Florida Distressed Real EstateSYNDICATE 2

There are 2 key factors why this differs from other global real estate opportunities

Investment will only be in completed properties, so there will be no development risk.

Investment will only be in non-vacation properties, so the underlying yield will be both existing and robust.

Investment Policy

The key investment objective is to target a 12 month capital return of 40% as a result of:

Strategic investment in bank foreclosed real estate at an average of 30% bmv.

Our established relationship with many of the U.S banks.

Investment Objective

The last 4 years has seen a collapse in global real estate markets.

There is some doubt whether many economies will ever see any increase in property values whatsoever.

What makes this opportunity different is that these are not holiday or second homes, but are prime residential homes for a thriving working population.

The underlying economic drivers are in place for both robust rental yield and strong capital appreciation.

Market Overview

“Castle are not selling the US market in general or Florida in particular, but rather

strategic investment to benefit from a short term prime investment window ’’

Why Orlando ?

27th largest metropolitan area in the U.S.

Thriving and fast growing business and commercial community.

Orlando Convention Centre is the most modern and second largest centre in the US.

New Medical City at Lake Nona will be the most advanced of its kind.

Orlando real estate market is not dependent on government backing through housing subsidies

Local government incentives have successfully turned Downtown Orlando into a major financial and banking centre.

Orlando Facts

2.1 million residents in Greater Orlando. Median average age is only 36 years old. 51 million annual tourist visitors. 100 major tourist attractions. 150 golf courses in Orlando area 12 colleges - UCF enrolling 58,000 students. Disney World employs 62,000 people. Orange County Schools employs 53,500

people. Medical City will employ 36,000 people.

Orlando Statistics

Target Investor Return – 40% Target Term – 12 months

Minimum Investment £25,000 Target Syndicate Size

£2,000,000

70% Average Saving on 2006/7 Value 30% Average Saving on Current Value

60% Maximum Loan To Value

Management Fee – 2% per annum

Performance HurdleUp To 10% IRR NilOver 10% IRR 25%

Syndicate Facts

Syndicate members will form a “Trading Partnership” within the confines of a Scottish Limited Liability Partnership, which in turn will own 100% of the Share Capital in a Florida LLC (Limited Liability Company).

To enable tax efficiency for UK taxpayers, it is proposed that the syndicate capital will consist of 1% equity and 99% non-interest bearing loan stock.

Syndicate Structure

30 years of global real estate investment experience in the United States, the United Kingdom, Europe and the Middle East.

Following the success of Syndicate 1, Castle Investments are releasing Syndicate 2.

Castle Investments differ from other investment managers in that the partners have always invested side by side with their investor base, on exactly the same terms and conditions.

Syndicate Managers

*Appendix A- Syndicate Managers CV’s

IAN RUSSELLMANAGING PARTNER

DAVE BRILEYUS OPERATIONS

ROBIN DUFFGLOBAL OPERATIONS

BELINDA ROBERTSMARKETING

Launched in October 2011, as a trial syndicate with$2,000,000 USD of "friends & family" money.

After 12 months due diligence to understand the local real estate dynamics.

After independent verification of all the underlying local economic drivers.

We estimate that Syndicate 1 will achieve a gross return in excess of 50% within its first 12 months

*Appendix B- Syndicate 1 Figures

Syndicate 1 Update

Thank you

Ian RussellManaging Partner Castle Investments

T: 0131 510 0413 | M: 07920 14 55 08E: ian@castledin.com | W: www.castledin.com A: 11A Dublin Street, Edinburgh, EH1 3PG