Alpha Group International Regulatory News (ALPH)

14 November 2014

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 30 September 2014 and the period up until the date of this announcement. The information contained herein has not been audited.

KEY POINTS

· STRATEGIC DISPOSAL OF GENNEVILLIERS PROPERTY AT BOOK VALUE FOR PROCEEDS OF €7.4 MILLION

· NEW LEASES AND LEASE EXTENSIONS COVERING 84,250 SQUARE METRES (33.7% OF THE TRUST'S CURRENT PORTFOLIO BY AREA) ACHIEVED SINCE 1 JULY 2014

· A NEW LEASE HAS BEEN SIGNED WITH THE TRUST'S LARGEST TENANT, ALCATEL-LUCENT, EXTENDING THEIR FIXED TERM COMMITMENT TO 9 YEARS

· WEIGHTED AVERAGE LEASE LENGTH HAS INCREASED TO 10.3 YEARS TO EXPIRY AND 6.6 YEARS TO NEXT BREAK FOLLOWING LEASE EXTENSIONS

· 86% OF PORTFOLIO INCOME COMES FROM GRADE A TENANTS

· 92% OF THE TRUST'S PORTFOLIO BY VALUE IS IN FRANCE AND 83% IS IN THE PARIS REGION

· ADJUSTED NAV* 10.7 PENCE PER SHARE AS AT 30 SEPTEMBER 2014 (30 JUNE 2014: 12.0 PENCE PER SHARE)

VALUATION AND NET ASSET VALUE ("NAV")

The Trust's investment portfolio was last valued on 30 June 2014 at €278.0m (£217.2m at 30 September 2014 exchange rate) giving an average valuation yield across the portfolio of 8.2% (French portfolio 8.1% and Spanish portfolio 9.0%).The next independent revaluation will take place as at 31 December 2014.

As at 30 September 2014 the adjusted NAV* is 10.7 pence per share. The decrease in adjusted NAV from 30 June 2014 (12.0 pence per share) is due to the combined effect of Euro weakening and the loss incurred in the period.

*Adjusted NAV - unaudited, after adjustments for the interest rate swap derivatives and 50% of the deferred tax provisions.

FINANCING

The Trust's existing borrowing facilities with Barclays Bank PLC terminate on 10 February 2015. The Board continues to pursue its options in order to support the settlement of the bank borrowings as they mature, including a combination of realising equity through asset sales and potential financing alternatives.

As at 30 September 2014, the Trust has total borrowings of £210.7m (€269.7m) under its facilities with Barclays and there are no Loan to Value ("LTV") covenant tests until loan maturity on any of the Trust's properties.

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 we are pleased to report further progress in the letting of vacant areas and the extension of leases.

Since 30 June 2014, new leases and lease extensions covering approximately 84,250 square metres (33.7% of the Trust's current portfolio by area) have been achieved. as detailed below.

FRANCE

· Villarceaux-Nozay A new 12 year lease has been signed with the existing tenant, Alcatel-Lucent, with a minimum fixed term of 9 years with effect from 29 August 2014. The new lease represents an increase of almost 5 years in fixed term commitment from the previous lease which had approximately 4 years remaining. The agreement includes a commitment from the Trust of €9m of staged capital expenditure towards creating both new lettable area and other building improvements at Nozay. This additional lettable area will generate an additional €487,000 of rental income per annum on completion. Nozay comprises approximately 36 hectares of business park space located close to one of Paris' largest business space centres, Courtaboeuf business park. It is also close to Campus Paris-Saclay, a scientific hub of academic establishments including 2 universities, 10 "grandes écoles" and 7 research organizations. Nozay contains campus style offices together with business space and ancillary accommodation totalling approximately 82,000 square metres and 3,000 car parking spaces post completion of the works.

· Goussainville - A new 3/6/9 year lease from November 2014 was signed with Design Location an exhibition stand equipment company, on 1,730 square metres of warehouse and office space.

· Ivry - A new 6/9 year lease from November 2014 was signed with Accedia, an electronics company specialising in CCTV and security, on 520 square metres of vacant office space.

At the Trust's Evreux property, MSL Quadralog's lease terminated in August 2014 on 9,640 square metres of warehouse space. The Trust's Investment Manager is actively involved in the campaign to re-let the property at the earliest opportunity.

The Investment Manager is also focussed on realising equity in asset sales to support the settlement of the bank borrowings as they mature and we are pleased to report the following progress in this regard:

PROPERTY SALE

On 7th October 2014 the Trust sold an office investment located at Gennevilliers for €7.4 million which is in line with its book value. The property totals 3,410 square metres and is located on an established business park 15km north of central Paris and is let entirely to Husqvarna France on a 9 year lease with a fixed term of 6 years from April 2014. The purchaser was FRUCTIREGIONS a SCPI managed by NAMI AEW Europe.

The proceeds from this sale will be held within the cash pooling arrangement established with the Trust's lenders, Barclays, to provide security for its loans and working capital for the Trust's operations.

GENERAL

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 83% (85% at 30 June 2014), measured by rental income as a percentage of potential total income and the vacancy rate has increased from 15% to 17% during the period primarily due to the termination of the lease to MSL Quadralog at Evreux. Following the lease extensions the weighted average lease length as at 30 September 2014 had increased to 10.3 years to expiry and 6.6 years to next break (from 7.0 years to expiry and 4.0 years to next break as at 30 June 2014) with 86% of the 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 -0.98% for the latest published quarter, Q2 2014, following an annualised growth rate of 0.12% as at Q1 2014.

The Spanish Consumer Price Index, applicable to the Trust's leases in Spain, was running at an annualised rate of growth of -0.2% as at the end of September 2014 but estimates for the end of October 2014 show that the contraction had decreased to -0.1%.

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 trading update 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 trading update statement

should be construed as a profit forecast.