AUSTRALIAN UNITY OFFICE FUND — Capital/Financing Update 2016

Aug 10, 2016

11 August 2016

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Investor update

Australian Unity Office Fund (ASX: AOF) announces an update to investors on AOF’s progress since its listing on 20 June 2016.

Progress since listing

Mark Pratt, General Manager, Real Estate Investment for Australian Unity said: “We have made good progress in the short time since listing AOF and we are confident in delivering on the objectives outlined in the PDS.

“We have successfully refinanced the debt facility and completed the hedging arrangements for AOF using the proceeds of the initial public offer, all as contemplated in the PDS.

“All investors who requested a withdrawal prior to AOF listing on the ASX were also paid in full from the proceeds of the initial public offer.

“Having successfully completed these capital management activities, AOF’s gearing ratio is 29.37% as at 30 June 2016 compared to the PDS forecast of 30%. AOF’s NTA is $1.95 per unit as at 30 June 2016.”

Priorities and outlook

ASX code: AOF

Responsible Entity:

Australian Unity Investment Real Estate Limited ABN 86 606 414 368 AFSL 477434

Enquiries:

Australian Unity Office Fund Investor Services

1300 721 637 or +61 2 8016 2890 (outside Australia)

Contact details:

114 Albert Road South Melbourne VIC 3205 Tel: 13 29 39

Grant Nichols, AOF’s Fund Manager, said: “Our key priority remains on leasing current vacancy and reducing the short-to-medium term lease expiry risk to meet AOF’s objectives.

“AOF’s earnings are underpinned by long term leases to investment grade assets. Approximately 50% of the portfolio is leased to tenants like Telstra (30%), the NSW State Government (15%) and GE Capital Finance (8%) on leases in excess of five years.”

Australian Unity Investment Real Estate Limited, AOF’s responsible entity, confirms the 2017 financial year Funds From Operations guidance of 16.4 cents per unit and the 2017 financial year distribution guidance of 14.8 cents per unit. Distributions will be paid quarterly.

AOF's objective is to provide investors with sustainable income returns via quarterly distributions and the potential for capital growth over the long-term by investing in a diversified portfolio of Australian office properties.

More information on AOF can be found on the Fund’s website www.australianunityofficefund.com.au