BLACKWALL LIMITED — Audit Report / Information 2011

Oct 17, 2011

Level 18, City Centre, 55 Market Street, Sydney NSW 2000 T+61 2 9283 1666 F+61 2 9283 1866 E admin@esvgroup.com.au www.esvaroup.com.au

6 October 2011

The Directors BlackWall Property Funds Limited Level 1, 50 Yeo Street Neutral Bay NSW 2089

Dear Sirs

BlackWall Property Funds Limited (Blackwall)

Review statement on Pro forma Balance Sheet

You have requested ESV Chartered Accountants ('ESV') prepare a Report on the Pro forma Balance Sheet of BlackWall, incorporating the Pro forma Adjustments, as included in the Replacement Short Form Prospectus dated 12 September ('Prospectus').

We disclaim any assumption of responsibility for any reliance on this Report or on the Pro forma Balance Sheet for any purpose other than for which it was prepared.

Report on Pro forma Balance Sheet

We have reviewed the attached Pro forma Balance Sheet of Blackwall as at 30 June 2011.

The Pro forma Balance Sheet has been prepared for inclusion in a replacement short form prospectus dated 12 September 2011.

Directors's Responsibility

Directors's are responsible for the preparation and presentation of the Pro forma Balance Sheet and have determined that the accounting policies and pro forma adjustments used are appropriate. This responsibility includes establishing and maintaining internal control relevant to the preparation of the Pro forma Balance Sheet so that it is free from material misstatement, whether due to fraud or error.

Our Responsibility

Our responsibility is to express a conclusion on the Pro forma Balance Sheet based on our review. We have conducted our review in accordance with Standard on Review Engagements ASRE 2405 in order to state whether, on the basis of the procedures described, anything has come to our attention that causes us to believe that the Schedule is not prepared, in all material respects, in accordance with the accounting policies and Pro forma adjustments used. No opinion is expressed as to whether the accounting policies and Pro forma adjustments used are appropriate. ASRE 2405 requires us to comply with the requirements of the applicable code of professional conduct of a professional accounting body.

A member of TIAG The International Accounting Group (TIAG) is a worldwide network of independent, quality accounting firms. Liability limited by a scheme approved under Professional Standards Legislation.

A review consists of making enguiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, which is not an audit, of the Pro forma Balance Sheet, nothing has come to our attention which causes us to believe that:

• the Pro forma Adjustments do not form a reasonable basis for the preparation of the Pro forma Balance $\bullet$ Sheet;
• the Pro forma Balance Sheet has not been properly prepared on the basis of the Pro forma $\blacksquare$ Adjustments; and
• the Pro forma Balance Sheet, in all material respects, is not presented fairly in accordance with the $\bullet$ recognition and measurement requirements but not all of the disclosure requirements of applicable Australian Accounting Standards, other mandatory professional reporting requirements and the Accounting Policies.

Dated at Sydney the 6th day of October 2011

ESV Chevelerd Accorded

ESV Chartered Accountants

Tim Valtwies Partner