ABACUS GROUP — Capital/Financing Update 2015

Mar 17, 2015

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ASX ANNOUNCEMENT

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Successful completion of Institutional Entitlement Offer raises approximately $97 million

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Abacus Property Group (Abacus) has successfully completed the institutional component (Institutional Entitlement Offer) of the accelerated non-renounceable entitlement offer (Entitlement Offer) raising approximately $97 million. The Entitlement Offer was announced on Monday 16 March 2015 and offered entitlements to eligible securityholders on the basis of 1 new security for 12 existing securities. The offer was conducted at a fixed price of $2.82 and new securities will rank equally with existing securities and be entitled to the distribution for the six months ending 30 June 2015.

The Institutional Entitlement Offer saw very strong take up from existing institutional securityholders, with almost all eligible institutional securityholders taking up at least their entitlements. The Institutional Entitlement Offer shortfall was significantly oversubscribed by existing and new securityholders.

New securities issued under the Institutional Entitlement Offer are expected to be allotted and commence trading on Thursday 26 March 2015.

The Institutional Entitlement Offer was underwritten by J.P. Morgan Australia Limited and Shaw ICS Advisory Pty Limited.

The proceeds of the Entitlement Offer will be immediately applied to reduce debt following the settlement of Oasis Shopping Centre. The raising will provide growth capital for accretive acquisitions of core plus property, capital commitments to existing and new development projects and third party capital initiatives.

Abacus either alone or together with capital partners has acquired assets since June 2014 of over $300 million and has invested over $88 million across its development pipeline.

Abacus has a track record of delivering strong equity returns from the core plus assets that are taken through the Abacus journey. Recent sales of assets such as Birkenhead Point Shopping Centre and Marina, Sydney and 484 St Kilda Road, Melbourne have delivered IRRs of 24% and 34% respectively on Abacus’ equity investment.

Abacus today has an extensive pipeline of core plus assets which, if Abacus is successful in acquiring, will be accretive in the immediate term and provide a platform for ongoing growth. While the market is competitive Abacus has a strong record of acquiring assets throughout the cycle and is encouraged by the depth of opportunities presented to it both on and off market.

Managing Director, Dr Frank Wolf said; “We are very pleased with the strong support shown for Abacus through demand from institutional investors, which demonstrates the market’s continued confidence in Abacus and our investment strategies. We appreciate and thank our existing securityholders for their committed and ongoing support. We are also pleased to be able to welcome a small number of new high quality institutional investors to further improve the Abacus register. We

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are confident of accessing opportunities that will provide strong recurring revenues to support the Group’s distributions to securityholders and also opportunities for enhanced capital returns”.

The Retail Entitlement Offer opens on Friday 20 March 2015, and may raise up to approximately $24 million. Retail investors who hold Abacus securities as at 7.00pm (AEDT - Australian Eastern Daylight Time) on Thursday 19 March 2015 (Record Date) and have a registered address in Australia and New Zealand (Eligible Retail Securityholders) are being offered the opportunity to participate in the Retail Entitlement Offer at the same price (being $2.82 per new security) and at the same offer ratio (being 1 for 12) as offered under the Institutional Entitlement Offer. The new securities to be issued under the Retail Entitlement Offer will rank equally with existing Abacus securities on issue, including being entitled to the distribution for the six months ending 30 June 2015. Details of the Retail Entitlement Offer will be mailed to Eligible Retail Securityholders commencing from Tuesday 24 March 2015. Eligible Retail Securityholders can also access the details of the Retail Entitlement Offer from Wednesday 18 March 2015 at www.abacusproperty.com.au by following the links.

Abacus securities are expected to resume trading from market open today.

18 March 2015

Ellis Varejes Company Secretary

Neil Summerfield Head of Investor Relations (+61) 2 9253 8600 www.abacusproperty.com.au

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