REGION GROUP — Capital/Financing Update 2016

Dec 13, 2016

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

14 December 2016

ASX ANNOUNCEMENT

December 2016 Property Valuations

SCA Property Group (ASX: SCP) (“SCP”) announces the results of its property valuations as at December 2016.

Seventeen of the properties from June 2016 were independently valued. In addition the five properties acquired after June 2016 were also independently valued at the time of acquisition. The remaining 52 properties were internally valued.

Overall the total portfolio capitalisation rate improved by 51 bps to 6.62% at December 2016 (from 7.13% at June 2016), and the total value of investment properties increased by $313.4m to $2,201.4m. The components of this increase were:

• Like-for-like properties valuation increased by $169.1m; and

• Acquisitions completed during the period added $144.3m, being Muswellbrook Fair ($29.3m), Belmont Central ($28.5m), Jimboomba Junction ($27.5m), Lillybrook ($25.5m) and Annandale Central ($33.5m).

**Investment Property Portfolio Valuation **	**A$m **
**June 2016 Portfolio Valuation **	1,888.0
- Add: Acquisitions & disposals completed during the period at cost	144.3
- Add: Acquisitions & disposals valuation increase	0.0
- Add: Valuation increase‘like for like’	169.1
**December 2016 Portfolio Valuation **	2,201.4
**Valuation Weighted Average Capitalisation Rates: **
- June 2016 % rate	7.13%
- December 2016 % rate	6.62%

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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

Details of portfolio movements, including a comparison of independent and internal valuations, are set out in the table below:

Independent vs. Internal Valuations	A$m
**Independent Values: **
- Number	17
- % ofportfolio by book value	27.8%
- Change in Valuation ($m)	62.7
- Change in WACR	-0.60%
**Internal Values: **
- Number	52
- % ofportfolio by book value	65.6%
- Change in Valuation ($m)	106.4
- Change in WACR	-0.50%
**Acquisitions and Disposals: **
- Numberof AcquiredProperties	5
- Numberof DisposedProperties	0
- % of portfolio by book value	6.6%
- Cost of Acquisitions ($m)	144.3
- Consideration for Disposals ($m)	0.0
- Valuation gain/loss on Acquisitions and Disposals ($m)	0.0
- Valuation ($m)	144.3
- Changein WACR	0.00%
Total:
- Number of Properties	74
- Change in Valuation ($m)	313.4
- Change in WACR	-0.51%

Our Mount Gambier Masters store was independently valued by CBRE in December 2015 at $20.25m based on the existing lease to Masters Home Improvement Australia Pty Ltd. Discussions in relation to this store are continuing, but at present there is uncertainty as to the final outcome of those discussions. As such, pending such resolution, we have held this valuation constant.

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 straightlining.

ENDS

Institutional investor, analyst and media contacts:

Mark Fleming Chief Financial Officer SCA Property Group (02) 8243 4900

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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