Centuria Property Funds Corporate Profile 2012

Corporate Profile

2012

Centuria Property Funds

Corporate Profile September 2012

Rewarding investment through superior asset selection and active asset management About Centuria

Centuria Property Funds Limited was formed in 1999 to offer investments in high-quality, growth-orientated commercial property assets. Centuria has a specific focus on the commercial and industrial property sectors.

Centuria has a “Total Return” philosophy which means there is a commitment to achieving superior returns from a combination of income and capital growth.

Our experienced hands-on approach means that we’re able, with every purchase, to identify investments with a strong mix of income revenue, capital growth potential and tax benefits.

“Centuria is an experienced Investment Manager with a proven track record.”

Centuria have completed 17 Funds with a combined value of over $300 million with an average return to Investors of 17.1% per annum*. * Past performance is not a reliable indicator of future performance. Please refer to the last page of this document for important information on how performance is calculated.

The Centuria portfolio currently consists of: – 30 unlisted funds – 46 individual properties – A$1 billion of commercial property – 3,800 investors

In addition Centuria has completed 17 property funds with a combined value of over $300m.

Centuria Property Funds is a wholly-owned subsidiary of Centuria Capital Limited, an ASX-listed financial services company.

* Information current as at September 2012

Sectors of interest:

Darwin

Commercial Industrial

Geographic locations All capital cities and of interest: selected regional locations

NT QLD

Price range:

$25 million to $100 million per asset

Reason to invest:

Infrastructure/ zoning changes

Brisbane Beaudesert

SA

Rutherford

NSW Griffith

Adelaide

Sydney Wollongong Canberra

VIC

ACT

Melbourne

Strategic locations Value add potential

Centuria Property Funds

“Centuria has established itself as a leading direct property fund manager in the Australian market.”

Asset Management A critical part of the success of property investment is the quality of the management of tenants and ongoing management of the physical aspects of the property.

Capital gain potential is maximised by ensuring the most efficient use of space, conducting services upgrades, building refurbishment and assessing potential re-development.

85% of the Centuria portfolio is managed by our in-house property division.

Our team is comprised of experienced property professionals with backgrounds in leasing, agency and valuation.

Any property managed externally is managed by hand picked experts in their locations and asset types. They report directly to Centuria’s Head of Assets and National Leasing Manager.

Fund Management Centuria has developed a totally unique, web-based, in-house Investor management system which manages all aspects of investment including registry, accounting, distribution, and correspondence. Investors can keep up to date with information related to their investment, including all Fund correspondence, distribution and tax statements and property performance through regular updates on Centuria Property Funds’ website (www.centuria.com.au/property) and by logging into the Investor Database.

Centuria believes that its fundamental property asset experience, coupled with its funds management pedigree, place it in a unique position to maximise benefits for Investors.

Case Studies Recent Sales 607 St Kilda Road, Melbourne, VIC

35 Spring Street, Melbourne, VIC

2 Australia Avenue, Sydney Olympic Park, NSW

Acquisition Price

$21,000,000

Acquisition Price

$35,000,000

Acquisition Price

Sale Price

$28,541,000

Sale Price

$45,500,000

Sale Price

• Acquired in October 2002 for $21.0 million within the Centuria Direct Property Trust • Major tenant vacated in 2010 and Centuria sought to reposition the building to maximise value • Comprehensive cosmetic and services upgrade was undertaken in 2011 which included a significant NABERS upgrade • Result was a significant increase in leasing activity with the property now 100% leased with a long term WALE • Sold in June 2012 for $28.54 million

• Acquired in February 2003 for $35.3 million within the Centuria Direct Property Trust • The property was actively managed from 2003 until 2010 with 100% occupancy • A scheme was commissioned for a 40-storey high-end residential re-development • Property sold in 2010 to Cbus, a large superannuation fund, for $45.5 million • The sale agreement allows a new Centuria Development Fund to re-invest into the $400 million development project as a Joint Venture partner

$8,010,000 $14,000,000

• Acquired in January 2000 for $8,010,000 • The property was actively managed until 2009 retaining 100% occupancy throughout • A scheme for a mixed-use redevelopment was commissioned over the site • The property was sold to a potential developer for $14 million in 2009, delivering a Capital Gain to Unit Holders of 100% and an average yield of 8% p.a.

Corporate Profile September 2012

Case Studies Recent Acquisitions 200 Creek Street, Brisbane, QLD

Acquisition Price

8 Australia Avenue, Sydney Olympic Park, NSW

$37,700,000

• Fully refurbished A-grade building in the Brisbane CBD fringe • 85% leased to Government, multinational and national tenants • 5+ Year WALE • High car parking ratio (88 spaces) • Acquisition at a discount to valuation and a 9.85% acquisition yield • Forecast average income return: 9.50% • Forecast IRR: 12.60%

Centuria Capital

Acquisition Price

$30,150,000

• Brand new A-grade building • Fully leased to Government, multinational and national tenants • 6 Year WALE • High car parking ratio (119 spaces) • Acquisition at a 5.8% discount to valuation and an 8.83% acquisition yield • Forecast average income return: 8.60% • Forecast IRR: 11.30%

441 St Kilda Road, Melbourne, VIC

Acquisition Price

$58,000,000

• A-grade building with large floor plates • 4 Year WALE • High car parking ratio (340 spaces) • Acquisition at a discount to valuation at a 9.80% acquisition yield • $2.5 mill Vendor contribution to services upgrade • Forecast average income return: 9.50% • Forecast IRR: 16.00%

Centuria Property Funds is a wholly-owned subsidiary of Centuria Capital.

Centuria Capital is an ASX-listed diversified funds manager (ASX Code: CNI) with $2 billion in funds under management. We offer a diverse range of investment opportunities – from tax-effective investment bonds to unlisted property funds.

We’ve been providing investment and other financial products and services since 1980 – until recently under the banner of the Over Fifty Group. And although we’ve recently made changes to our brand, one thing that’s definitely not changed is our approach.

Our drive, allied with our inside knowledge of the sector and intimate understanding

To discuss investment opportunities please contact John Taylor at Centuria Property Funds on 02 8923 8923 or email john.taylor@centuria.com.au.

Performance Calculation: *Annualised total return of 17.1% as at September 2012 and is the average of returns across all funds managed to completion and wound up by Centuria Property Funds since 1998 and includes capital gains as well as distributions paid during the life of completed funds shown on a per 1 annum basis. The annualised total return does not represent the current performance of any of the Centuria’s funds currently under management.

Total returns provided in the case studies include capital gains as well as distributions paid during the life of completed funds shown on a per annum basis. Performance has been determined after the properties are sold and funds wound up. Each fund managed by Centuria Property Funds will have different characteristics, properties and risks and should be assessed by an investor independently of the performance of completed funds. Average per annum returns calculated at the completion of a fund does not take into account returns in any particular year and current or future funds may experience fluctuations in asset values and distributions during the life of a fund.

Disclaimer: This document is issued by Centuria Property Funds Limited (Centuria) ABN 11 086 553 639 AFSL 231149. Information in this document is general information only. Before you make any decision in relation to investing, we recommend that you obtain financial advice from a licensed financial adviser.