BURSTONE GROUP LIMITED - Voluntary Disclosure on Irongate Australia Industrial Fund Launch

Voluntary Disclosure on Irongate Australia Industrial Fund Launch

Burstone Group Limited
Approved as a REIT by the JSE
(Incorporated in the Republic of South Africa)
(Registration Number 2008/011366/06)
Share code: BTN       ISIN: ZAE000180915
("Burstone" or the "Group")

VOLUNTARY DISCLOSURE ON IRONGATE AUSTRALIA INDUSTRIAL FUND LAUNCH

Following the successful conclusion of a joint venture arrangement with the management team of the Irongate
funds management business in March 2023 (the "Irongate JV"), shareholders are advised that the Irongate JV
has concluded its first acquisition for A$57.25m of adjoining industrial properties located in Sydney's Smithfield,
New South Wales (the "Industrial Acquisition"), where vacancy rates are c. 0.2%. The Industrial Acquisition will
seed the new unlisted Australian Industrial Property Fund.

The Industrial Acquisition is supported by a co-investment from APAC-focused private equity real estate investment
group Phoenix Property Investors ("Phoenix") for 80% of the equity, with the Irongate JV providing the fund and
asset management. Phoenix is already an investor in one of the existing Irongate properties and this investment
will mark Phoenix's second in Australia in its Phoenix Pan Asia Core Plus Investments Fund.

Burstone will provide the 20% co-investment equity alongside Phoenix.

The Industrial Acquisition is consistent with Burstone's strategic objectives and presents attractive property
Fundamentals as follows:

-   It supports Burstone's capital light strategy which aims to leverage skills within the business to provide new
    sources of income through management and performance fees, in addition to capital returns and property
    yield, thereby enhancing the return on Burstone's deployment of capital ;
-   The Irongate JV continues to provide a strong platform for the Group to grow its fund management capabilities,
    which is a core strategic objective for Burstone over the medium to longer term;
-   In line with Irongate's investment philosophy, this transaction will focus on low-risk infill sites with large land
    holdings, acquisitions at below land-and-replacement cost and, underutilized, income-generating properties
    with strong positive rental reversion, all of which the Industrial Acquisition is set to deliver;
-   Furthermore, the Industrial Acquisition provides attractive property fundamentals, including:
          -   A combined land area of c.34,000m2, with a total net lettable area of c.17,500m 2 across eight
              buildings;
          -   The estate, with functional improvements focused on smaller users, is currently occupied by multiple
              tenants, and has a WALE of 1.7 years;
          -   The demand / supply imbalance across Western Sydney industrial supports the estate capturing
              positive ERV.

Sandton
22 November 2023

Financial Advisor and Sponsor to Burstone
Investec Bank Limited

Date: 22-11-2023 12:24:00
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