Kermadec Property Fund Revaluations

4 April 2007

Kermadec Property Fund Revaluations Ahead Of Prospectus Forecast

Kermadec Property Fund Limited (KPF) today announced its property assets have recorded a revaluation gain of approximately $8.8 million for the four month period to 31 March 2007, compared to the prospectus forecast revaluation gain of $3.6 million.

The revaluation gain will increase the value of KPF’s total property assets to $105 million, and increases the NTA by approximately 9 cents per share to $1.15 compared to the prospectus forecast of $1.06 and IPO issue price of $1.00 per share.

The total revaluation gain represents an approximate 9% increase on the prospectus forecast NTA for 31 March 2007. Valuations of the Company’s assets are conducted by independent valuers. The revaluations are subject to audit and will be confirmed as part of the 31 March 2007 financial result.

Managing Director Mark Francis, said the revaluations supported the purchase price for the initial portfolio and, with capitalisation rates ranging from 7.25% to 10%, the portfolio was expected to continue to provide yields at the upper level of sector returns.

As stated in KPF’s Prospectus and Investment Statement dated 7 November 2006, a gross dividend of 2.61 cents per share is expected to be declared for the four month period to 31 March 2007. KPF expects to report its unaudited financial results for the four month period to 31 March 2007 by late April 2007.

ENDS

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