GDI PROPERTY GROUP — Capital/Financing Update 2024

Apr 11, 2024

ASX ANNOUNCEMENT

12 April 2024

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CO-LIVING JOINT VENTURE – ACQUISITION OF SEASONS HOTEL, NEWMAN

GDI[1] is pleased to advise that the Resource Accommodation Management Co-living Joint Venture[2] (RAM Co-living JV) has exchanged contracts to acquire the Seasons Hotel in Newman, WA, for $6.45 million.

The Seasons Hotel in Newman (Seasons) comprises 87 motel rooms, 11 staff rooms, dining capacity for up to 90 patrons, a bar, a large reception area and large office area for site management. Seasons is located in the heart of Newman, backing onto the main shopping centre, with other retail amenity, coffee shops, bars and a gym within easy walking distance. The large site area of approximately 29,000sqm allows for potential expansion of up to a further 80 rooms[3] .

The acquisition price of $6.45 million is within the RAM Co-living JV’s acquisition metrics. Upon settlement, the RAM Co-living JV intends to leverage the successful strategies undertaken at South Hedland and immediately pivot the offering to the resource sector, for example, by increasing the hours of operation of the kitchen to better suit mining sector employees. With a number of new or expansion mining projects announced within the Newman catchment, we anticipate this strategy will lead to higher occupancy and consequentially, earnings, and exceed the 20% return hurdle.

The RAM Co-living JV intends to fund the acquisition through a combination of cash reserves and a new debt facility to be secured against the two existing villages at Norseman and South Hedland[4] . Settlement is anticipated to occur on the later of 30 days after exchange, or two days after the transfer of the liquor licence.

Media Enquiries: Stephen Burns Managing Director & Chief Executive Officer +61 2 9223 4222

David Williams Chief Financial Officer +61 2 9223 4222

stephen@gdi.com.au

david@gdi.com.au

Authorised for release by David Williams, Company Secretary

1. GDI comprises the stapled entities GDI Property Group Limited (ACN 166 479 189) and GDI Property Trust (ARSN 166 598 161).

2. RAM Newman Pty Limited, a wholly owned subsidiary of RAM Operations Pty Limited, has exchanged a contract to acquire the business for $750,000, and Seasons Newman Pty Limited atf RAM Newman Trust has exchanged a contract to acquire the property for $5.70 million. RAM Newman Trust is wholly owned by Co-living Accommodation Trust 1.

3. Subject to council approval.

4. The RAM Co-living JV has been provided with an indicative term sheet for this facility.

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