 m2

609’422615’960

8’733’9677’507’1627’783’200

7.91%

Béthusy 2614

262’980262’980

3’168’8904’778’1213’942’000

6.67%

Chailly 1524

270’261275’988

3’835’7403’133’2003’388’600

8.14%

Chandieu 2232

143 m2

354’580359’460

4’442’8175’891’7394’422’500

8.13%

Cour 21-2330

398’193403’344

5’035’5195’169’9965’112’100

7.89%

Dapples 34 A to G3

679 m2

196’086196’980

2’375’5742’420’4062’710’400

7.27%

Fantaisie 615

48 m2

167’714178’514

2’270’0933’805’8602’201’800

8.11%

Floréal 113

207’645212’940

3’729’6342’981’4742’993’100

7.11%

F

Gare 4227

7 m2

318’330318’840

2’074’0015’074’3834’945’900

6.45%

Galliard 211

150 m2

223’980223’980

1’639’2162’894’8403’191’200

7.02%

Grancy 20 18

663 m2

593’364601’920

6’063’2719’084’4608’567’100

7.03%

Grancy 47/4917

975 m2

659’236648’216

10’635’6139’121’0059’450’000

6.86%

Sainte-Luce 615

187’628189’180

1’320’3732’753’8502’945’500

6.42%

L

Rambert 149

18 m2

129’900129’900

1’186’8972’034’1921’917’500

6.77%

Rambert 187

105’480105’480

1’946’3911’533’2181’573’500

6.70%

Reposoir 1013

44 m2

176’443177’108

3’050’3222’686’5852’941’300

6.02%

Reposoir 14 B13

128’930130’920

2’460’8602’345’7992’141’000

6.11%

Ruchonnet 7/919

445 m2

438’535442’428

7’048’9558’299’9196’586’300

6.72%

Victor-Ruffy 1223

8 m2

270’740279’600

3’896’5033’915’6083’812’700

7.33%

Victor-Ruffy 1426

6 m2

283’013291’960

4’079’2394’245’5863’856’300

7.57%

Victor-Ruffy 758

115’080115’080

2’071’2491’876’9712’012’800

5.72%

Jurigoz 414

167’612168’352

3’214’3093’518’4792’793’800

6.03%

Juste-Olivier 1914

210’929215’700

4’000’6294’593’1503’487’400

6.19%

Sainte-Luce 820

260’920265’560

1’530’0943’583’5283’312’600

8.02%

Commercialpremises

Apart. Rental status01.07.2005

CHF

Gross incometakenCHF

= = = =

Lausanne

BY THE FUND AT 30TH JUNE 2005

Floréal 12/Voltaire 738

585’053588’780

9’422’7178’779’3678’837’100

6.66%

Floréal 1413

10 m2

249’300249’300

3’681’6193’914’8313’729’200

6.69%

Fraisse 1211

631 m2

346’280362’820

5’296’4535’747’8165’511’200

6.58%

France 809

110 m2

141’960141’960

2’455’7482’247’6152’335’800

6.08%

France 8711

236’840244’500

4’173’7143’144’5363’711’200

6.59%

Gare 3616

110 m2

227’308239’040

1’587’2693’568’6343’107’500

7.69%

Gare 3815

86 m2

187’343188’220

1’146’3193’040’4692’447’100

7.69%

Gare 4031

353’776357’660

2’564’9085’830’5765’248’400

6.81%

Lucinge 221

383’905385’860

3’670’2975’409’7794’866’700

7.93%

Marc Dufour 15

260 m2

189’100189’480

2’938’8702’104’9333’082’900

6.15%

Mon-Loisir 59

92’70092’700

877’7451’643’4251’367’600

6.78%

Ouchy 64 + land39

187 m2

578’347578’520

8’002’0836’640’0718’185’000

7.07%

Platanes 1/316

177’115179’340

3’504’2942’681’7372’752’200

6.52%

Platanes 5/711

6 m2

160’848175’128

2’974’2862’517’6552’883’300

6.07%

Platanes 9/1114

166’814175’644

2’760’0502’235’1172’911’400

6.03%

Platanes 13/1512

151’646155’040

2’860’1132’432’5562’506’400

6.19%

Blancherie 566

792’038799’248

7’538’9459’369’1279’737’100

8.21%

Blancherie 14/2475

709 m2

1’240’3081’253’856

12’953’82214’753’50715’567’900

8.05%

Préfaully 25 B/C45

758’190771’480

13’037’74110’261’2829’658’000

7.99%

Bois 827

287 m2

342’606350’280

4’720’6234’182’8074’721’300

7.42%

Toises 330

355’870365’460

3’179’8905’035’4504’992’200

7.32%

Gare 15/15A/15B27

1’920 m2

966’096970’944

11’159’78211’199’30213’712’200

7.08%

Chavannes Ecublens Lutry Morges

PrimecostCHF

InsurancevalueCHF

MarketvalueCHF

RatioRS/MP

%

= = = =

Dr Yersin 510

200’968201’120

3’300’1472’157’2053’022’800

6.65%

Dr Yersin 710

190’245190’860

2’815’3241’864’7702’980’000

6.40%

Dr Yersin 98

535 m2

298’350299’040

5’227’2332’961’0074’914’000

6.09%

Platane 517

192’996193’176

2’889’3572’845’5162’505’100

7.71%

Fau-Blanc 3/513

281’909292’140

4’655’8734’140’3914’727’300

6.18%

L

Seftigenstrasse 50 to 5864

748’287886’400

11’745’56113’586’00013’057’400

6.79%

Asters 2041

331 m2

392’243393’768

4’656’9264’891’3005’026’700

7.83%

Athénée 2331

369’692375’936

3’602’8944’389’0004’903’000

7.67%

Aubépine 1213

35 m2

169’494169’494

2’549’3142’341’7002’465’500

6.87%

Chandieu 721

166 m2

407’229435’240

5’469’2325’469’7005’629’500

7.73%

Malagnou 413

242 m2

334’008339’144

3’801’9174’549’6004’950’100

6.85%

Malagnou 813

170 m2

351’016353’028

3’763’0494’671’8005’196’800

6.79%

Micheli-du-Crest 111

191 m2

288’588291’912

2’734’6713’552’3004’286’900

6.81%

Miremont 4215

529’333522’504

6’572’2297’225’0007’129’600

7.33%

Orangerie 618

215’106217’176

2’675’9042’718’2002’711’300

8.01%

Peschier 2228

687’995695’457

7’498’7767’990’5007’989’100

8.71%

Voisins 518

150 m2

471’499473’238

6’387’4096’959’1007’278’400

6.50%

Bride 418

293 m2

341’200344’556

4’429’0234’384’9004’784’700

7.20%

P

PrillyCoudraie 7/9/11

28

356’746359’940

5’471’5315’766’6684’859’000

7.41%

PullySt-Cergue 4B

20110 m2

243’244248’316

3’406’3834’011’7593’243’100

7.66%

Pré-Fleury 13/15/1723

62 m2

243’664262’464

3’909’5585’128’8673’670’400

7.15%

Nyon

Yverdon Berne Gland Geneva

GChêne-Bougeries

Ruttet 1 and 2 to 1284

302 m2

1’468’5691’493’100

20’276’35318’109’13421’867’300

6.83%

Fontenay 1121

248’518250’481

3’853’1994’395’5803’202’700

7.82%

Asters 1838

532 m2

410’678411’485

5’177’2855’591’7005’660’700

7.27%

Dr Yersin 1118

316’951317’760

4’868’5492’664’4534’821’000

6.59%

Platane 624

374’895517’620

7’914’7455’803’2607’914’700

6.54%

COMPLETED RENTAL PREMISES DIRECTLY OWNED BY THE FUND AT

Commercialpremises

Apart. Rental status01.07.2005

CHF

Gross incometakenCHF

= = = =

Liaudoz 4628

296’181307’296

4’351’4783’913’2974’136’400

7.43%

Palettes 1321

10 m2

537’279544’326

5’957’8796’048’5006’370’000

8.55%

Bac 10-14 + Petit Lancy

832’779 m2

1’565’4631’620’767

20’533’95020’424’70021’760’600

7.45%

Petit-Lancy 30-31bis24

385’020413’040

6’855’8206’877’7005’142’700

8.03%

Vaudagne 3821

4 m2

398’765407’628

4’918’8964’836’9004’996’400

8.16%

Sauverny 23 to 3130

391’402405’708

6’053’7734’363’2004’999’500

8.11%

Chandieu 914

112 m2

403’121395’916

5’041’3304’597’9005’154’000

7.68%

Charles-Page 1127

308’648310’698

3’251’6203’233’2003’556’900

8.74%

Charles-Page 1729

80m2

317’444319’272

3’476’8743’385’3003’692’900

8.65%

Chevillarde 16/16A/16B33

856’087866’721

12’803’59712’103’70012’338’900

7.02%

Encyclopédie 742

742’911747’456

9’037’1199’643’200

10’731’1006.97%

Fins 1312

308’942332’568

4’839’7774’904’8004’703’200

7.07%

Gilbert-Trolliet 10/1222

18 m2

667’305677’571

10’567’2799’631’9009’428’200

7.19%

Maladière 936

400’708404’504

4’559’8484’821’5004’710’100

8.59%

Somais 18/2012

213’340216’480

2’768’1962’480’8813’426’600

6.32%

Somais 22/2412

214’847219’360

2’803’7822’480’8813’477’000

6.31%

Florissant 30/3239

425 m2

702’939704’880

4’985’6509’284’4918’009’600

8.80%

Longemalle 10/12/1463

497 m2

826’908832’320

6’649’75212’139’8919’008’000

9.24%

Ochettaz 27A9

200’585206’760

2’078’5732’208’2253’125’300

6.62%

Ochettaz 29 A9

191’985195’120

3’102’0862’208’2253’080’800

6.33%

Plateires 29

230’870247’980

1’634’2963’099’4163’199’800

7.75%

Renens St-Sulpice

VersoixMeyrinPetit-LancyGrand-Lancy Total

2’14715’055 m2

35’865’46436’537’376

466’241’461490’847’340501’805’400

7.28%

Planned properties to be ownedat 30th June 2005

Building land

Le Rionzi

2’910’931

2’910’900

Le Mont-sur-Lausanne

BY THE FUND AT 30TH JUNE 2005 (CONT.)

PrimecostCHF

InsurancevalueCHF

MarketvalueCHF

RatioRS/MP

%

= = = =

> As the legally authorised statutory auditors of Solvalor 61 Real Estate Investment Fund, we haveexamined the accounting records and the annual report, set out on pages 13 to 23, for the finan-cial year closing 30th June 2005.

> Fund Management is responsible for the compilation of the annual report, whereas our office isto verify and make an appraisal of their report. We confirm that we meet the requirements of thelaw with respect to qualification and independence.

> Our audit was conducted according to recognised auditing principles in Switzerland. These stan-dards require the planning and realisation of the audit examination in such a manner that, witha reasonable degree of certainty, any significant anomalies in the annual report may be detected.We examined the positions in the annual report by making analyses and sample examinations.Further, we conducted an appraisal of the manner in which the provisions concerning thepresentation of accounts were applied and the significant decisions in the evaluation andpresentation of the annual report as a whole. We consider that our audit constitutes a sufficientbasis for the formation of our opinion.

In our opinion,

> the investments, statements of condition and the statement of income, the calculation of netassets as well as the utilisation of net income comply with the provisions of Swiss law, as well aswith the Fund bylaws and the prospectus;

> the information on the issue, repurchase and total number of shares outstanding and the list ofpurchases and sales is exact;

> the information on the deposit offices and the persons to whom competence with respect to themaking of investments and other duties were delegated, as also the information on business ofparticular economic or legal importance, figures in the annual report according to the legalprovisions;

> the estimated market value of the Fund assets and the deduction for taxes payable in the event ofliquidation of the Fund appear to be in conformity with the law and accepted accounting practice;

> the valuation methods, capitalisation rates applied, prime cost prices, estimated insurance andmarket values of each of the properties are shown correctly.

Lausanne, 10th October 2005

C. Soguel M. Plaindoux

BRIEF AUDITORS’ REPORT

> 24