CENTURIA OFFICE REIT — Capital/Financing Update 2017

Jun 28, 2017

ASX Announcement and Media Release

29 June 2017

Cedar Woods Properties Limited

ASX Code: CWP

• Cedar Woods has sold the Target Australia headquarters building, currently under construction at its Victorian development, Williams Landing.

• The property sold for $58.23 million (GST excl.), reflecting a strong yield of 6.49 percent.

• The purchaser is Centuria Property Funds Limited, the Responsible Entity for Centuria Metropolitan Property Trust.

For further information:

Nathan Blackburne Chief Operating Officer (03) 9820 1777

Media/Investor information

John Gardner Citadel-MAGNUS

(08) 6160 4901

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CEDAR WOODS SELLS TARGET HQ BUILDING AT WILLIAMS LANDING

Cedar Woods Properties Limited (ASX: CWP) (‘Cedar Woods’ or ‘the Company’) has signed an agreement to sell the Target Australia Pty Ltd (‘Target’) headquarters building, currently under construction at its master planned community in Victoria, Williams Landing, for $58.23 million (GST excl).

The purchaser, Centuria Property Funds Limited, the Responsible Entity for Centuria Metropolitan Property Trust, was successful in securing the asset following a sale campaign. The Centuria Metropolitan Property Trust is a subsidiary trust of the ASX-listed Centuria Metropolitan REIT, a major investor in Australian metropolitan property assets.

Under the terms of the sale, Cedar Woods will develop the Target headquarters building, with handover and settlement of the completed project expected in Q1 FY2019.

Target signed an agreement with Cedar Woods in December 2016 to build its new headquarters, committing to a 10-year lease for a 12,919 square metre office building, in a prominent positon adjacent to Williams Landing train station.

Cedar Woods’ Chief Operating Officer, Nathan Blackburne, said the sale result is evidence of the strength of Williams Landing’s commercial offering, as real estate investors seek locations outside of the CBD, with strong lease covenants and transport links.

“The sale reflects a yield of 6.49 percent, a strong result for the Company and consistent with our strategy of adding as much value as we can to our developments, before recycling capital into new opportunities,” Mr Blackburne said.

“With the train station, freeway interchange and retail amenity, Williams Landing is on the radar for commercial investors who are looking for new opportunities outside of the tightly held Melbourne CBD.

“Sophisticated property investors are looking for commercial opportunities where they can secure assets with long-term tenants and strong, fixed rental growth,” Mr Blackburne concluded.

Registered Office: Ground Floor, 50 Colin Street, West Perth, WA 6005 • PO Box 788, West Perth, WA 6872 • Tel: 08 9480 1500 Fax: 08 9480 1599 • Email: email@cedarwoods.com.au • www.cedarwoods.com.au

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The Target headquarters site is located at the gateway to the booming western corridor of Melbourne. Williams Landing is designated as a Priority Development Zone by the Victorian Government.

The sale follows a recent on-site event marking construction commencement of the Target headquarters, which was attended by Victorian Treasurer Tim Pallas and other local dignitaries.

This landmark office project is one of many commercial sites providing a development pipeline of more than 10 years at Williams Landing. Analysis prepared by property and planning economists, MacroPlan Dimasi, shows that Williams Landing has the potential to accommodate more than 13,000 jobs and become a major commercial centre servicing the western corridor of Melbourne.

ENDS

Registered Office: Ground Floor, 50 Colin Street, West Perth, WA 6005 • PO Box 788, West Perth, WA 6872 • Tel: 08 9480 1500 Fax: 08 9480 1599 • Email: email@cedarwoods.com.au • www.cedarwoods.com.au