Prestigious headquarters for leading investment bank.

The closed-end property fund EuroSelect 11 was fully placed in March 2006. The fund is invested in the modern, newly constructed Grade A office building “20 Moorgate” in the City of London. The building was constructed in 2002. The main tenant is J.P. Morgan Cazenove Ltd. The bank uses 20 Moorgate as its prestigious headquarters; the rental agreement runs until 2027 with a special termination right in 2019.

Rent reviews which had been underway since 2006 were successfully concluded at the end of 2009. As a result, an increase of GBP 600,000 p.a. retroactively to the day of the rent review was agreed in return for waiving the restoration costs at the end of the rental period. About 40 % of the amount remaining after deduction of the increased head rent, will flow into current liquidity and about 60% will be saved. Arrears of GBP 1.8 million were paid at the end of November 2009.

Assessment of the property at 31 December 2010 confirms that the London property market has further stabilized. The value of the fund property rose to GBP 110 million at 31 December 2010 (2009: GBP 106 million) which is the approximately the value of time of purchase.

Up to and including the first half of 2008, investors received payouts in the amounts projected in the prospectus. As a result of the exchange rate trend between GBP and EUR, the payout for the 2008 financial year had to be reduced by 0.6%, for 2009 and for 2010 each by 1%. Therefore, the cumulative payout with reference to equity capital placed is only 2.6% below the projected figure over the term of the fund so far.