ARENA REIT. — Capital/Financing Update 2014

Jun 24, 2014

ASX Announcement 25 June 2014

CHILDCARE CENTRE DISPOSALS

Arena Investment Management Limited ( Arena ), as responsible entity of Arena REIT ( ARF ) is pleased to announce that today, as part of its ongoing strategy to remix and improve the quality of its portfolio, it has sold 10 childcare centres located in Victoria, New South Wales and Queensland ( Disposal Properties ) for an aggregate price of $14.2 million, reflecting a 47% premium above the current book value of $9.68 million (before associated selling costs and fees).

The Disposal Properties were all individually sold at a well-attended public auction conducted in Melbourne earlier today by Burgess Rawson following a marketing campaign over the past 4 weeks. The majority of the buyers were private investors. Arena was pleased with the strong interest and outcome generated by the marketing campaign.

The strategy to sell these assets is part of Arena’s ongoing active management and remixing of the ARF portfolio to improve its quality overtime. The net sale proceeds from the Disposal Properties will initially be applied to reduce debt, and subsequently be reinvested into funding ARF’s childcare centre development pipeline.

These disposals will have a positive direct impact on ARF’s net tangible asset value per security. The aggregate sale of the Disposal Properties reflects an average passing yield of 6.69% as compared to the average valuation yield of 9.83%, being a difference of 47%.

Bryce Mitchelson Joint Managing Director Arena Investment Management Limited

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Media enquiries: Bryce Mitchelson Joint Managing Director +61 408 275 375 bryce.mitchelson@arenainvest.com.au

Investor enquiries: Arena Investor Services 1800 008 494 (Freecall within Australia) +61 3 9093 9017 info@arenainvest.com.au

Locked Bag 32002 Collins Street East Melbourne VIC 8003 info@arenainvest.com.au

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Arena Investment Management Limited ACN 077 235 879 Responsible entity of Arena REIT (ASX:ARF) Comprising Arena REIT No. 1 (ARSN 106 891 641) and Arena REIT No. 2 (ARSN 101 067 878) 71 Flinders Lane Locked Bag 32002 Collins Street East Melbourne VIC 3000 Melbourne VIC 8003 www.arenainvest.com.au info@arenainvest.com.au

T +61 3 9093 9000 Freecall 1800 008 494 F +61 3 9093 9093

Arena REIT (ASX:ARF) ASX Announcement 25 June 2014

Legal notice

This document has been prepared by Arena Investment Management Limited ACN 077 235 879 AFSL No. 233190 (“Arena”) as responsible entity of the managed investment scheme(s) referred to on page 1. The information contained in this document is current only as at the date of this document or as otherwise stated herein. This document may not be reproduced or distributed without Arena’s prior written consent. The information contained in this document is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. Arena has not considered the investment objectives, financial circumstances or particular needs of any particular recipient. You should consider your own financial situation, objectives and needs, conduct an independent investigation of, and if necessary obtain professional advice in relation to, this document. Past performance is not an indicator or guarantee of future performance.

Except as required by law, no representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions, or as to the reasonableness of any assumption, contained in this document. By receiving this document and to the extent permitted by law, you release Arena and its directors, officers, employees, agents, advisers and associates from any liability (including, without limitation, in respect of direct, indirect or consequential loss or damage or any loss or damage arising from negligence) arising as a result of the reliance by you or any other person on anything contained in or omitted from this document.

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