THE DEVERONSIDE TRADING COMPANY II LIMITED

A UNIQUE OPPORTUNITY TO INVEST IN A TRADING COMPANY WHICH INCLUDES GREATLY IMPROVING SALMON AND SEA-TROUT FISHING ON ONE OF SCOTLAND’S PRETTIEST RIVERS. IT ALSO COMPRISES VERY COMFORTABLE LODGE AND COTTAGE ACCOMMODATION, EXTENSIVE HIGH-QUALITY COMMERCIAL FORESTRY AND MIXED SHOOTING AND STALKING.

What is the Deveronside Trading Co II Ltd?

The Deveronside Trading Company II Ltd (DTC II) is an investment vehicle pioneered by the directors of Edinmore Holdings Limited, a company wholly owned by Caledonia Investments plc. It has a proven track record for identifying opportunities for improving property assets throughout the UK.

Background

Edinmore Holdings Limited has set up Deveronside Trading Company Limited (“DTC”) as a vehicle to buy a selection of rural property assets which the directors had identified as having substantial potential for improvement. These assets, which are in the valley of the middle section of the River Deveron in Aberdeenshire, about 30 miles northwest of Aberdeen, include:

3 beats of prime salmon and sea-trout fishing, 3 residential properties, agricultural land and 906 acres of commercial coniferous forestry (“the Property”). DTC and DTC II shall enter into an option agreement whereby once sufficient funds are received from potential investors DTC II shall purchase the Property from DTC allowing investors in DTC II the comfort of investing in a previously untraded vehicle.

Recognising the potential for improvement in the performance of the assets and productivity of the salmon and sea-trout fishings in particular, the directors of DTC have spent two years making substantial improvements to the Property. This will enable the potential to be unlocked over the coming years. With a 30% improvement in the salmon/grilse catch alone in just two seasons, the early signals are encouraging.

The purpose of the directors’ purchase of the property is to run DTC II as a trading company, the shares in which should qualify for 100% Business Property Relief under existing UK Inheritance Tax legislation. This is on the basis that the investment is held for a minimum period of two years.

By way of a statement of their faith in this initiative, Edinmore Holdings Limited will subscribe for a 10% shareholding in DTC II.