Approval of the construction of Arabella Country Estate Phase 2 at Arabella Hotel and Spa HOSPITALITY PROPERTY FUND LIMITED (Incorporated in the Republic of South Africa) (Registration number 2005/014211/06) Share code for A linked units: HPA ISIN for A linked units: ZAE000076790 Share code of B linked units: HPB ISIN for B linked units: ZAE000076808 (“Hospitality” or "the Company") APPROVAL OF THE CONSTRUCTION OF ARABELLA COUNTRY ESTATE PHASE 2 AT ARABELLA HOTEL AND SPA In the Interim Results announcement published on the Stock Exchange News Service of the JSE Limited on 25 February 2015, unitholders were advised that the Company was still awaiting a final decision on the approval of Phase 2 at Arabella Hotel & Spa by the Minister of Environmental Affairs and Development Planning. Unitholders are now advised that: 1. the Minister of Western Cape Local Government, Environmental Affairs and Development Planning (“the Minister”) has in terms of section 35(4) of the Environment Conservation Act, 1989 (Act No. 73 of 1989) and section 43 of the National Environmental Management Act, 1998 (Act No. 107 of 1998), granted Hospitality the approval to develop Phase 2 of Arabella Country Estate on Portion 1 and the Remainder of Portion 3 of Caledon Farm No. 542, Hermanus River, Kleinmond (“the Property”), subject to compliance with certain conditions and administrative processes; and 2. the Competent Authority for the Administration of the Land Use Planning Ordinance, 1985 (Ordinance 15 of 1985) (“LUPO”), has approved the rezoning and subdivision of the Property, which includes 352 Residential erven, a Private Nature Reserve and a 9-hole executive mashie golf course with associated infrastructure. Management and the Board will continue to explore the various options available to the Company, in order for it to realise a profit from Arabella Phase 2. A copy of the letter of approval as issued by the office of the Minister can be downloaded from Hospitality’s website on http://www.hpf.co.za/downloads/ABphase2.pdf 12 March 2015 Johannesburg Sponsor RAND MERCHANT BANK (a division of FirstRand Bank Limited) Date: 12/03/2015 08:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.