GROWTHPOINT PROPERTIES AUSTRALIA — Capital/Financing Update 2012

Dec 23, 2012

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ASX ANNOUNCEMENT GROWTHPOINT PROPERTIES AUSTRALIA (ASX Code: GOZ)

24 December 2012

Significant transactions enhance quality of Growthpoint’s property portfolio

Growthpoint Properties Australia ( “Growthpoint” ) is pleased to announce it has exchanged contracts to acquire a substantial prime industrial property portfolio comprising 3 adjoining properties located at Erskine Park for $104.7 million.

The total net property income of the property portfolio is estimated at approximately $8.45 million per annum, providing an initial yield of 8.07% (before acquisition costs). The three properties are to be leased to Linfox for a weighted average lease term of 10.0 years and comprise its New South Wales head office.

The vendor is companies associated with Linfox and the selling agent was Colliers International.

The properties are summarised below:

Use	Pharmaceutical Warehouse	Truck Facility	Warehouse	Total
Status	To be constructed	Existing building	Existing building
Address	27-49 Lenore Drive	51-65 Lenore Drive	6-7 John Morphett Place
Building area (GLA) m2	29,055	3,720	24,881	57,656
	71,410	41,790	82,280	195,480
Site area m2
Contruction completed	2013	2012	2008
Lease commencement (approx)	At practical completion	At settlement	At settlement
	10.0	15.0	7.0	10.0
Lease term(years)
Options	10 + 10years	5 + 5years	5 + 5years
Annual rent reviews	CPI	CPI	CPI
Outgoings	Fully paid bylessee	Fully paid bylessee	Fully paid bylessee

Growthpoint Properties Australia Trust ARSN 120 121 002 Growthpoint Properties Australia Limited ABN 33 124 093 901 AFSL 316409

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a) Pharmaceutical warehouse

27-49 Lenore Drive, Erskine Park, New South Wales will comprise a new, state of the art, warehouse designed specifically to house pharmaceutical products. Growthpoint will purchase the land of 71,140 m2 from Linfox for $19.6 million and has entered a Delivery Agreement with Linfox Property Development (LPD) whereby LPD will develop the warehouse with practical completion forecast for late August 2013. Growthpoint will pay a development fee of $26.65 million to LPD upon practical completion of the warehouse. Growthpoint will receive an 8.5% per annum return on its outlay for the land during the development period. This property has a 10 year lease from practical completion.

b) Truck Facility

Completed in 2011, 51-65 Lenore Drive, Erskine Park, New South Wales comprises offices, a truck workshop and wash-bay as well as an extensive hardstand area for the parking and refuelling of a fleet of trucks. The total gross building area of the improvements is 3,720 square metres on a site totalling 41,790 square metres. This property has a 15 year lease from settlement.

c) Existing Warehouse

Completed in 2008, 6-7 John Morphett Place, Erskine Park, New South Wales comprises the New South Wales headquarters of Linfox comprising a 2 level corporate office and a large modern warehouse, totalling 24,881 square metres. The land area is 82,280 square metres. This property has a 7 year lease from settlement.

Completion is subject to a number of conditions, including agreement of guarantors for the development of the pharmaceutical warehouse.

Funding of the acquisitions Linfox Property Portfolio, Erskine Park

The acquisition of the Linfox Property Portfolio at Erskine Park will be funded by the sale of the Coles Distribution Centre, Goulburn (announced to the ASX on 24 December 2012), undrawn debt within the Group’s existing syndicated debt facility and proceeds from the Distribution Reinvestment Plan ( “DRP” ) for the distribution for the half year ended 31 December 2012. As previously advised to the market, Growthpoint’s major securityholder, Growthpoint Properties Limited of South Africa, has elected to take up all of its distribution for the half year ending 31 December 2012 as new GOZ securities under the DRP. Accordingly, the DRP is expected to raise a minimum of approximately $22.9 million (subject to the final issue price).

Financial impact of transactions

Post the above transactions (including the sale of the Goulburn property) and receipt of the minimum proceeds under the DRP:

• Earnings per security guidance – 19.0 to 19.4 cents per stapled security for FY 2013. Down marginally as the Goulburn property had a high income yield relative to the Linfox properties

• Distribution per security – 18.3 cents per security for FY 2013. Unchanged from prior guidance and 4% above FY 2012

• Pro-forma 30 June 2012 gearing will be approximately 50.5%

• Pro-forma 30 June 2012, the NTA per stapled security is $1.94.

Transaction rationale

Commenting on the sale and purchase, Timothy Collyer, Managing Director stated –

“Growthpoint has chosen to sell its regionally based Goulburn property and reinvest into a modern industrial portfolio in Erskine Park; a prime suburban Sydney industrial location. The Goulburn property was purchased in December 2009 for a total price of $65.5 million and since that time Growthpoint has enjoyed a high rental yield plus capital appreciation, deriving an internal rate of return of approximately 10.4% per annum.

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We are very pleased to be able to purchase the Linfox portfolio as it complements our existing property portfolio well. The 8.07% yield is attractive versus other prime industrial investment opportunities and in the context of very low domestic interest rates and long term bond rates. Comprising two modern distribution centres (one to be constructed) and an extensive Truck facility, the improvements are very modern with low capital expenditure requirements. The large combined site of 19.5 hectares occupies a prominent position in Erskine Park, with excellent access to the M4/M7 Motorways. The Group will derive a long term (10 year WALE), growing (to the CPI) and secure rental income from tenant Linfox, Australia’s largest privately owned logistics company. Growthpoint has developed a relationship with Linfox through the sale process and we look forward to completing future transactions together.”

Readers of this ASX announcement should refer to the “Important note” which appears at the end of this announcement.

Ends

Timothy Collyer, Managing Director

Media and investor enquiries should be directed to:

Aaron Hockly, Company Secretary/General Counsel Growthpoint Properties Australia Telephone: +61 8681 2900 info@growthpoint.com.au

Growthpoint Properties Australia

Growthpoint Properties Australia is a publicly traded ASX listed A-REIT (ASX Code: GOZ), that specialises in the ownership and management of quality investment property. Following completion of the property acquisitions and disposals referred to in this announcement, Growthpoint will own a diversified portfolio of 43 office and industrial investment properties throughout Australia valued at over $1.6 billion. Growthpoint has an investment mandate to invest in office, industrial and retail property sectors.

Growthpoint aims to grow its portfolio over time and diversify its property investment by asset class, geography and tenant exposure through individual property acquisitions, portfolio transactions and corporate activity (M&A transactions) as opportunities arise.

www.growthpoint.com.au

Important note

This announcement contains certain “forward-looking statements”. The words “anticipate”, “believe”, “expect”, “project”, “predict”, ”forecast”, “estimate”, “likely”, “intend”, “should”, “could”, “may”, “target”, “plan” and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Such forward looking statements, opinions and estimates provided in this announcement are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forwardlooking statements, opinions and estimates are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of Growthpoint Properties Australia that may cause actual results to differ materially from those expressed or implied in such statements. There can be no assurance that actual outcomes will not differ materially from these statements and neither Growthpoint Properties Australia, nor any of its directors, employees, servants, advisers or agents assume any obligation to update such information. Forward-looking statements including projections, guidance on future earnings and estimates are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. This announcement contains such statements that are subject to risk factors associated with the industries in which Growthpoint Properties Australia operates.

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