Sdic Power. Regulatory News (SDIC)

4 June 2010

Speymill Deutsche Immobilien Company plc

("SDIC" or "the Company")

Update on Bank Facilities and Internalisation of Management

Further to the announcement of the Company's interim results for the period ended 31 December 2009 on 30 March 2010, the Board of SDIC, together with the Company's advisors, have continued discussions with representatives of its lenders in relation to negotiating a long term reorganisation of its banking facilities.

Following the one Debt Service Cover Ratio ("DSCR") covenant breach identified in previous announcements, the Board has undertaken a thorough review of the Company's financing position and it has become evident that the Company is likely to remain in breach of the DSCR covenant on the one loan facility and it is anticipated that the Interest Cover Ratio ("ICR") covenant on two other facilities is likely to be breached at the next calculation date which is 30 June 2010.

Further, the Company's current cash forecasts indicate that it will not be in a position to meet its amortisation payments on three of the five financing packages for which amortisation is payable. The Company is applying for a deferral of these payments with its lenders as negotiations on a revised, long term funding solution are progressed.

As indicated in the "Outlook" section of the Chairman's statement included in the interim results announcement in March 2010, a long term solution is anticipated to include a recapitalisation of the Company through an equity fundraising and the internalisation of the management, investment advisory and property management functions ("Internalisation").

In relation to the Internalisation, the Board is pleased to announce that it has reached an advanced stage in negotiating heads of terms with Speymill plc ("Heads of Terms") in relation to the termination of the Investment Management Agreement and the acquisition of the Company's investment adviser, GOAL service GmbH ("GOAL"). The Company has commenced the process of consulting with the various relevant stakeholders prior to the Heads of Terms being formally agreed.

The Internalisation is an important step towards achieving an overall funding solution as it is anticipated that it will enable the Company to realise a substantial level of cost saving, with an immediate impact on the level of monthly cash outflows. Full details of the Internalisation will be provided in due course once a final agreement has been reached with the relevant parties.

The Board is fully engaged in regular constructive discussions with the lending banks and progressing these with a view to ensuring that a long term funding solution is agreed with its lenders and this, together with operational improvements that continue to be realised, is anticipated to secure the Company's future to the advantage of all stakeholders. Further updates will be provided to the market, as appropriate.

For more information, please visit http://www.speymilldeutsche.com or contact:

Notes to Editors:

Speymill Deutsche Immobilien Company plc is a pan-German residential property investment company, which listed on the AIM market of the London Stock Exchange in March 2006, raising £170 million. In May 2007, SDIC raised a further €250 million through a C share placing. The Euro denominated fund aims to provide investors with an attractive level of income together with the prospect for long-term capital growth.

The German residential market is viewed as attractive to investors due to a number of factors including rising German economic activity and productivity, and the availability of assets at below replacement cost. Acquired properties should, through active management, also have the potential for increased rental rates and accordingly improved capital values and increased yield.

Speymill Property Group Limited is the appointed Manager of SDIC and, in conjunction with the Investment Adviser, Goal service GmbH, it identifies acquisition opportunities for the Company, which fit within its investment criteria.