Paris Realty Fund

Share Issue/Capital Change • Oct 6, 2010

€ 50 PER SHARE CASH CAPITAL INCREASE

PAREF is to raise about € 4.5 million in cash with the issue of 91,500 shares at € 50 each as part of a private placement.

This capital increase, carried out within the framework of the delegation of authority granted to the Management Board by the 17th resolution of the General Meeting of 19 May 2010, is reserved for investment services providers authorised to manage assets on behalf of third parties, qualified investors and a restricted circle of investors.

So as not to penalise PAREF shareholders, the Management Board set the subscription price above the average price of the last 3 and last 20 trading days of the PAREF share that preceded the Management Board's decision to launch this reserved issue.

The Company has already received subscription commitments for the greater part of the transaction.

Euronext will be requested to list the new shares on the same trading line as existing shares. The new shares will represent 9.08% of the share capital and 6.31% of voting rights following the capital increase. Since this transaction represents less than 10% of the share capital of the Company, the obligation to file a prospectus with the AMF does not apply.

The funds raised will enable PAREF Group to strengthen its financial position and accelerate its expansion, in particular in the area of management on behalf of third parties.

Shareholders' agenda 3rd quarter sales: 4 November 2010

About PAREF

PAREF Group operates in two major complementary areas:

• Commercial and residential investments: PAREF owns various commercial buildings in and out of the Paris region. The Group also owns the temporary usufruct of residential property in Paris.
• Management on behalf of third parties: PAREF Gestion, an AMF-certified subsidiary of PAREF manages 3 SCPIs and 3 OPCIs.

At 30 June 2010, PAREF Group owned more than € 200 million in property assets and managed assets worth € 435 million on behalf of third parties.

PAREF shares are listed on Compartment C of NYSE Euronext Paris - ISIN: FR00110263202 - Ticker: PAR

Hubert LEVY-LAMBERT Chairman of the Management Board

Alain PERROLLAZ Chief Executive Officer

Tel: +33 (0)1 40 29 86 86

www.paref.com

Agnès VILLERET Analyst – Investor Relations - agnes.villeret@citigate.fr

Lucie LARGUIER Financial Press Relations- lucie.larguier@citigate.fr

Tel: +33 (0)1 53 32 78 89 / 95