Alpha Group International Regulatory News (ALPH)

5 June 2015

Alpha Pyrenees Trust Limited (the "Trust" or the "Company")

Trading Update

Alpha Pyrenees Trust Limited today publishes its trading update statement for the quarter ending 31 March 2015 and the period up until the date of this announcement. The information contained herein has not been audited.

KEY POINTS

· MATURITY OF BORROWINGS EXTENDED TO 15 OCTOBER 2015

· TRUST HAS THE SUPPORT OF ITS LENDER FOR AN ORDERLY REALISATION OF ITS INVESTMENT PROPERTY

· WEIGHTED AVERAGE LEASE LENGTH IS 10.3 YEARS TO EXPIRY AND 6.6 YEARS TO NEXT BREAK

· 88% OF PORTFOLIO INCOME COMES FROM GRADE A TENANTS

· 92% OF THE TRUST'S PORTFOLIO BY VALUE IS IN FRANCE AND 84% IS IN THE PARIS REGION

· ADJUSTED NAV* 3.9 PENCE PER SHARE AS AT 31 MARCH 2015 (31 DECEMBER 2014: 6.0 PENCE PER SHARE)

VALUATION AND NET ASSET VALUE ("NAV")

The Trust's investment portfolio was last valued on 31 December 2014 at €271.2m (£198.4m at 31 March 2015 exchange rate) giving an average valuation yield across the portfolio of 8.3% (French portfolio 8.2% and Spanish portfolio 9.0% respectively).The next independent revaluation will take place as at 30 June 2015.

As at 31 March 2015 the adjusted NAV* is 3.9 pence per share. The decrease in adjusted NAV from 31 December 2014 (6.0 pence per share) is due to the combined effect of the loss incurred in the period and adverse foreign exchange effects.

*Adjusted NAV - unaudited, after adjustments for the interest rate swap derivatives (only relevant for the 31 December 2014 comparative) and 50% of the deferred tax provisions.

FINANCING

It was announced on 8 May 2015 that the Trust's loan facilities with Barclays Bank PLC ("Barclays") have been extended and the maturity date of all its borrowings (€271.5m) has been extended to 15 October 2015.

The current interest rates will continue to apply to the facilities during the extension period. Arrangement fees (charged at 2% per annum pro-rated) on the initial and new extensions will all be deferred to the new maturity date and will be payable to the extent that the Trust has sufficient cash funds at that time. The Trust is currently compliant with its borrowing covenants.

The Trust has the support of its lender for an orderly realisation of its investment property. To further this endeavour, the Trust has entered into a formal agreement with Barclays in which an operational framework is being developed to achieve this realisation in a consensual manner. The Trust will also continue to consider refinancing options including the potential refinancing of assets by third party lenders.

The Trust will provide further updates in due course.

DIVIDEND

The Trust does not currently propose to pay dividends.

PROPERTY UPDATE

The Trust's Investment Manager has continued to concentrate on active asset management and property management initiatives within the portfolio to secure the Trust's income and there has been further progress in the letting of vacant areas and the extension of leases.

Since 1 January 2015, new leases and lease extensions covering approximately 3,915 square metres (1.6% of the Trust's current portfolio by area) have been achieved as detailed below.

FRANCE

· Goussainville - A new 3/6/9 year lease from January 2015 was signed with JAG Diffusion, a cleaning company, on 180 square metres of office space.

· Fresnes - A new 3/6/9 year lease from April 2015 was signed with existing tenant, Anteos on 730 square metres of warehouse space; and a new 3/6/9 year lease from April 2015 was signed with LBF CREA, a public relations and exhibition company, on 245 square metres of vacant office and warehouse space.

· Mulhouse - A new fixed 9 year lease from October 2015 was signed with Credit Mutuel, a major French bank, on 215 square metres of vacant ground floor space for a branch; and a 3 year lease extension to August 2018 was signed with existing tenant UFCV on 315 square metres of office space.

SPAIN

· Cordoba - Juguetilandia extended their lease on a 1,030 square metre retail unit until January 2016; Dia extended their lease on a 1,200 square metre supermarket unit until September 2016. 

· Ecija - Existing tenant, Burger King, have purchased their 245 square metre restaurant unit.

GENERAL

The Investment Manager is also focussed on developing the operational framework with Barclays to achieve an orderly realisation of the Trust's investment property and realising equity in asset sales to support the settlement of the bank borrowings as they mature and further updates on this process will be provided in due course.

The Investment Manager remains focussed on ensuring service charges are controlled; the annual level of property costs is closely monitored and additional sources of income are identified.

The Trust's portfolio has an overall level of average occupancy of 80% (82% at 31 December 2015), measured by rental income as a percentage of potential total income, and the vacancy rate has increased from 18% to 20% during the period primarily due to the termination of a number of smaller leases. The weighted average lease length as at 31 March 2015 was 10.3 years to expiry and 6.6 years to next break with 88% of the current portfolio income coming from Grade A tenants.

RENTAL INDEXATION

The INSEE Construction Cost Index ("ICC"), applicable to the Trust's leases in France, showed an annualised growth of 0.62% for the latest published quarter, Q4 2014, following an annualised growth rate of 0.93% for Q3 2014.

The Spanish Consumer Price Index, applicable to the Trust's leases in Spain, was running at an annualised rate of growth of -0.6% as at the end of April 2015.

For further information:

Dick Kingston, Chairman, Alpha Pyrenees Trust Limited 01481 231100

Paul Cable, Fund Manager, Alpha Real Capital LLP 020 7391 4700

For more information on the Company, please visit www.alphapyreneestrust.com.

FORWARD-LOOKING STATEMENTS

This interim management statement contains forward-looking statements which are inherently subject

to risks and uncertainties because they relate to events and depend upon circumstances that will

occur in the future. There are a number of factors that could cause actual results to differ materially

from those expressed or implied by such forward-looking statements. Forward-looking statements are

based on the Board's current view and information known to them at the date of this statement. The

Board does not make any undertaking to update or revise any forward-looking statements, whether as

a result of new information, future events or otherwise. Nothing in this interim management statement

should be construed as a profit forecast.