Press releases – 2007

DTZ report values Chagala Group assets up 35% over 12 months at US$194,353,218

15 Oct 2007

Chagala Group, the specialist Kazakh real estate developer and operator, commissioned the chartered surveyors DTZ to appraise the market value of its portfolio of assets and projects. The final report, released on the company's website today (www.chagalagroup.com), concludes that the current market value of the Group, as at 1 October 2007, is US$194,353,218, which represents an increase of 35% over the past 12 months.

DTZ have value each of the properties in accordance with the relevant parts of the current RICS Appraisal and Valuation Standards and each property is defined in three distinct categories: properties held as investments, properties in the course of development and properties held for future development. The net annual rent for each of the properties has also been included within the valuation.

DTZ have valued the Market Values of the freehold interests in the properties as follows:

• Existing Properties US$104,616,767
• Planned Properties US$80,236,451
• Vacant Land US$9,500,000
• TOTAL US$194,353,218

The increased values have resulted across the company's portfolio in the regions of Aktau, Atyrau, Bautio, Uralsk, Ust-Kamenogorsk and Almaty. This represents progress made at developing the Group's existing assets and taking advantage of the companies leading market position by investing in opportunities as they have presented themselves.

Tim Abson, Chief Executive of Chagala Group, commenting on the DTZ report, said:

"I am proud to note the increase in the market value of Chagala which has come about through the hard work of management and investment activities throughout the Group. Our strong relationship with the oil and gas companies in Western Kazakhstan and quality product has ensured continued high occupancy rates in all of our properties and this strong demand is expected to continue. Our market leading position in the region and strong cash position also allows us to identify and take advantage of investment opportunities at a very early stage. We look forward to continued growth and success going forward."

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