BWP GROUP — Capital/Financing Update 2017

Jun 1, 2017

ASX ANNOUNCEMENT 2 June 2017

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FOLKESTONE ENTERS AGREEMENT TO ACQUIRE LAND FROM BWP TRUST AND ENTERS 4[TH] JOINT VENTURE WITH WILMAC PROPERTIES

Folkestone (ASX:FLK) is pleased to announce it has entered into agreements with BWP Trust to acquire 1.0 hectare of land and a new call option to acquire an adjoining further 2.4 hectares of land at 290-298 Millers Road, Altona North, to undertake Stage 3 of its successful Millers Junction project.

The 3.4 hectares of BWP Trust land will be amalgamated with approximately 2.2 hectares of Folkestone’s existing land holding to create Millers Junction Retail. Millers Junction Retail will be a 13,330 square metre neighbourhood and large format retail centre anchored by Woolworths. The masterplan has secured unanimous support from Hobson Bay Council and is now subject to final approval before the Victorian Government’s Planning Panels Victoria hearing in July 2017.

The circa $70 million development will sit directly opposite Folkestone's recently completed Millers Junction Home development, which includes a 16,885 square metre Bunnings, Officeworks, and JB HI-FI Home. The Folkestone fund, which owns Millers Junction Home, was recently ranked the 5th best performing core fund in the Property Council/IPD Unlisted Core Retail Property Fund Index at 30 April 2017.

Folkestone is also pleased to announce that it has entered into its fourth joint venture with Wilmac Properties ("Wilmac") to expand its exposure to enterprise park developments. Folkestone and Wilmac will develop a further 2.2 hectares of Folkestone’s land at Altona North into 76 office/warehouse mews with an end value of circa $28 million (“Millers Junction Business 2”). Millers Junction Business 2 is immediately adjacent to the proposed Millers Junction Retail and directly opposite Folkestone and Wilmac’s first enterprise park development, Millers Junction Business, which comprises 71 office/warehouse mews. The expansion of the enterprise park at Millers Junction follows the success of Millers Junction Business which is on track to be completed later this month, some 18 months ahead of schedule. Construction of Miller Junction Business 2 is expected to commence in early 2018.

Folkestone’s Head of Real Estate Ben Dodwell said "We are pleased to have reached agreement with BWP Trust and Woolworths Supermarkets to enable us to deliver Millers Junction Retail. This, together with Millers Junction Business 2, will deliver the final stage of the Millers Junction masterplan and demonstrates our ability to use our balance sheet to secure and develop investment grade real estate across multiple sectors. This has enabled us to grow our retail development pipeline, which now includes two neighbourhood centres, and has a combined end value of circa $105 million and our enterprise park pipeline which has a combined end value of circa $160 million.”

For further information

GREG PARAMOR AO Managing Director Ph: 02 8667 2800

BEN DODWELL Head of Real Estate Ph: 02 8667 2884

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Sydney Office Level 10, 60 Carrington Street Sydney NSW 2000 t: +61 2 8667 2800 f: +61 2 8667 2880

Melbourne Office Level 14, 357 Collins Street Melbourne Vic 3000 t: +61 3 9046 9900 f: +61 3 9046 9999

Folkestone Limited ABN 21 004 715 226

e: office@folkestone.com.au www.folkestone.com.au

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About Folkestone

Folkestone (ASX:FLK) is an ASX listed real estate funds manager and developer providing real estate wealth solutions. Folkestone’s funds management platform, with $1.2 billion under management, offers listed and unlisted real estate funds to private clients and select institutional investors, while its on balance sheet activities focus on value ‐ add and opportunistic (development) real estate investments. www.folkestone.com.au

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