REGION GROUP — Capital/Financing Update 2014

Dec 16, 2014

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Level 5, 50 Pitt Street Sydney NSW 2000 Tel: (02) 8243 4900 Fax: (02) 8243 4999 www.scaproperty.com.au

17 December 2014

ASX ANNOUNCEMENT

December 2014 Property Valuations

SCA Property Group (ASX: SCP) (“SCP”) is pleased to announce the results of its property valuations as at December 2014.

Fifteen of SCP’s completed properties were independently valued in Australia and New Zealand. In addition two of the properties acquired (The Markets and Prospect Vale) after June 2014 were also independently valued. The remaining 61 completed properties were internally valued.

Overall, the total portfolio capitalisation rate improved by 22bps to 7.61% at December 2014 (from 7.83% at June 2014), and the total value of investment properties increased by $176.9m to $1,794.4m. The components of this increase were:

• Australian completed properties valuation increased by $41.1m;

• New Zealand completed properties valuation increased by $1.6m (NZ$1.7m); and

• Acquisitions completed during the period added $134.2m (including a $4.1m increase in the value of Claremont, and a $4.2m increase in the value of Greystanes).

The solid progress we have made during the period on reducing our specialty vacancy supports these valuation increases.

For financial reporting purposes the impact of these valuation increases on net tangible assets will be reduced by stamp duty paid on the acquisitions during the half year, the value of improvements made to the properties, lessor works and tenant incentives, and straight-lining.

Summary of 31 December 2014 valuations

Investment Property Portfolio Valuation	Australia	New Zealand (NZ$m)	Total~~1~~
June 2014 Portfolio Valuation	1,406.7	226.4	1,617.5
- Add: Acquisitions and DMA~~2~~completed during the period at cost (A$m)	124.9	-	124.9
- Add: Acquisition/DMA valuation increase (A$m)	9.3	-	9.3
- Add: Valuation increase‘like for like’(A$m)	41.1	1.7	42.7
**December 2014 Portfolio Valuation **	1,582.0	228.1	1,794.4
**Valuation Weighted Average Capitalisation Rates: **
- December 2014 % rate	7.60%	7.67%	7.61%
- June 2014 % rate	7.86%	7.68%	7.83%

Shopping Centres Australasia Property Group RE Limited ABN 47 158 809 851 AFS Licence 426603 as responsible entity of the Shopping Centres Australasia Property Retail Trust ARSN 160612788 and as responsible entity of the Shopping Centres Australasia Property Management Trust ARSN 160612626

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Details of portfolio movements are:

Independent vs Internal Valuations	Australia	New Zealand (NZ$m)	Total
**Independent Values: **
- Number	11	4	15
- % of portfolio by book value	15.2%	26.4%	16.6%
- Change in Valuation($’m)~~1~~	4.5	0.4	4.9
**Internal Values: **
- Number	49	10	59
- % of portfolio by book value	76.3%	73.6%	76.0%
- Change in Valuation($’m)~~1~~	36.6	1.3	37.9
Acquisitions and Completed DMA~~2~~:
- Number	4	-	4
- % of portfolio by book value	8.5%	-	7.5%
- Cost of Acquisitions and completed development properties ($’m)	124.9	-	124.9
- Valuation gain on Acquisitions and completed development properties ($’m)1	9.3	-	9.3
- Valuation($’m)~~1~~	134.2	-	134.2
Total:
- Number of completed properties	64	14	78
- Change in Valuation($’m)~~1~~	175.3	1.7	176.9

During the half year SCP made the final DMA[2] payment on Greystanes and completed three other property acquisitions. Details of these properties are:

• Claremont (TAS): SCP agreed to acquire Claremont on a deferred settlement basis as part of the November 2013 Tasmanian portfolio acquisition. No amount was due by SCP until completion of the development works being undertaken by the vendor. Claremont settled in September 2014 and is complete. The cost of Claremont was $27.9m (before transaction costs). Claremont has been valued at December 2014 at $32.0m.

• Prospect Vale (TAS) : SCP acquired Prospect Vale in late August 2014 for $26.8m (before transaction costs). Prospect Vale is a neighbourhood centre near Launceston in Tasmania. Prospect Vale has been valued at December 2014 at $26.8m.

• The Markets (QLD) : SCP acquired The Markets Shopping Centre in South Brisbane Queensland in October 2014 for $32.0m (before transaction costs). The Markets is a neighbourhood shopping centre located 2km from Brisbane GPO. The Markets has been valued at December 2014 at $32.0m.

• Greystanes (NSW): Greystanes was acquired by SCP in December 2012 as part of the IPO and was the final property subject to a DMA[2] . Woolworths commenced trading in the newly developed premises in October 2014. The total price paid for Greystanes was $38.2m (before transaction costs). Greystanes has been valued at December 2014 at $43.4m.

1 NZD property values converted at 30 June 2014 FX rate of AUD 1.00 = NZD 1.073647 to allow like for like comparison. Final FX rate used will be as at 31 December 2014.

2 At listing SCP acquired 13 properties which were subject to Development Management Agreements (DMA’s) under which Woolworths Limited was responsible for the completion of their development. For the properties subject to a DMA SCP paid an initial payment to purchase the property and a second and final payment was due on completion. Greystanes was completed in October 2014 and was the last remaining property to be completed subject to a DMA. The initial payment for Greystanes was $21.8m and the final payment of $16.4m was paid in October 2014.

Shopping Centres Australasia Property Group RE Limited ABN 47 158 809 851 AFS Licence 426603 as responsible entity of the Shopping Centres Australasia Property Retail Trust ARSN 160612788 and as responsible entity of the Shopping Centres Australasia Property Management Trust ARSN 160612626

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ENDS

Media, Institutional investor and analyst, contact:

Mark Fleming CFO SCA Property Group (02) 8243 4900

Shopping Centres Australasia Property Group RE Limited ABN 47 158 809 851 AFS Licence 426603 as responsible entity of the Shopping Centres Australasia Property Retail Trust ARSN 160612788 and as responsible entity of the Shopping Centres Australasia Property Management Trust ARSN 160612626

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