IMPT.L Regulatory News (IMPT)

MARKET UPDATE

Group Borrowings

The Board of Close High Income Properties PLC (the "Company") is pleased to announce that on 19 April 2010 it successfully completed the refinancing of its loan facilities with Bank of Scotland Plc ("BOS") in respect of its subsidiaries, CHIP (One) Limited ("CHIP One"), CHIP (Three) Limited ("CHIP Three"), CHIP (Four) Limited ("CHIP Four") and CHIP (Five) Limited ("CHIP Five")

BOS Loan Facility

On 19 April 2010 the Company and its subsidiaries CHIP One, CHIP Three, CHIP Four and CHIP Five successfully completed the refinancing of a £54.1 million loan facility until 31 October 2012. As a result the Company has made a loan repayment of £1.0 million to BOS on 19 April 2010 to reduce the borrowings from BOS to the amount of the new loan facility.

The margin of the new loan facility is 2.6% per annum above LIBOR increasing by a further 2.6% per annum if any of the financial covenants are breached.

The financial covenants dictate that the Net Rental Income of the secured properties shall not be less than 1.25:1 for any test period, that combined rent for each calendar year shall not be less than £6.4 million and that the Company makes quarterly loan repayments of £0.2 million. In addition the Loan to Value ("LTV") shall not exceed 90% of the market value of the properties.

Following an increase in the value of the secured properties for the quarter ended 31 March 2010 of £1.0 million or 1.4% and the loan repayment of £1.0 million paid on 19 April 2010 the LTV currently stands at 70.4%.

Nationwide Building Society ("Nationwide") Loan Facilities

The Company has two loan facilities from Nationwide in respect of its subsidiaries CHIP (Two) Limited ("CHIP Two") and CHIP (Six) Limited ("CHIP Six"). The loan facility of CHIP Two and CHIP Six currently stands at £9.6 million and £18.9 million respectively. The first LTV covenant test date for these two loan facilities occurred on 1 April 2010.

CHIP Two

Effective from 1 April 2010 until 31 March 2011 the LTV covenant of CHIP Two must not exceed 75%. Thereafter the LTV covenant from 1 April 2011 until the expiry of the loan facility on 23 October 2012 the LTV covenant must not exceed 65%.

Following an increase in the value of the secured properties for the quarter ended 31 March 2010 of £0.4 million or 2.7% the LTV at the first test date of 1 April 2010 has reduced to 64.9%.

CHIP Six

Effective from 1 April 2010 until 31 March 2012 the LTV covenant of CHIP Six must not exceed 90%. Thereafter the LTV covenant from 1 April 2012 until the expiry of the loan facility on 23 October 2012 must not exceed 85%.

Following an increase in the value of the secured properties for the quarter ended 31 March 2010 of £0.1 million or 0.3% the LTV at the first test date of 1 April 2010 has reduced to 91.3%. However this represents a breach by CHIP Six as its LTV covenant exceeds 90%. CHIP Six has obtained a waiver from Nationwide for a period until 1 July 2010 and is confident, based on discussions to date with Nationwide, that terms to remedy this breach will be concluded during the waiver period.

Future Prospects

A more detailed announcement in respect of the Company's annual report and financial results for the year ended 31 December 2009 is expected to be released by the Board later this month. This announcement will include details on the Company's continuation which shareholders are required to vote on at the Company's Annual General Meeting in mid 2010.

For further information contact:

Steven Oliver

Close Investments Limited

020 7426 4000