BLACKWALL LIMITED — AGM Information 2016

Oct 25, 2016

26 October 2016

==> picture [249 x 38] intentionally omitted <==

ASX/Media Release

Annual General Meeting – CEO’s Address

I welcome investors to the BlackWall Limited 2016 Annual General Meeting. The past 18 months have been very active and productive for our businesses.

In particular we are pleased with the growth and progress of our operating subsidiary, WOTSO WorkSpace. The collaborative workspace and flexible office provider is beginning to have a positive impact on all aspects of our activities.

As you will see in the presentation slides following this address, we have begun tracking WOTSO’s “moving annual turnover” or MAT. This measure is commonly used in retail businesses and tracks gross revenue for the twelve months preceding a particular month. WOTSO’s MAT has more than doubled since June 2015 and annualised revenue is now $5.5 million. That slide also shows WOTSO’s potential once the sites we now have under development or in build-up phase reach occupancy expectation. Leaving aside new locations, WOTSO has the capacity to house over 1,500 members and generate around $11 million in annual turnover.

In addition to its contribution to our bottom line, WOTSO adds significantly to BlackWall Property Funds traditional property operations. In short we are a property developer and fund manager that brings its own “ready made” tenant.

Our recent acquisition of WOTSO Brisbane and WOTSO Adelaide are examples of this; both properties were purchased with vacant possession and required little capex. We are achieving pleasing take-up of office space and collaborative workspace and are close to finalising coffee shop leases for each site. Once we are through the start-up phase our aim is to syndicate the assets generating development upside.

WOTSO is also playing a significant role from a funds management perspective. BlackWall’s control of 55 Pyrmont Bridge Road grew from asset management through to a joint venture and, as recently announced, we are undertaking a wholesale capital raising to take full control of the property. WOTSO occupies almost 20% of the once vacant space at the project and has played a key role in the success of our turnaround strategy.

BlackWall Property Trust (ASX: BWR), the listed REIT is also a key part of BlackWall’s growth. BWR is a total return property trust holding a mix of stable commercial, retail and industrial assets in its Income Portfolio alongside three more active holdings in the Growth Portfolio. Last week the Trust launched a Rights Issue and Private Placement to raise approximately $12 million.

The capital raising is in response to a number of opportunities that have presented themselves to the Trust recently. Just over $9 million of the raising will be invested on completion. In the past 12 months the Trust has paid 100% tax-deferred distributions equating to an 8.3% yield on the issue price under the offer.

In closing, I would like to thank BlackWall’s shareholders, the investors in our funds, our tenants and WOTSO members for their support and continued patronage. I also thank our staff and board members for their considerable efforts.

Although it is early and we have much to do before the end of the year we wish all a happy and safe holiday season.

BLACKWALL LIMITED (ASX Code: BWF) ABN 37 146 935 131 Level 1, 50 Yeo Street, Neutral Bay, Sydney NSW 2089 Australia | PO Box 612, Neutral Bay, Sydney NSW 2089 Australia | Tel +61 2 9033 8611 | Fax +61 2 9033 8600 | www.blackwall.com.au

==> picture [136 x 69] intentionally omitted <==

==> picture [143 x 69] intentionally omitted <==

==> picture [141 x 69] intentionally omitted <==

BLACKWALL

==> picture [136 x 69] intentionally omitted <==

==> picture [143 x 69] intentionally omitted <==

==> picture [142 x 69] intentionally omitted <==

==> picture [143 x 69] intentionally omitted <==

==> picture [142 x 69] intentionally omitted <==

==> picture [141 x 69] intentionally omitted <==

==> picture [143 x 70] intentionally omitted <==

==> picture [141 x 70] intentionally omitted <==

WOTSO WorkSpace. Operating Businesses

Assets $27m

==> picture [142 x 69] intentionally omitted <==

==> picture [141 x 69] intentionally omitted <==

==> picture [306 x 133] intentionally omitted <==

----- Start of picture text -----

Real Estate Funds
Management
----- End of picture text -----

==> picture [308 x 133] intentionally omitted <==

----- Start of picture text -----

Properties $7.5m
----- End of picture text -----

==> picture [306 x 132] intentionally omitted <==

----- Start of picture text -----

Serviced Offices
Meeting and
----- End of picture text -----

==> picture [306 x 252] intentionally omitted <==

----- Start of picture text -----

Current Transactions
$12m BWR Rights
Issue and Placement
$15m Pyrmont Bridge
Road Buyout
----- End of picture text -----

==> picture [136 x 137] intentionally omitted <==

==> picture [143 x 137] intentionally omitted <==

==> picture [282 x 137] intentionally omitted <==

----- Start of picture text -----

BWR Holding 16%
----- End of picture text -----

==> picture [136 x 56] intentionally omitted <==

==> picture [143 x 56] intentionally omitted <==

==> picture [142 x 56] intentionally omitted <==

==> picture [141 x 56] intentionally omitted <==

==> picture [518 x 527] intentionally omitted <==

----- Start of picture text -----

WOTSO WORKSPACE
CURRENT SITES
$6.0
$5.5
$5.0
$4.5
$4.0
$3.5
$3.0
$2.5
$2.0
$1.5
Jun 15 Sep 15 Dec 15 Mar 16 Jun 16 Sep 16
MILLION
----- End of picture text -----

==> picture [94 x 208] intentionally omitted <==

WOTSO WORKSPACE

Turnover $5.5m Members 750

==> picture [39 x 13] intentionally omitted <==

----- Start of picture text -----

Today
----- End of picture text -----

Turnover $11m Members 1,500

==> picture [436 x 148] intentionally omitted <==

----- Start of picture text -----

$2.0
$1.5
Jun 15
Current Sites
At Economic
Maturity
----- End of picture text -----

==> picture [404 x 44] intentionally omitted <==

----- Start of picture text -----

Annualised Turnover Moving Annual Turnover (MAT)
----- End of picture text -----

==> picture [402 x 175] intentionally omitted <==

----- Start of picture text -----

1 SINGAPORE
----- End of picture text -----

WOTSO WORKSPACE LOCATIONS

==> picture [710 x 538] intentionally omitted <==

----- Start of picture text -----

SINGAPORE
NT
QLD
WA
SA
NSW
ACT
VIC
TAS
1
3
4
1
2
----- End of picture text -----

SINGAPORE 19 Cecil St, Singapore

AUSTRALIA

==> picture [12 x 114] intentionally omitted <==

New South Wales 50 Yeo St, Neutral Bay 55 Pyrmont Bridge Rd, Pyrmont 5 George St, North Strathfield 95b Station St, Penrith

Queensland

194 Varsity Pde, Varsity Lakes 30 Chancellor Village Blvd, Sippy Downs 84a Brunswick St, Fortitude Valley

Australian Capital Territory

490 Northbourne Ave, Dickson 14 Wormald St, Symonston

South Australia

217-219 Flinders St, Adelaide

==> picture [22 x 19] intentionally omitted <==

==> picture [166 x 19] intentionally omitted <==

==> picture [83 x 19] intentionally omitted <==

==> picture [83 x 19] intentionally omitted <==

==> picture [83 x 19] intentionally omitted <==

==> picture [83 x 19] intentionally omitted <==

==> picture [83 x 19] intentionally omitted <==

==> picture [83 x 19] intentionally omitted <==

==> picture [84 x 19] intentionally omitted <==

==> picture [81 x 19] intentionally omitted <==

==> picture [22 x 118] intentionally omitted <==

==> picture [166 x 118] intentionally omitted <==

==> picture [165 x 118] intentionally omitted <==

==> picture [165 x 60] intentionally omitted <==

==> picture [164 x 60] intentionally omitted <==

==> picture [206 x 207] intentionally omitted <==

==> picture [206 x 207] intentionally omitted <==

$8m placement and $4m rights issue under way.

Income portfolio has a WALE of 5 years and a weighted average passing yield of 9%.

55 Pyrmont Bridge Rd, Pyrmont, NSW

==> picture [433 x 169] intentionally omitted <==

==> picture [22 x 60] intentionally omitted <==

Growth Portfolio opportunities could grow NTA by 30c over the next 18 months.

==> picture [22 x 59] intentionally omitted <==

==> picture [22 x 60] intentionally omitted <==

==> picture [166 x 60] intentionally omitted <==

==> picture [165 x 60] intentionally omitted <==

490 Northbourne Ave, Dickson, ACT

==> picture [22 x 59] intentionally omitted <==

==> picture [166 x 59] intentionally omitted <==

==> picture [165 x 59] intentionally omitted <==

==> picture [165 x 59] intentionally omitted <==

==> picture [165 x 59] intentionally omitted <==

==> picture [164 x 59] intentionally omitted <==

==> picture [106 x 34] intentionally omitted <==

==> picture [172 x 34] intentionally omitted <==

==> picture [172 x 34] intentionally omitted <==

==> picture [173 x 34] intentionally omitted <==

==> picture [172 x 34] intentionally omitted <==

==> picture [52 x 34] intentionally omitted <==

==> picture [106 x 72] intentionally omitted <==

==> picture [52 x 72] intentionally omitted <==

PYRMONT BRIDGE ROAD - A CASE STUDY

NAB steps in as mortgagee in possession

2012

==> picture [106 x 71] intentionally omitted <==

==> picture [52 x 71] intentionally omitted <==

Fox Sports vacates, building now 50% vacant

Early 2013

BlackWall begins turnaround strategy as asset manager

Late 2013

==> picture [52 x 72] intentionally omitted <==

WOTSO WorkSpace opens in 500 sqm

Jan 2014

BlackWall and NAB agree terms of JV distressed debt transaction WOTSO expands by 500 sqm

June 2014

BlackWall structures wholesale investment Dec 2014 trust to invest $15 million in JV with NAB

Jan 2015

==> picture [106 x 71] intentionally omitted <==

900 sqm leased to a number of smaller tenants

Early 2015

June 2015

Child care operator takes 2,100 sqm

==> picture [106 x 142] intentionally omitted <==

Lobby and common area Late 2015 redesign commences

Early 2016 Data centre tenant takes 500 sqm BlackWall and NAB Sep 2016 agree buyout of NAB position Oct 2016 Building less than 10% vacant

IAG takes 1,600 sqm

IAG takes 1,600 sqm July 2016 BlackWall launches Rights Issue Oct 2016

==> picture [106 x 71] intentionally omitted <==

==> picture [52 x 76] intentionally omitted <==

==> picture [172 x 7] intentionally omitted <==