BEACON LIGHTING GROUP LIMITED — Capital/Financing Update 2020

Dec 2, 2020

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ASX Announcement

3 December 2020

Beacon Commercial Property Fund Establishment

Beacon Lighting Group Limited (ASX: BLX) is pleased to announce its 50% involvement in the establishment of the Beacon Commercial Property Fund (Fund) and the acquisition of its first property.

Structure

The Fund has been established to own several subfunds which will be used to acquire properties for the purposes of leasing them to Beacon Lighting and other tenants. Currently, the Fund is 50% owned by the Beacon Lighting Group, with the other 50% owned by Rebeach Pty Ltd which is controlled by Ian Robinson, the Executive Chairman of the Beacon Lighting Group. Investment in the Fund may also become available to other third party investors in the future.

The Beacon Lighting Group has also established a 100% owned subsidiary called Beacon Commercial Property Fund Pty Ltd. Its role will be as Trustee, Fund Manager and Property Manager for the Fund and its various subfunds. Its responsibilities include rental collections, expense management, location of new properties, property development and leasing negotiations. It is intended to receive a commercial fee for doing so on terms to be mutually agreed.

The current Fund structure is presented below:

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Property Acquisition

The Beacon Commercial Property Subfund (Southport Nerang Road) has been set up as a subfund of the Fund to purchase, develop and lease the property of 333 Southport-Nerang Road, Molendinar, QLD, 4214. The property contains a high-profile building with a 46 metre road frontage to Southport-Nerang Road with exposure to 50,000 vehicles daily. The building area is more than 2,000 sqm and the land area is more than 5,000 sqm. Completion of the purchase of the property will occur on 7 December 2020 for $5.55 million plus stamp duty.

The property will be developed to include a new Beacon Lighting showroom which will be relocated from an existing Southport address. The new Beacon Lighting showroom will be complemented by another showroom, office or warehouse which is intended to be made available to be leased to a third party.

The 50% contribution by the Beacon Lighting Group inclusive of acquisition costs, stamp duty costs, and capital works costs is expected to be in the order of $3.28 million once the capital works are complete. No new debt has been used for the acquisition, which has been funded from existing cash resources and debt facilities.

The property at Southport-Nerang Road is the first property purchase to be completed by the Fund. Two additional potential property purchases are at advanced stages. Details will be released to the market in due course, including funding contributions contemplated of the Beacon Lighting Group.

Glen Robinson, the Beacon Lighting Group Chief Executive Officer said “that the establishment of the Beacon Commercial Property Fund was an exciting opportunity for the Group to acquire store locations to help reduce the exposure to rental increases and build the property assets for the Group and shareholders”.

Further Information

For further information please contact: Glen Robinson or David Speirs Chief Executive Officer Chief Financial Officer Beacon Lighting Beacon Lighting Ph: +61 3 8561 1555 Ph: +61 3 8561 1555

This update was authorised to be released to the ASX by the Beacon Lighting Group Board of Directors.

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