Future funds

We see strong support for continued performance from real estate assets in the Baltic region. We are therefore launching a new private equity fund to enlarge the scale of our investments and to extend the geographic scope to Estonia and Lithuania. We believe that our network of relationships, developed over seven years of “on the ground” experience in Latvia, will give us competitive advantages over other investors in the Baltic region.

Permal Asset Management has agreed to provide seed capital for the new fund in the amount of $10 million. With over $16 billion under management and a pioneer in the multi-manager approach to investing since 1973, Permal has also been an investor in Latvia Realty Fund since its inception. Please refer to www.permal.com for an interview with Permal’s chief executive, Isaac Souede (“Picking the Best – the Permal Way”, Financial Times, June 30, 2003).

The new fund will also get an upgrade in skills through the addition of Mr. Charles Jobson as a special limited partner participating in major decisions. Mr. Jobson is the majority owner of Delta Partners, LLC, a family of hedge funds with over $400 million in assets. He was previously Vice President at Baring Asset Management where, as a member of an investment committee managing $3.5 billion, he covered a wide range of consumer stocks. With this strong finance background, we offer a broader set of complementary skills to profit from a rising market that is still largely undiscovered.

Please contact our director, Richard N. Golden, at rng@latviarealty.com, if you have further questions about the new fund.