RELAUNCH UPDATE
Eurocastle will commence its new investment strategy by initially focusing on opportunistic real estate in Greece with a plan to
expand across Southern Europe, where the Manager has an extensive footprint and a long-term track record investing in this asset
class. The Company will invest primarily in real estate auctions leveraging the Manager’s deep knowledge of the sector, which
offers significant investment opportunities in the current market cycle. The Board believes that this strategy will allow Eurocastle
to deploy available cash in order to establish a platform and create a meaningful track record, while generating attractive risk adjusted
returns in the short term.
At the same time, the Board will continue to monitor the market environment for raising new capital in order to assess pursuing all
elements of its new investment strategy, which would require additional capital to achieve meaningful scale.
The Board considers that any potential additional costs resulting from this phased approach are adequately covered by the
Company’s existing Additional Reserves. The Board will continue to evaluate these reserves and the Company’s available capital,
taking into account investment opportunities and the performance of the new strategy.
Shareholders should however be aware that the implementation and performance of the Company’s new investment strategy is
subject to risks, uncertainty, and assumptions. The Manager is currently in the early stages of pursuing a new investment strategy
and there can be no certainty that it will have success in doing so. There is likewise no certainty that it will be able to attain sufficient
scale to achieve the desired returns. In addition, changes in economic conditions generally and the real estate market specifically,
the availability of appropriate investment opportunities and the ability to raise financing on suitable terms may also affect the success
of the Relaunch. Accordingly, there is no guarantee that the Company’s new investment strategy will be effectively implemented
nor will there necessarily be a future opportunity for shareholders to achieve an exit from their investment in the Company at a price
equal to or higher than the current share price.
For further details of the Relaunch, the Company’s new investment strategy and the Additional Reserves, please refer to the Circular
published in July 2022 and available on the Company’s website under the Periodic Reports and Shareholder Communications