Distribution update, announcement of distribution re-investment price and confirmation of finalisation information INVESTEC AUSTRALIA PROPERTY FUND Incorporated and registered in Australia in terms of ASIC (ARSN 162 067 736) Registered in terms of the Collective Investment Schemes Control Act No.45 of 2003 Operated by Investec Property Limited (ACN 071 514 246; AFSL 290 909) (“Responsible Entity”) Share code: IAP ISIN: AU60INL00018 (“IAPF” or the “Fund”) DISTRIBUTION UPDATE, ANNOUNCEMENT OF DISTRIBUTION RE-INVESTMENT PRICE AND CONFIRMATION OF FINALISATION INFORMATION Introduction Unitholders are referred to the announcement relating to the reviewed interim condensed consolidated financial results for the six months ended 30 September 2016 released on SENS on Wednesday, 16 November 2016 (“Results Announcement”) containing details of the interim distribution declaration number 6. As required by the Listing Requirements of the JSE Limited, the Fund has entered into a forward exchange contract to convert the AUD distribution to ZAR such that the locked in exchange rate is communicated to unitholders at least one week before the last day to trade in relation to the final distribution. Accordingly, unitholders are advised that this distribution has been converted from AUD to ZAR at an exchange rate of AUD 1.00000 : ZAR 10.28500. The resulting distribution is 49.48494 ZAR cents per unit (pre withholding tax paid in Australia) and 47.73927 ZAR cents per unit (post withholding tax paid in Australia). Furthermore, unitholders will be entitled to re-invest the cash distribution (post withholding tax paid in Australia) of 47.73927 ZAR cents per unit (“Cash Distribution”) in return for units (“Re-Investment Alternative Units”), as declared in the Results Announcement. Re-Investment Price The unit price applicable to unitholders electing to receive Re-Investment Alternative Units and recorded in the register on Friday, 9 December 2016 (“Record Date”), is ZAR 14.00 (“Re-Investment Price”). The Re-Investment Price represents a discount of 2.1% to the closing clean price of ZAR 14.30 on Monday, 28 November 2016 and a discount of 2.4% to the five-day volume weighted average traded price of ZAR 14.35 on Monday, 28 November 2016. Tax implications The Fund and its management arrangements are structured to meet the required criteria to be classified as a Managed Investment Trust for Australian tax purposes. As a Managed Investment Trust, the Responsible Entity will be required to withhold tax in Australia at a concessional rate of 15% on distributions to individual and institutional Unitholders resident in South Africa. However, the effect of this tax on the Fund’s distribution for the period from 1 April 2016 to 30 September 2016 has been reduced to 3.57348%, equivalent to 0.16973 Australian cents per Unit, through certain deductions such as depreciation. The distributions, net of Australian withholding tax, received by South African institutional and individual unitholders will constitute income and will be subject to income tax in South Africa at the unitholder’s marginal tax rate. Tax paying unitholders will be able to claim a rebate against the withholding tax paid in Australia. Non-tax paying unitholders will not be entitled to claim a rebate. The above summary of the tax treatment of the foreign distribution does not constitute legal or tax advice and is based on taxation law and practice at the date of this circular. Unitholders should take their own tax advice as to the consequences of their investment in the Fund and are encouraged to consult their professional advisors should they be in any doubt as to the appropriate action to take. The impact of the withholding tax on unitholders has been illustrated by way of the example below: Distribution per unit pre-withholding tax (AUD cents) 4.81137 Less: Australian withholding tax (AUD cents) 0.16973 Distribution per unit post-withholding tax (AUD cents) 4.64164 AUD / ZAR exchange rate 10.28500 Distribution per unit post-withholding tax (ZAR cents) 47.73927 Re-Investment Price (ZAR) 14.00000 New units issued per 100 units 3.40995 Due to the fact that the Cash Distribution or election to receive Re-Investment Alternative Units may have tax implications for unitholders, unitholders are encouraged to consult their professional advisors should they be in any doubt as to the appropriate action to take. In terms of the Listings Requirements of the JSE Limited, the following additional information is disclosed: - The Cash Distribution portion has been declared from the Fund’s reserves. - As at the date of this announcement, the Fund has 322,359,497 ordinary units of no par value each in issue. Trading of IAPF units As published in the Results Announcement, unitholders electing to receive Re-Investment Alternative Units are requested to note that the Re-Investment Alternative Units will be listed on LDT + 3 and these can only be traded on LDT + 3 as the settlement of the Re-Investment Alternative Units will occur three days after record date, which differs from the conventional one day after record date settlement process. Units may not be dematerialised or rematerialised between commencement of trade on Wednesday, 7 December 2016 and close of trade on Friday, 9 December 2016. Johannesburg 29 November 2016 Investment Bank and Sponsor Investec Bank Limited Date: 29/11/2016 08:37:00 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.