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Kenmore Eur Ind Fund (TEIF)

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Tuesday 26 September, 2006

Kenmore Eur Ind Fund

Proposed Increase-borrowing

Kenmore Euro Industrial Fund Ltd
26 September 2006

Kenmore European Industrial Fund Limited (the "Company")
26 September 2006

Proposed increase in the Company's borrowing limit

The Board has today issued a circular (the "Circular") with proposals for the
amendment of the Company's Articles of Association to increase the Company's
borrowing limit. Terms used in this announcement have the same meaning as set
out in the Circular.

As described in the Prospectus, published on 8 September 2006, on or shortly
after Admission of the Shares, the Group's Portfolio consisted of the Property
Portfolio, a portfolio of properties acquired from various entities within or
managed by the Kenmore Group. Following the acquisition of the Property
Portfolio, the Group will be partially invested. As stated in the Prospectus,
the Company intends to acquire further real estate investments in accordance
with its investment policy, such that the Company expects to be fully invested
by 30 September 2007. At such time, the Company expects to have invested
approximately a further €268 million (excluding acquisition costs).

The Listing Rules require that as at Admission, the Company may have the power
only to borrow up to an amount equal to a maximum of 65 per cent. of the Gross
Assets of the Group (as defined in the Articles of Association) at the time of
drawdown. The EGM of the Company is now being convened to consider and vote upon
a resolution to amend the Articles to permit borrowings of up to 75 per cent. of
the Gross Assets. The Directors, however, intend to target borrowings to between
65 and 75 per cent of the Gross Assets, with the current intention being to
target borrowings of circa 70 per cent. of the Gross Assets.

Benefits of increasing the Borrowing Limits
The acquisition of real estate investments after Admission is expected to be
funded by cash resources and further borrowings to be made by the Company. The
Investment Manager has already identified a potential pipeline of opportunities
for the Company of approximately €85 million, which are in line with its
investment objective. Negotiations for the acquisition of the properties in the
pipeline are currently being conducted with the current owners. It is
anticipated that the increase in the Company's borrowings limit should enable
the Company to continue to invest in real estate opportunities identified by the
Investment Manager. On the basis of the Assumptions, which include an assumption
that acquisitions will be funded as to 70 per cent. by borrowings, when fully
invested the Company will have property assets at cost of approximately €584

Proposed Resolution and future implementation of the proposals
The amendment of the Articles of Association is conditional on the passing of a
special resolution contained in the Notice of the Extraordinary General Meeting
to be held at 10.00 a.m. on 18 October 2006 at Northern Trust International Fund
Administration Services (Guernsey) Limited, Trafalgar Court, Les Banques, St.
Peter Port, Guernsey.


Kenmore Property Group Limited +44 131 226 9000
Rob Brook
John Kennedy

JPMorgan Cazenove +44 20 7588 2828
Richard Cotton
Robert Fowlds

Northern Trust International Fund Administration Services (Guernsey) Limited -
Company Secretary01481 745439


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