Vincent Tchenguiz Statement

“Peverel Group manages some 200,000 residential units throughout the UK and controls a number of subsidiary operating companies. We have been in consensual discussions with Bank of America Merrill Lynch, since late 2009, about the financial structure of the Group and we regret that their sudden actions have forced this Group in to administration.

We believe that their actions are a direct result of the very public commencement of the Serious Fraud Office’s investigation into events surrounding the collapse of Kaupthing bank.

Our Residential business model, of which Peverel was a part, owns 283,966 residential freeholds; manages 196,463 residential units and manages the freehold asset of 63,787 residential units in the UK (as at 31 January 2011).

The structure carries some £2 billion of debt and £2 billion of associated fixed rate and RPI swaps. The debt has been provided by, inter alia, Allied Irish Bank; Bank of America Merrill Lynch; Bayerische Landesbank; Citibank; Deutsche Bank; Lloyds Banking Group; Prudential UK; Royal Bank of Scotland; and UBS together with bond holders in a securitisation.

Peverel Group employs over 4,300 people and provides property management services to more than 300,000 residents. The uncertainty which this administration will cause is something which is now beyond our control.”