25 July 2017

Convenience Retail REIT IPO Successfully Completed

As announced earlier today, unitholders in the APN Property Plus Portfolio (PPP) today voted to overwhelmingly approve the resolutions to enable the formation of Convenience Retail REIT.

The Institutional Offer Bookbuild and the Cash Out Facility Offer Bookbuild have been successfully completed. The price established under the Cash Out Facility Offer Bookbuild was $3.00 per Convenience Retail REIT stapled security.

Convenience Retail REIT is due to commence trading on a conditional and deferred settlement basis under the ASX code CRR on 27 July 2017. APN and funds managed by APN Funds Management will own approximately 15.4% of Convenience Retail REIT on listing.

At listing Convenience Retail REIT will own a quality portfolio of 66 strategically located service station and convenience retail assets independently valued at $308 million with a weighted average capitalisation rate of 7.2%. The portfolio has occupancy of 99.4% and a weighted average lease expiry of 13.6 years. The REIT will have a forecast distribution yield of 6.50% annualised from Allotment to 30 June 2018, growing to 6.75% for FY19.

Mr Tim Slattery, CEO of APN Property Group said: "We are delighted with the market's reception of Convenience Retail REIT. In line with APN's 'property for income' investment philosophy, the new REIT provides investors with a defensive cash flow profile and also significant growth potential through the partnership with Puma Energy and other opportunities in the non-discretionary retail property sector."

Mr Chris Brockett, Fund Manager of Convenience Retail REIT said: "We are pleased by the strong investor response to Convenience Retail REIT. The fund will own a well-diversified, national portfolio of convenience retail property with long term leases to high quality, experienced tenants. We now look forward to the journey of delivering on the fund's income objectives and its growth strategy, including through targeted acquisitions both with Puma Energy and other parties."

Merrill Lynch Equities (Australia) Limited and UBS AG, Australia Branch acted as Joint Lead Managers and Bookrunners. Gilbert + Tobin acted as legal adviser.

ENDS

For further information, please contact:

Tim Slattery Chris Brockett

CEO Fund Manager, Convenience Retail REIT

T +613 8656 1000 T +613 8656 1000

About APN Property Group

APN Property Group Limited (ASX code: APD) is a specialist real estate investment manager. Since 1996, APN has been actively investing in, developing and managing real estate and real estate securities on behalf of institutional and retail investors. APN's focus is on delivering superior investment performance and outstanding service. Performance is underpinned by a highly disciplined investment approach and a deep understanding of commercial real estate.

www.apngroup.com.au

APN Property Group Limited

ABN 30 109 846 068 ASX Code: APD

Level 30, 101 Collins Street

Melbourne, Victoria 3000 Australia

T +61 (0) 3 8656 1000 F +61 (0) 3 8656 1010

Wwww.apngroup.com.au

Eapnpg@apngroup.com.au

APN Property Group Limited published this content on 25 July 2017 and is solely responsible for the information contained herein.
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