ARENA REIT. — Capital/Financing Update 2014

Mar 30, 2014

ASX Announcement 31 March 2014

DEBT FACILITY TERM EXTENSION AND IMPROVED PRICING

Arena Investment Management Limited ( Arena ), as responsible entity of Arena REIT ( ARF ) today announced that it had extended the maturity and improved the pricing of its existing debt facility with ANZ and NAB.

The debt facility, which had an expiry date in June 2016, has been split into two equal tranches of $70 million and extended to June 2017 and June 2019 respectively. In addition to the extended maturity, there has also been a significant reduction in bank margins.

The key details of the refinance are:

• Facility limit remains unchanged at $140 million (currently drawn to $107 million)

• Facility term extended to:

  • $70 million maturing June 2017; and

  • $70 million maturing June 2019;

• Weighted average debt maturity increased from 2.2 to 4.2 years.

• Significantly improved margin on drawn debt.

James Goodwin, Arena Joint Managing Director, said, "This is a great result for ARF security holders providing extended debt maturity out to June 2017 and 2019. The extension of term and significantly improved pricing is a reflection of how financiers are now rating Arena REIT's strong financial covenants, prudent gearing and long lease profile".

James Goodwin Joint Managing Director Arena Investment Management Limited

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Arena Investment Management Limited ACN 077 235 879 AFSL No. 233190 Responsible entity of Arena REIT stapled group (ASX:ARF) Comprising Arena REIT No.1 (ARSN 106 891 641) and Arena REIT No. 2 (ARSN 101 067 878)

Locked Bag 32002 Collins Street East T +61 3 9093 9000 Melbourne VIC 8003 Freecall 1800 008 494 info@arenainvest.com.au F +61 3 9093 9093

71 Flinders Lane Melbourne VIC 3000 www.arenainvest.com.au

Arena REIT (ASX:ARF) ASX Announcement 31 March 2014

About Arena REIT

Arena REIT is an S&P/ASX 300 listed stapled group with a strategy to invest in sectors such as childcare, healthcare, education and government tenanted facilities leased on a relatively long term basis. ARF owns 186 childcare centres, 7 development sites and 6 large scale medical centres situated throughout Australia with an aggregate value of over $330 million. Distributions are paid to investors on a quarterly basis.

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

Legal notice

This ASX announcement has been prepared by Arena Investment Management Limited (“Arena”) for information purposes only and is not financial product advice. 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 and if necessary obtain professional advice in relation to this announcement.

This announcement may contain forward-looking statements including certain forecast financial information. Forward-looking statements are made only as at the date of this announcement and involve known and unknown risks, uncertainties, assumptions and other factors, many of which are beyond the control of Arena and its directors. Such statements are not guarantees of future performance and actual results may differ materially from anticipated result, performance or achievements expressed or implied by the forward-looking statements. Other than as required by law, although they believe there is a reasonable basis for the forwardlooking statements, neither Arena nor any other person (including any director, officer, or employee of Arena or any related body corporate) gives any representation, assurance or guarantee (express or implied) as to the accuracy or completeness of each forward-looking statement or that the occurrence of any event, result, performance or achievement will actually occur. You should not place undue reliance on any of the forwardlooking statement.

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