AUSTRALIAN UNITY OFFICE FUND — Capital/Financing Update 2017

Oct 9, 2017

10 October 2017

The Manager Company Announcements Office ASX Limited 20 Bridge Street SYDNEY NSW 2000

Dear Sir / Madam

Australian Unity Office Fund (ASX code: AOF)

Notification under section 1012DAA(2)(f) of the Corporations Act 2001 (Cth) as modified by ASIC Corporations (Non-Traditional Rights Issues) Instrument 2016/84

Australian Unity Investment Real Estate Limited ABN 86 606 414 368 ( AUIREL ) as responsible entity of Australian Unity Office Fund ARSN 113 369 627 ( AOF ) announced today an accelerated non-renounceable pro rata entitlement offer ( Entitlement Offer ) of 1 unit in AOF ( New Units ) for every 6.25 units in AOF held by all holders with registered addresses in Australia and New Zealand ( Eligible Unitholders ) as at 7:00pm (AEDT) on Thursday, 12 October 2017 (the Record Date ) and certain institutional holders as at the Record Date in other jurisdictions in which AUIREL makes offers.

AUIREL gives notice under section 1012DAA(2)(f) of the Corporations Act 2001 (Cth) as modified by ASIC Corporations (Non-Traditional Rights Issues) Instrument 2016/84 ( ASIC Instrument ) that:

1. AUIREL will offer New Units in AOF for issue pursuant to the Entitlement Offer without a product disclosure statement for the New Units in AOF being prepared;

2. as a disclosing entity, AUIREL (as the issuer of New Units in AOF) is subject to regular reporting and disclosure obligations in respect of AOF;

3. as at the date of this notice, AUIREL:

   • (a) has complied with the provisions of Chapter 2M of the Corporations Act as they apply to AOF;

   • (b) has complied with section 674 of the Corporations Act as it applies to AOF;

4. there is no "excluded information" within the meaning of sections 1012DAA(8) and 1012DAA(9) of the Corporations Act which is required to be disclosed under section 1012DAA(7)(e) of the Corporations Act; and

5. the effect that the Entitlement Offer will have on control of AOF and the consequences of that effect will depend upon a number of factors, including investor demand. However, given the structure of the Entitlement Offer as a pro rata offer, the potential effect that the issue of the New Units will have on the control of AOF is as follows:

   • (a) if all Eligible Unitholders take up all their entitlements under the Entitlement Offer, there will be no material effect on the control of AOF;

   • (b) to the extent that any Eligible Unitholder fails to take up all their entitlements under the Entitlement Offer, that Eligible Unitholder's percentage holding in AOF's units will be diluted by the issue of the New Units;

   • (c) the percentage holding in AOF's units of unitholders with registered addresses outside of Australia and New Zealand (excluding any relevant institutional holders) will be diluted as a result of the issue of the New Units; and

   • (d) although the issue of New Units which are not taken up by Eligible Unitholders under the Entitlement Offer may increase the voting power of institutional investors and institutional unitholders who may be allocated New Units via the bookbuild and institutional commitment processes to be conducted by the underwriters to the Entitlement Offer, it is not expected to have any material effect on the control of AOF.

Yours faithfully

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Emma Rodgers Company Secretary

Australian Unity Investment Real Estate Limited