Related party transaction

21 June 2010

Speymill Deutsche Immobilien Company plc

("SDIC" or "the Company")

Related party transaction

Speymill Deutsche Immobilien Company plc (AIM: SDIC), the pan-German residential property investment company listed on AIM, announces that, today, Jim Mellon, a director and substantial shareholder of SDIC, agreed, subject to final documentation being signed, to lend the Company €2 million. The additional funds will be used to assist the Company with its working capital and certain financing requirements in the intervening period until such time as negotiations on a comprehensive debt restructuring with the Company's lending banks have concluded.

The terms on which Mr Mellon has agreed to lend the funds are set out below:

Term: Matures on 15 November 2010.

Interest: 7 per cent. per annum payable monthly in arrears.

Repayment: Repayable on maturity or, in the event of an equity fund raising prior to maturity, convertible, at Mr Mellon's option, into ordinary shares in the Company at a price per share equivalent to the price paid by investors in such a fund raising.

Security: The loan is secured against certain unencumbered properties within the Company's portfolio

Fee: A facility fee of 2.5 per cent. to be rolled up to maturity.

Given Mr Mellon's relationship to the Company, the loan is considered to be a related party transaction pursuant to Rule 13 of the AIM Rules for Companies. The Company's directors (with the exception of Mr Mellon), having consulted with the Company's nominated adviser, Smith & Williamson Corporate Finance Limited, consider that the terms of the transaction are fair and reasonable insofar as the Company's shareholders are concerned.

-ENDS-

For more information, please visit http://www.speymilldeutsche.com or contact:

Notes to Editors:

Speymill Deutsche Immobilien Company plc is a pan-German residential property investment company, which listed on the AIM market of the London Stock Exchange in March 2006, raising £170 million. In May 2007, SDIC raised a further €250 million through a C share placing. The Euro denominated fund aims to provide investors with an attractive level of income together with the prospect for long-term capital growth.

The German residential market is viewed as attractive to investors due to a number of factors including rising German economic activity and productivity, and the availability of assets at below replacement cost. Acquired properties should, through active management, also have the potential for increased rental rates and accordingly improved capital values and increased yield.

Speymill Property Group Limited is the appointed Manager of SDIC and, in conjunction with the Investment Adviser, Goal service GmbH, it identifies acquisition opportunities for the Company, which fit within its investment criteria.