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BLACKWALL LIMITED Capital/Financing Update 2019

May 23, 2019

64590_rns_2019-05-23_6e6f16da-8d2b-427a-9dc6-ae21a51949f4.pdf

Capital/Financing Update

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ASX Release

24 May 2019

BWR update: transactions approved at General Meeting

BlackWall today announces completion of the majority of the transactions contemplated and approved at the meetings of BlackWall Limited shareholders and BlackWall Property Trust unitholders on 10 May 2019. The transactions completed follow settlement of the sale of the Bakehouse Quarter on 18 April 2019.

Attached to this release is a preliminary BWR balance sheet (subject to audit and tax accounting in the normal course at the year end) showing the position today following completion of all transactions. A pro forma balance sheet was included in the Notice of Meeting released on 8 April 2019 giving the anticipated outcome based on a number of assumptions. In particular, that balance sheet showed the capital derived from the transaction as cash on deposit. In order to enhance returns and now that completion has occurred, the directors resolved to repay a significant amount of BWR’s debt and invest in a number of low risk first mortgage positions. The key elements of the balance sheet are as follows:

Gross Assets - $314 million
Debt - $57 million

Preliminary Balance Sheet Summary

Preliminary Balance Sheet Summary
Cash and Equivalents	$19,000,000
Properties Other Assets	$274,000,000 $21,000,000
Total Assets Borrowings Net Assets Minority Interests Net Assets Attributable to Unitholders	$314,000,000 $57,000,000 $257,000,000 $37,000,000 $220,000,000

Gearing 18%
Net Assets - $220 million (excluding minorities)
Units on issue - 148.5 million
NTA per unit $1.48
Cash and equivalents $19 million

BWR is now a significantly bigger trust and has grown its unit holders by roughly 400 investors. In addition to the $19 million in cash, BWR can use its lightly geared balance sheet to fund opportunities. To this end the trust has the capacity for real estate purchases of $170 million without increasing gearing above 40%.