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INVESTEC AUSTRALIA PROPERTY FUND - Abridged report for the year ended 31 March 2019

Release Date: 03/05/2019 07:05
Code(s): IAP     PDF:  
 
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Abridged report for the year ended 31 March 2019

Investec Australia Property Fund
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
Share code: IAP
ISIN: AU60INL00018

ABRIDGED REPORT FOR THE YEAR ENDED 31 MARCH 2019

DIRECTORS' RESPONSIBILITY STATEMENT

The directors of IPL are responsible for the preparation and fair
presentation of the consolidated annual financial statements of
IAPF (also referred to as the Fund or Group).
 
The consolidated annual financial statements comprise the:
- Consolidated statement of profit or loss and other
  comprehensive income for the year ended 31 March 2019
- Consolidated statement of financial position at 31 March 2019
- Consolidated statement of changes in equity for the year ended
  31 March 2019
- Consolidated statement of cash flows for the year ended 31
  March 2019
- Notes to the financial statements, which include a summary of
  significant accounting policies and other explanatory notes
- Directors' report

in accordance with IFRS, the constitution of the Fund, the JSE
Listings Requirements and the requirements of the Act.

The directors of IPL are also responsible for such internal controls
as they determine necessary to enable the preparation of financial
statements that are free from material misstatement, whether due
to fraud or error, and for maintaining adequate accounting records
and an effective system of risk management.

The directors of IPL have made an assessment of the ability of
the Fund to continue as a going concern and have no reason to
believe that the business will not be a going concern in the year
ahead.

The external auditor is responsible for reporting on whether the
annual financial statements are fairly presented in accordance with
the applicable financial reporting framework.

Approval of the Fund's consolidated annual financial statements
The consolidated annual financial statements of the Fund, as
identified in the first paragraph, were approved under authority of
the board of IPL on 3 May 2019 and are signed on their behalf by:


RA Longes                            GA Katz
Chairman                             Chief executive officer

Dated at Sydney                      Dated at Sydney
3 May 2019                           3 May 2019


REPORT OF THE AUDIT AND RISK COMMITTEE

The audit and risk committee has pleasure in submitting this report
to unitholders as recommended by King IV.

The activities of the audit and risk committee (the
committee), which comprises three independent non-
executive directors, are determined by its charter and
mandate as set out on page 29.

The committee is satisfied that it has considered and discharged
its responsibilities in terms of its mandate and charter, King IV and
the Act.

As the Fund is a registered managed investment scheme under the
Act it has Australian reporting obligations. The Fund is required to
lodge audited financial statements with the ASIC. This is in addition
to the Fund's reporting obligations in South Africa. The committee
is satisfied that the Fund has discharged all of its reporting
obligations in Australia and South Africa.

The committee carried out its duties by inter alia, reviewing the
following:
- financial management reports;
- external audit reports;
- management's risk assessment; and
- compliance reports.

Significant matters the committee has considered this year in
relation to the financial statements are:
- audit quality;
- audit independence;
- valuation of investment properties;
- related party transactions;
- borrowing classifications, derivatives and debt covenants; and
- going concern.

The abovementioned information, together with interaction with
the external and internal auditors, management and other invitees
attending meetings in an ex officio capacity, enabled the committee
to conclude that the risk management process and systems of
internal financial control have been designed and were operating
effectively during the financial period.

The committee is satisfied:
- its members have the requisite financial skills and experience to
  contribute to its deliberations;

- with the independence and effectiveness of the external auditor,
  including the provision on non-audit services and compliance
  with the Fund's policy in this regard;

- IPL as RE of the Fund has complied with the JSE Listings
  Requirements and the principles of King IV applicable to the
  Fund;

- it considered and approved that audit fee payable to the
  external auditors in respect of the audit for the year ended 31
  March 2019 as well as their terms of engagement and scope of
  the audit;

- that the appointment of the external auditor is in compliance
  with the Act and the JSE Listings Requirements;

- with the effectiveness of the internal audit function and that the
  system of internal financial control in all key material aspects is
  effective and provides reasonable assurance that the financial
  records may be relied upon for the preparation of the annual
  financial statements; and

- with the expertise and experience of the chief financial officer
  and the overall adequacy and appropriateness of the finance
  function.

The committee, having fulfilled the oversight role regarding the
reporting process and the integrated report, recommends for
approval by the board of directors of IPL, the integrated report and
the annual financial statements for the year ended 31 March 2019.

Sally Herman
Chairperson
Audit and risk committee

Sydney
3 May 2019

DIRECTORS' REPORT

The directors of IPL, the RE of the Fund, present their report together
with the consolidated financial statements of the Group comprising
the Fund and its controlled entities, for the year ended 31 March 2019
and the auditor's report thereon.

The Fund is an Australian-domiciled REIT which is registered as
a managed investment scheme in Australia under the Act and is
subject to regulatory oversight by ASIC.

The Fund was listed on the JSE on 23 October 2013 under the
'Real Estate Holdings and Development' sector of the JSE under
share code: IAP and ISIN: AU60INL0018.

Perpetual Corporate Trust Limited is the custodian of the Fund.

Issued unit capital
The unit capital of the Fund is 478 802 454 ordinary units. The
Fund's ordinary units are listed on the JSE. Details of the unit
capital are set out in note 13 to the financial statements.

Responsible entity
The registered office and principal place of business of IPL and the
Fund is Level 23, Chifley Tower, 2 Chifley Square, Sydney, NSW
2000.

The directors of IPL during or since the end of the financial period
are set out in the table below:

Full name                             Capacity
Richard Anthony Longes (Australian)   Chairperson and independent non-executive director
Stephen Koseff (South African)        Non-executive director
Samuel Ronald Leon (South African)    Non-executive director
Graeme Anthony Katz (Australian)      Executive director
Sally Herman (Australian)             Lead independent non-executive director
Hugh Martin (Australian)              Independent non-executive director

Details on directors' experience is set out in the Directorate section of this report. Details of Board meetings are set out in
the Corporate Governance section of this report.

Principal activities
The principal activities of the Fund are to invest in high quality
commercial real estate assets to derive rental income and capital
growth.

The Fund did not have any employees during the year.

Review of operations
A detailed review of operations is included in the CEO report.

Results
The net profit of the Fund is presented in the statement of profit or
loss and other comprehensive income. The net profit for the year
ended 31 March 2019 is AUD 53 099 283.

The net assets of the Fund are AUD 621 477 206 at 31 March
2019. This equates to a net asset value of AUD 1.30 per unit.

Distributions
Unitholders were given notice of a final distribution declaration
number 11 of:
- 5.18 AUD cents per unit pre-withholding tax
- 4.75 AUD cents per unit post-withholding tax

for the six months ended 31 March 2019. Withholding tax of
0.42528 AUD cents per unit will be withheld from the distribution
paid to non-Australian unitholders. This is regarded as a foreign
distribution for South African unitholders.

Unitholders were given notice of a special distribution declaration
number 12 of:
- 1.59 AUD cents per unit pre-withholding tax
- 1.46 AUD cents per unit post-withholding tax
  for the period 1 April 2019 to 27 May 2019

Withholding tax of 0.13452 AUD cents per unit will be withheld
from the distribution paid to non-Australian unitholders. This is
regarded as a foreign distribution for South African unitholders.

Refer to section 6 of this report for further details on distributions.

Performance
The full year distribution growth is 2.0% pre-withholding tax and
1.2% post-withholding tax.

The effective tax rate for the year is 8.10834% compared to
7.95895% for the prior year which has impacted the lower growth
rate in the post-WHT distribution.

The effective tax rate has been impacted by a reduction in the
depreciation shield, from 39% in FY18 to 34% in FY19 along with
an antecedent distribution in FY18 not subject to tax not recurring
in FY19.

The performance of the Fund is a result of the successful
implementation of the Fund's strategy, namely:

- delivering stable income growth;
- engaging in active property management; and
- efficiently managing the balance sheet and interest rates.

Interests of IPL
IPL has delegated the management of the Fund to IPML. IPL was not paid any fees during the period. The following fees were paid to IPML
during the period:

AUD                                                         2019        2018   
Asset management fee                                   5 761 459   5 119 830   
Property management fee*                               1 305 528   1 281 754   

*   IPML has been contracted to perform property management services. IPML has sub-contracted certain of these services to third party property managers
    who receive a fee from IPML.

Significant changes in the state of affairs
There have been no significant changes in the nature of the Fund's
activities during the period.

Likely developments
The Fund will continue to pursue its strategy of investing in high
quality commercial real estate assets that are well located in major
metropolitan cities or established commercial precincts in Australia.
In pursuing this strategy IPL intends to fulfil the objectives of the
fund being:
- to grow and diversify the Fund's asset base with further
  investments offering attractive income and capital growth
  profiles which will also spread investment risk;
- to offer unitholders growth in income and capital appreciation
  across a sectorally diversified portfolio; and
- to maintain a strong corporate governance framework to ensure
  the interests of unitholders are protected.

To achieve these objectives, IPL intends to pursue the following
strategies:
- focus on property fundamentals;
   - acquire quality commercial real estate with the following
     characteristics:
   - medium to long-term lease profiles;
   - situated in well-located commercial precincts;
   - limited or no short-term capex requirements;
   - contracted rental growth; and
   - sustainable income supported by strong tenant covenants;
- leverage off IPL's on-the-ground presence in Australia and
  existing relationships with key players in the industry to source
  growth opportunities;
- maximise property performance through pro-active asset
  management, property management and leasing; and
- implement appropriate debt and equity funding strategies and
  adopt a prudent interest rate hedging policy.

Directors' interests in units
The directors' interest in units is set out in note 17 of
the financial report on page 63.

Directors' remuneration
No fees are paid by the Fund to the directors or officers of IPML.

Directors of IPL who are employees or directors of other entities
within the Investec Group are not remunerated for their services
as directors of IPL. The remuneration of any independent, non-
associated and non-executive director appointed to the Board is
limited to the reimbursement of reasonable expenses incurred by
such person for purposes of attending Board meetings and the
appropriate director's fees, unless IPL determines otherwise.
In respect of the independent, non-associated and non-executive
directors, fees and expenses are reimbursed out of the Fund.

Accordingly, directors' remuneration for the year to 31 March 2019 was as follows:

                                                                             Provident                     
                                        Salary                                 pension                     
                                    (including                Fees for        fund and                     
For the period to 31 March 2019     emoluments   Directors'      other     medical aid                     
AUD'000                           paid by IAL)         fees   services   contributions   Bonuses   Total   
Directors                                                                                                  
Richard Longes(1)                            -           37          -               -         -      37   
Stephen Koseff(2)                            -           13          -               -         -      13   
Sam Leon(2)                                  -           19          -               -         -      19   
Graeme Katz(3)                             155            -          -               -         -     155   
Sally Herman(4)                              -           56          -               -         -      56   
Hugh Martin(4)                               -           45          -               -         -      45   
Total                                      155          170          -               -         -     325   

(1) Apportionment of directors' fees paid by IAL that are attributable to the Fund. Richard Longes is not separately remunerated for his services as a director
    of IPL as he is remunerated by IAL for his services as a director of IAL. An estimate of attributable fees has been provided based on market related non-
    executive director and chairperson fees and proportion of time allocated to IAPF. Mr Longes is not remunerated out of the Fund.
(2) Stephen Koseff and Sam Leon receive fees for their services to the Investec Group and are not separately remunerated for their services as directors of
    IPL. An estimate of attributable fees has been provided based on market related non-executive directors' fees and proportion of time allocated to the Fund,
    however these directors are not remunerated out of the Fund.
(3) Graeme Katz is not separately remunerated for his services as chief executive officer and director of IPL as he is remunerated by IAL. The amount disclosed
    represents an allocation of his remuneration commensurate with his role as an executive director of IPL but is not a cost to the Fund.
(4) Sally Herman and Hugh Martin are independent, non-associated and non-executive directors of IPL and their remuneration is apportioned between all
    funds managed by IPL based on gross asset value. Ms. Herman is also remunerated for her role as chairperson of the audit and risk committee.


Directors' remuneration for the year to 31 March 2018 was as follows:

                                                                             Provident                     
                                        Salary                                 pension                     
                                    (including                Fees for        fund and                     
For the period to 31 March 2018     emoluments   Directors'      other     medical aid                     
AUD'000                           paid by IAL)         fees   services   contributions   Bonuses   Total   
Directors                                                                                                  
Richard Longes(1)                            -           37          -               -         -      37   
Stephen Koseff(2)                            -           13          -               -         -      13   
Sam Leon(2)                                  -           19          -               -         -      19   
Graeme Katz(3)                             155            -          -               -         -     155   
Sally Herman(4)                              -           56          -               -         -      56   
Hugh Martin(4)                               -           45          -               -         -      45   
Total                                      155          170          -               -         -     325   

(1) Apportionment of directors' fees paid by IAL that are attributable to the Fund. Richard Longes is not separately remunerated for his services as a director
    of IPL as he is remunerated by IAL for his services as a director of IAL. An estimate of attributable fees has been provided based on market related non-
    executive director and chairperson fees and proportion of time allocated to IAPF. Mr Longes is not remunerated out of the Fund.
(2) Stephen Koseff and Sam Leon receive salaries as employees of Investec Group subsidiaries and are not separately remunerated for their services as
    directors of IPL. An estimate of attributable fees has been provided based on market related non-executive directors' fees and proportion of time allocated
    to the Fund, however these directors are not remunerated out of the Fund.
(3) Graeme Katz is not separately remunerated for his services as chief executive officer and director of IPL as he is remunerated by IAL. The amount disclosed
    represents an allocation of his remuneration commensurate with his role as an executive director of IPL but is not a cost to the Fund.
(4) Sally Herman and Hugh Martin are independent, non-associated and non-executive directors of IPL and their remuneration is apportioned between all
    funds managed by IPL based on gross asset value. Ms. Herman is also remunerated for her role as chairperson of the audit and risk committee.

Corporate governance
The Fund's corporate governance statement and governance
framework are set out on page 28 of this report.

Audit and risk committee
The audit and risk committee comprising independent non-
executive directors meets regularly with the senior management of
IPML and the external auditors to consider the nature and scope
of the assurance activities and the effectiveness of the risk and
control systems.

Further details on the role and responsibility of the
audit and risk committee are set out on page 29 of
this report.

Auditors
KPMG have been appointed by IPL as auditors of the Fund.

Contracts
The Fund does not have any contracts with directors of IPL.

Subsidiaries
The Fund has a number of wholly owned trusts which hold the
Fund's property assets. Details of subsidiaries are set out in note
18 of the financial statements.

Major unitholders
The largest unitholders of the Fund are set out on page 78.

Accounting policies and disclosure
Accounting policies are set having regard to commercial practice
and comply with applicable Australian law and IFRS.

These policies are set out in note 1 of the financial
report on page 50 of this report.

Financial instruments
Detailed information on the Fund's risk management
process and policy can be found in the risk
management report on page 32 of this report.

Information on the Fund's use of derivatives can be
found in note 22 of the financial report on page 65 of
this report.

Management and administration
The Fund is managed by IPML which is a wholly owned subsidiary
of IAPHPL. IPML provides fund management services and
property management services to the Fund under the terms of
a management agreement. IPML has in turn outsourced certain
of the property management services to property management
companies, namely Knight Frank Australia Pty Ltd, MaxiServ
Pty Limited, Norwest Commercial and Industrial Real Estate Pty
Limited, Honeywell Limited, Kiwi Property, Abacus Property Group
and MMJ Real Estate.

Environmental regulation
The Fund's operations are not subject to any significant
environmental regulation under Commonwealth, State or
Territory legislation.

Events subsequent to reporting date
During the year the Fund received unitholder approval to pursue
an ASX listing and associated capital raising. A product disclosure
statement dated on or around the same date as this report will be
issued in relation to ASX listing and associated capital raise.

There is no other item, transaction or event of a material and
unusual nature likely, in the opinion of IPL, to affect significantly the
operations of the Fund, the results of these operations, or the state
of affairs of the Fund, in future financial years.

Indemnities and insurance premiums for officers or auditors
Indemnification
Under the Fund's constitution IPL, including its officers and
employees, is indemnified out of the Fund's assets for any loss,
damage, expense or other liability incurred by it in properly
performing or exercising any of its powers, duties or fights in
relation to the Fund.

The Fund has not indemnified any auditor of the Fund.

Insurance premiums
No insurance premiums are paid out of the Fund's assets in
relation to insurance cover for IPL, its officers and employees or the
auditors of the Fund.

Rounding off
The Fund is of a kind referred to in ASIC Class Order 2016/191
dated 24 March 2016 and in accordance with that ASIC Class
Order, amounts in the financial report and directors' report have
been rounded off to the nearest thousand dollars, unless otherwise
stated.

This report is made with a resolution of the directors of IPL.


RA Longes                  GA Katz

Sydney                     Sydney
3 May 2019                 3 May 2019


INDEPENDENT AUDITOR'S REPORT TO THE
UNITHOLDERS OF INVESTEC AUSTRALIA PROPERTY FUND

Report on the audit of the consolidated financial statements
Opinion
We have audited the consolidated financial statements of Investec
Australia Property Fund (the Group) set out on pages 42 to 72,
which comprise the consolidated statement of financial position as at
31 March 2019, and the consolidated statement of profit or loss and
other comprehensive income, the consolidated statement of changes
in equity and the consolidated statement of cash flows for the year
then ended, segmental analysis and notes to the financial statements,
including a summary of significant accounting policies.

In our opinion, the consolidated financial statements present fairly, in
all material respects, the consolidated financial position of Investec
Australia Property Fund as at 31 March 2019, and its consolidated
financial performance and consolidated cash flows for the year then
ended in accordance with International Financial Reporting Standards.

Basis for opinion
We conducted our audit in accordance with International Standards
on Auditing (ISAs). Our responsibilities under those standards are
further described in the Auditor's Responsibilities for the Audit of
the Consolidated Financial Statements section of our report. We
are independent of the Group in accordance with the Independent
Regulatory Board for Auditors Code of Professional Conduct for
Registered Auditors (IRBA Code) and other independence requirements
applicable to performing audits of financial statements in South Africa.
We have fulfilled our other ethical responsibilities in accordance with
the IRBA Code and in accordance with other ethical requirements
applicable to performing audits in South Africa. The IRBA Code
is consistent with the International Ethics Standards Board for
Accountants Code of Ethics for Professional Accountants (Parts A and
B). We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.

Key audit matters
Key audit matters are those matters that, in our professional
judgement, were of most significance in our audit of the consolidated
financial statements of the current period. These matters were
addressed in the context of our audit of the consolidated financial
statements as a whole, and in forming our opinion thereon, and we
do not provide a separate opinion on these matters.

The key audit matter

Valuation of investment property
Refer to accounting policy note 1.10 and notes 10 and 22.3 of the 
financial statements 

The Group has investment property amounting to AUD1 063 million
included in the Consolidated statement of financial position at year
end, which represented a significant asset for the Group.

Valuation of the investment property is an area of significant
judgement. Independent valuations were obtained in the current
year from external independent valuers.

The fair value calculations are prepared considering the aggregate
of the net annual rent receivable from the properties and, where
relevant, associated costs, using the discounted cash flow (DCF)
method and the income capitalisation method.

Due to the significant judgement applied by the directors, the
involvement of external experts, the significance of the balance and
the work effort from the audit team, the valuation of investment
property was considered a key audit matter.

How the matter was addressed in our audit

Our audit procedures in respect of the external valuations, which
comprise 100% of the valuations in the current year, included the
following:
- For investment property, we selected a sample of properties
  which either were new acquisitions, showed significant
  valuation movement or were identified through discussions
  with management. For the properties selected, we challenged
  the key judgements and assumptions included in the external
  independent valuers reports by comparing and corroborating
  the key assumptions to external market data, individual property
  performance, historical trends of the valuations of these properties
  and consistency of these based on our knowledge of the market.
- We challenged the key judgements and assumptions included
  in the external independent valuers reports by comparing and
  corroborating the key assumptions to external market data
  and our understanding of the market and individual property
  performance;
- We evaluated the competence, independence and experience of
  the external independent valuers.
- We evaluated the consistency of the valuation methodology
  applied and the appropriateness thereof to the relevant
  accounting standards and Group policy.
- We evaluated the appropriateness of the capitalisation rate method
  used by the valuers in the context of the current market.

Other information
The directors are responsible for the other information. The other information comprises all information included in the Annual Report. Other
information does not include the consolidated financial statements and our auditor's report thereon.

Our opinion on the consolidated financial statements does not cover the other information and we do not express an audit opinion or any
form of assurance conclusion thereon.

In connection with our audit of the consolidated financial
statements, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially
inconsistent with the consolidated financial statements or our
knowledge obtained in the audit, or otherwise appears to be
materially misstated. If, based on the work we have performed,
we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing
to report in this regard.

Responsibilities of the directors for the consolidated financial
statements
The directors are responsible for the preparation and fair
presentation of the consolidated financial statements in
accordance with International Financial Reporting Standards and
for such internal control as the directors determine is necessary to
enable the preparation of consolidated financial statements that are
free from material misstatement, whether due to fraud or error.

In preparing the consolidated financial statements, the directors
are responsible for assessing the Group's ability to continue as a
going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless
the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the consolidated
financial statements
Our objectives are to obtain reasonable assurance about whether
the consolidated financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to
issue an auditor's report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with ISAs will always detect
a material misstatement when it exists. Misstatements can arise
from fraud or error and are considered material if, individually or
in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these
consolidated financial statements.

As part of an audit in accordance with ISAs, we exercise
professional judgement and maintain professional scepticism
throughout the audit. We also:

- Identify and assess the risks of material misstatement of the
  consolidated financial statements, whether due to fraud or error,
  design and perform audit procedures responsive to those risks,
  and obtain audit evidence that is sufficient and appropriate
  to provide a basis for our opinion. The risk of not detecting a
  material misstatement resulting from fraud is higher than for
  one resulting from error, as fraud may involve collusion, forgery,
  intentional omissions, misrepresentations, or the override of
  internal control.
- Obtain an understanding of internal control relevant to the audit
  in order to design audit procedures that are appropriate in the
  circumstances, but not for the purpose of expressing an opinion
  on the effectiveness of the Group's internal control.
- Evaluate the appropriateness of accounting policies used
  and the reasonableness of accounting estimates and related
  disclosures made by the directors.
- Conclude on the appropriateness of the directors' use of the
  going concern basis of accounting and based on the audit
  evidence obtained, whether a material uncertainty exists related
  to events or conditions that may cast significant doubt on the
  Group's ability to continue as a going concern. If we conclude
  that a material uncertainty exists, we are required to draw
  attention in our auditor's report to the related disclosures in the
  consolidated financial statements or, if such disclosures are
  inadequate, to modify our opinion. Our conclusions are based
  on the audit evidence obtained up to the date of our auditor's
  report. However, future events or conditions may cause the
  Group to cease to continue as a going concern.

- Evaluate the overall presentation, structure and content of the
  consolidated financial statements, including the disclosures,
  and whether the consolidated financial statements represent
  the underlying transactions and events in a manner that
  achieves fair presentation.
- Obtain sufficient appropriate audit evidence regarding the
  financial information of the entities or business activities within
  the Group to express an opinion on the consolidated financial
  statements. We are responsible for the direction, supervision
  and performance of the Group audit. We remain solely
  responsible for our audit opinion.

We communicate with the directors regarding, among other
matters, the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in internal
control that we identify during our audit.

We also provide the directors with a statement that we
have complied with relevant ethical requirements regarding
independence, and to communicate with them all relationships
and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.

From the matters communicated with the directors, we determine
those matters that were of most significance in the audit of the
consolidated financial statements of the current period and are
therefore the key audit matters. We describe these matters in our
auditor's report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably
be expected to outweigh the public interest benefits of such
communication.

Report on other legal and regulatory requirements
In terms of the IRBA Rule published in Government Gazette
Number 39475 dated 4 December 2015, we report that KPMG
Inc. has been the auditor of Investec Australia Property Fund for
five years.


KPMG Inc.

Per Tracey Middlemiss
Chartered Accountant (SA)
Registered Auditor
Director

3 May 2019

KPMG Crescent
85 Empire Road
Parktown
Johannesburg

CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

For the year ended 31 March                                                                                                          
AUD'000                                                                                               Notes        2019       2018   
Revenue, excluding straight-line rental revenue adjustment                                                       88 539     75 451   
Straight-line rental revenue adjustment                                                                             930      2 146   
Revenue                                                                                                   2      89 469     77 597   
Property expenses                                                                                         3    (18 226)   (13 897)   
Net property income                                                                                              71 243     63 700   
Other operating expenses                                                                                  4     (6 951)    (6 177)   
Operating profit                                                                                                 64 292     57 523   
Fair value adjustments                                                                                    5       3 184     61 225   
Finance costs                                                                                             6    (14 636)   (10 700)   
Finance income                                                                                            7          94        117   
Other income                                                                                                        165         40   
Total comprehensive income attributable to unitholders                                                           53 099    108 205   
Basic and diluted earnings per unit (cents)                                                               9       11.09      24.04   

The Notes on pages 55 to 72 are an integral part of these consolidated financial statements.


CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 31 March                                                                                                                      
AUD'000                                                                                               Notes        2019       2018   
Assets                                                                                                                               
Non-current assets                                                                                            1 069 211    987 663   
Investment property                                                                                      10   1 062 767    986 696   
Financial instruments held at fair value                                                                 22       6 444        967   
Current assets                                                                                                   14 200     10 976   
Cash and cash equivalents                                                                                12       7 792      7 218   
Trade and other receivables                                                                              11       6 408      3 758   
Total assets                                                                                                  1 083 411    998 639   
EQUITY AND LIABILITIES                                                                                                               
Equity                                                                                                          621 477    617 363   
Contributed equity                                                                                       13     515 203    515 203   
Retained earnings                                                                                               106 274    102 160   
Non-current liabilities                                                                                         401 614    350 614   
Long-term borrowings                                                                                     14     375 163    342 431   
Trade and other payables                                                                                 15       5 265      6 187   
Financial instruments held at fair value                                                                 22      21 186      1 996   
Current liabilities                                                                                              60 320     30 662   
Borrowings                                                                                               14      28 635          -   
Trade and other payables                                                                                 15       6 898      6 335   
Distribution payable                                                                                      8      24 787     24 327   
Total equity and liabilities                                                                                  1 083 411    998 639   
Number of units in issue ('000)                                                                                 478 802    478 802   
Net asset value per unit (AUD)*                                                                                    1.30       1.29   

*   Net asset value per unit is calculated by dividing net asset by the number of unit in issue.
                                    
The Notes on pages 55 to 72 are an integral part of these consolidated financial statements.                         


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

                                                                                                                             Total   
For the year ended 31 March 2019                                                             Contributed   Retained   unitholders'   
AUD'000                                                                                           equity   earnings       interest   
Balance at 1 April 2017                                                                          466 879     38 789        505 668   
Total comprehensive income attributable to unitholders                                                 -    108 205        108 205   
Issue of ordinary units                                                                           51 540         --         51 540   
Distributions paid/payable to ordinary unitholders                                               (3 216)   (44 834)       (48 050)   
Balance at 31 March 2018                                                                         515 203    102 160        617 363   
Total comprehensive income attributable to unitholders                                                       53 099         53 099   
Issue of ordinary units                                                                                           -              -   
Distributions paid/payable to ordinary unitholders                                                         (48 985)       (48 985)   
Balance at 31 March 2019                                                                         515 203    106 274        621 477   

The adjustment made to retained earnings on the impact of applying IFRS 9 and IFRS 15 is NIL

The Notes on pages 55 to 72 are an integral part of these consolidated financial statements.


CONSOLIDATED STATEMENT OF CASH FLOWS   
                                                                                  
For the year ended 31 March                                                                                               
AUD'000                                                                                               Notes       2019        2018   
Cash flows from operating activities                                                                                                 
Rental income received                                                                                          87 349      73 395   
Property expenses                                                                                             (17 241)    (14 166)   
Fund expenses                                                                                                  (9 836)     (6 177)   
Security deposits received/(refunded)                                                                              763       (798)   
Cash generated from operations                                                                                  61 035      52 254   
Finance income received                                                                                             95         117   
Finance costs paid                                                                                            (15 064)    (10 443)   
Distribution paid to unitholders                                                                              (48 186)    (45 179)   
Net cash (used in)/from operating activities                                                             16    (2 120)     (3 251)   
Cash flows from/(used in) investing activities                                                                                       
Investment property acquired                                                                                  (54 394)   (134 920)   
Acquisition costs and capital expenditure                                                                      (4 706)     (4 379)   
Net cash outflow used in investing activities                                                                 (59 100)   (139 299)   
Cash flows from financing activities                                                                                                 
Borrowings raised                                                                                               78 294     109 313   
Repayment of loans                                                                                            (16 500)    (15 200)   
Proceeds from issue of units                                                                                         -      52 054   
Payment related to capital raising                                                                                   -       (515)   
Net cash inflow from financing activities                                                                       61 794     145 652   
Net increase in cash and cash equivalents                                                                          574       3 103   
Cash and cash equivalents at beginning of the period                                                             7 218       4 116   
Cash and cash equivalents at end of the period                                                           12      7 792       7 218 
  
The Notes on pages 55 to 72 are an integral part of these consolidated financial statements.                          


SEGMENTAL ANALYSIS

The Fund has determined the reportable
segments to be on two separate segments,
as follows:
1.   The Fund's investment properties
     are made up of office and industrial
     assets. This is the first segment basis
     determined to be relevant to report
     and is consistent with the sectoral
     spread disclosure of the portfolio in
     the Fund's property landscape (refer
     to Section 1 of the annual report
     - Overview of Investec Australia
     Property Fund).

2.   The Fund's investment properties
     are geographically spread over the
     states of Australia and New Zealand.
     This is the second segment basis
     determined to be relevant to report
     and is consistent with the geographical
     spread disclosure of the portfolio in
     the Fund's property landscape (refer
     to Section 1 of the annual report
     - Overview of Investec Australia
     Property Fund).

For the year ended 31 March 2019                                                                                         
AUD'000                                                                                            Office   Industrial       Total   
Statement of profit or loss and other comprehensive income 2019                                                                      
Revenue from external customers, excluding straight-line rental revenue adjustment                 67 680       20 859      88 539   
Straight-line rental revenue adjustment                                                               295          635         930   
Revenue                                                                                            67 975       21 494      89 469   
Property expenses                                                                                (15 698)      (2 528)    (18 226)   
Net property income                                                                                52 277       18 966      71 243   

Statement of financial position extracts at 31 March 2019                                                                            
Investment property balance 1 April 2018                                                          770 922      215 774     986 696   
Acquisitions                                                                                       29 750       19 450      49 200   
Foreign currency revaluation on property                                                            2 515            -       2 515   
Acquisition costs and capital expenditure                                                           7 004        1 186       8 190   
Straight-line rental revenue receivable                                                               375          635       1 010   
Fair value adjustments                                                                             12 301        2 855      15 156   
Investment property at 31 March 2019                                                              822 867      239 900   1 062 767   
Other assets not managed on a segmental basis                                                                               20 644   
Total assets as at 31 March 2019                                                                                         1 083 411   


                                                                                                     Austra-                         
                                                                                             New        lian                         
For the year ended 31 March 2019                       Queens-       South     Western     South     Capital       New               
AUD'000                                     Victoria      land   Australia   Australia     Wales   Territory   Zealand       Total   
Statement of profit or loss and                                                                                                      
other comprehensive income 2019                                                                                                      
Revenue from external customers,                                                                                                     
excluding straight-line rental revenue                                                                                               
adjustment                                    14 306    17 952       1 034       2 566    33 807       7 094    11 780      88 539   
Straight-line rental revenue adjustment           21       307        (26)         221       704        (47)     (250)         930   
Revenue                                       14 327    18 259       1 008       2 787    34 511       7 047    11 530      89 469   
Property expenses                            (2 491)   (3 649)        (70)       (335)   (6 916)     (1 061)   (3 704)    (18 226)   
Net property income                           11 836    14 610         938       2 452    27 595       5 986     7 826      71 243   

Statement of financial position extracts at 31 March 2019                                                                                                          
Investment property balance                                                                                                          
1 April 2018                                 167 700   203 150       9 401      29 000   388 351      69 623   119 471     986 696   
Acquisitions                                  19 450         -           -           -         -      29 750         -      49 200   
Acquisition costs and capital                                                                                                        
expenditure                                    1 554       908          10          17     3 922       1 520       259       8 190   
Foreign currency revaluation on                                                                                                      
property                                           -         -           -           -         -           -     2 515       2 515   
Straight-line rental revenue receivable           21       307        (26)         221       704        (47)     (170)       1 010   
Fair value adjustments                        12 775     2 485       (134)         262   (1 126)          52       842      15 156   
Investment property at                                                                                                               
31 March 2019                                201 500   206 850       9 251      29 500   391 851     100 898   122 917   1 062 767   
Other assets not managed on a                                                                                                        
segmental basis                                                                                                             20 644   
Total assets as at 31 March 2019                                                                                         1 083 411   


For the year ended 31 March 2018                                                                                        
AUD'000                                                                                             Office   Industrial      Total   
Statement of profit or loss and other comprehensive income 2018                                                                      
Revenue from external customers, excluding straight-line rental revenue adjustment                  57 453       17 998     75 451   
Straight-line rental revenue adjustment                                                              2 279        (133)      2 146   
Revenue                                                                                             59 732       17 865     77 597   
Property expenses                                                                                 (11 814)      (2 083)   (13 897)   
Net property income                                                                                 47 918       15 782     63 700   

Statement of financial position extracts at 31 March 2018                                                                            
Investment property balance 1 April 2017                                                           597 151      182 199    779 350   
Acquisitions                                                                                       112 137       22 000    134 137   
Foreign currency revaluation on purchase                                                             3 745            -      3 745   
Acquisition costs and capital expenditure                                                            4 420        1 629      6 049   
Straight-line rental revenue receivable                                                              2 279        (133)      2 146   
Fair value adjustments                                                                              51 190       10 079     61 269   
Investment property at 31 March 2018                                                               770 922      215 774    986 696   
Other assets not managed on a segmental basis                                                                               11 943   
Total assets as at 31 March 2018                                                                                           998 639   


                                                                                                      Austra-                        
                                                                                              New        lian                        
For the year ended 31 March 2018                        Queens-       South     Western     South     Capital       New              
AUD'000                                      Victoria      land   Australia   Australia     Wales   Territory   Zealand      Total   
Statement of profit or loss and                                                                                                      
other comprehensive income 2016                                                                                                      
Revenue from external customers,                                                                                                     
excluding straight-line rental revenue                                                                                               
adjustment                                     11 741    17 580         996       2 398    32 519       6 708     3 509     75 451   
Straight-line rental revenue adjustment            51       702           8         286     1 162       (219)       156      2 146   
Revenue                                        11 792    18 282       1 004       2 684    33 681       6 489     3 665     77 597   
Property expenses                             (2 140)   (3 674)        (66)       (264)   (5 818)       (975)     (960)   (13 897)   
Segment results                                 9 652    14 608         938       2 420    27 863       5 514     2 705     63 700   

Statement of financial position extracts at 31 March 2018                                                                                                      
Investment property balance                                                                                                          
1 April 2017                                  128 500   195 150       9 601      27 300   349 501      69 298         -    779 350   
Acquisitions                                   22 000         -           -           -         -           -   112 137    134 137   
Foreign currency revaluation on                                                                                                      
purchase                                            -         -           -           -         -           -     3 745      3 745   
Acquisition costs and capital                                                                                                        
expenditure                                     2 527     2 116           -          44     1 047           -       315      6 049   
Straight-line rental revenue receivable            51       702           8         286     1 162       (219)       156      2 146   
Fair value adjustments                         14 622     5 182       (208)       1 370    36 641         544     3 118     61 269   
Investment property at                                                                                                               
31 March 2018                                 167 700   203 150       9 401      29 000   388 351      69 623   119 471    986 696   
Other assets not managed on a                                                                                                        
segmental basis                                                                                                             11 943   
Total assets as at 31 March 2018                                                                                           998 639   

The Notes on pages 55 to 72 are an integral part of these consolidated financial statements.


NOTES TO THE FINANCIAL STATEMENTS

Corporate information
The financial report of IAPF for the year ended 31 March 2019 was
authorised for issue in accordance with a resolution of the directors
of IPL (the RE) on 3 May 2019.

IAPF is domiciled in Australia. IPL is incorporated and domiciled in
Australia.

The nature of the operations and principal activities of IAPF are
described in the Director's Report.

The registered office of IPL is located at:
Level 23
The Chifley Tower
2 Chifley Square
Sydney NSW 2000
Australia

Reporting entity
IAPF is an Australian registered managed investment scheme
under the Act. IAPF is a for profit entity. The consolidated financial
statements of the Fund as at and for the year ended 31 March
2019 comprise the Fund and its subsidiaries (together referred to
as 'the Group').

Working capital management
The Fund utilises its monthly cash flows to pay down its debt
facility whilst maintaining the facility limit. The Fund will draw this
cash back from the debt facility in order to pay its final distribution
and special distribution in May 2019. This results in the most
efficient use of the Fund's strong cash flows. The current undrawn
facility limit is AUD 26.3mn and the Fund has the ability to draw on
this unconditionally.

Going concern
The Fund is in a net current liability position of AUD 46mn as at
31 March 2019. The net current liability position is principally due
to the final distribution declared and borrowings which are due for
repayment on 12 March 2020. It is anticipated that these will be
paid from proceeds from the capital raising outlined in Note 21
and Section 1 of this report. Under an alternative proposal, the
Fund will extend the term of the current borrowings. Management
has prepared two separate cashflow forecasts, based on these
two scenarios, which reflect that the Fund will be able to meet its
commitments as they become due. Management has therefore
prepared the financial statements on a going concern basis.

1.      Accounting policies

1.1     Basis of preparation
1.1.1   Statement of compliance
        The annual financial statements are prepared in
        accordance with and compliance with International
        Financial Reporting Standards and the SAICA Financial
        Reporting Guides as issued by the Accounting Practices
        Committee and Financial pronouncements as issued by
        Financial Reporting Standards Council.

1.1.2   Basis of measurement
        The consolidated financial statements have been prepared
        on the historical cost basis except for the following material
        items in the statement of financial position:
        - derivative financial instruments are me assured at fair
          value; and
        - investment property is measured at fair value.

        The financial statements are prepared on the going
        concern basis and the accounting policies set out below
        have been applied consistently by the Fund.

1.1.3   Functional and presentation currency
        These consolidated financial statements are presented in
        AUD, which is IAPF's functional currency.

        IAPF is of a kind referred to in ASIC Class Order 2016/191
        dated 24 March 2016 and in accordance with that
        ASIC Class Order, all financial information presented in
        AUD has been rounded to the nearest thousand unless
        otherwise stated.

1.1.4   Use of estimates and judgements
        The preparation of the consolidated financial statements
        in conformity with IFRS requires the board to make
        judgements, estimates and assumptions that affect the
        application of policies and reported amounts of assets
        and liabilities, income and expenses. The estimates
        and associated assumptions are based on historical
        experience and various other factors that are believed to
        be reasonable under the circumstances, the results of
        which form the basis of making judgements about carrying
        values of assets and liabilities that are not readily apparent
        from other sources. Actual results may differ from these
        estimates.

        The estimates and underlying assumptions are reviewed
        on an ongoing basis. Revisions to accounting estimates
        are recognised in the period in which the estimate is
        revised if the revision affects only that period, or the period
        of the revision and future periods if the revision affects both
        current and future periods.

        The key area in which estimates are applied relates to
        the valuation of investment properties. Refer to note 10
        for information on best estimates used in the valuation of
        investment properties.

1.2     Basis of consolidation
1.2.1   Controlled entities
        The group controls an entity when it is exposed to, or has
        rights to, variable returns from its involvement with the
        entity and has the ability to affect those returns through
        its power over the entity. The financial statements of
        controlled entities are included in the consolidated financial
        statements from the date on which control commences
        until the date on which control ceases.

        All subsidiaries are 100% owned trusts and controlled by
        the group with no restrictions.

1.2.2   Transactions eliminated on consolidation
        Intra-group balances and transactions, and any
        unrealised income and expenses arising from intra-group
        transactions, are eliminated.

1.3     Segmental reporting
        Determination and presentation of operating segments
        The Group has the following operating segments:
        - office properties; and
        - industrial properties.

        The above segments are derived from the way the
        business of the Group is structured, managed and
        reported to the chief operating decision-makers. The
        Group manages its business in the office and industrial
        property sectors where resources are specifically allocated
        to each sector in achieving the Group's stated objectives.

        Segment results include revenue and expenses directly
        attributable to a segment and the relevant portion of
        enterprise revenue and expenses that can be allocated
        on a reasonable basis to a segment. Segment assets
        and liabilities comprise those assets and liabilities that are
        directly attributable to the segment on a reasonable basis.

        Segment capital expenditure is the total cost incurred
        during the period on investment property in each segment.

1.4     Revenue recognition
        Revenue consists of rental income measured at the fair
        value of consideration received or receivable.

        Revenue is recognised when it can be reliably measured
        and it is probable that the economic benefits will flow to
        the Group.

        Revenue from investment property in terms of leases
        comprises gross rental income and recoveries of operating
        costs, net of GST. Rental income is recognised in profit
        or loss on a straight-line basis over the term of the rental
        agreement where the revenue under the lease terms is
        fixed and determinable. For leases where revenue is
        determined with reference to market reviews, inflationary
        measures or other variables, revenue is not straight-
        lined and is recognised in accordance with lease terms
        applicable for the period.

        The Group recovers the costs associated with general
        building and tenancy operation from lessees in accordance
        with lease agreements. These are invoiced monthly based
        on an annual estimates basis. The consideration is due
        30 days from the invoiced date. Recoverable outgoings
        revenue is recognised over time, based on the annual
        estimates, with the estimates reconciled at least annually.

1.5     Lease incentives and commissions
        Any lease incentives provided to a tenant under the
        terms of a lease such as fit-outs or rent free periods are
        recognised as an expense or reduction in revenue on a
        straight-line basis over the term of the lease.

        Leasing commissions paid to agents on signing of lease
        agreements are recognised as an expense on a straight-
        line basis over the term of the lease.

1.6     Finance income
        Finance income includes:
        - interest earned on cash invested with financial
           institutions which are recognised in the profit or loss on
           an accrual basis using the effective interest method.
1.7     Finance costs
        Finance costs include:
        - interest expense and other borrowing costs which are
           recognised in the profit or loss on an accrual basis
           using the effective interest method; and
        - net gain and losses on financial instruments measured
           at fair value through profit or loss.

1.8     Earnings per unit
        Basic earnings per unit is determined by dividing the profit
        or loss of the group by the weighted average number of
        units outstanding during the financial year.

        There are no instruments in issue that could potentially
        result in a dilution in earnings per unit in the future.

        Headline earnings is profit for the period adjusted for
        certain remeasurements such as investment property
        fair value adjustments. As required by the JSE Listings
        Requirements headline earnings per unit is calculated
        using Circular 4/2018.

1.9     Financial instruments
        The Fund recognises financial instruments when it
        becomes party to the contractual provisions of the
        instrument.

        Financial instruments are initially recognised at their fair
        value plus, for financial assets or financial liabilities not
        at fair value through profit or loss, transaction costs that
        are directly attributable to the acquisition or issue of the
        financial assets or financial liabilities. All other transaction
        costs are recognised in profit or loss immediately.

        Any gains or losses on these instruments arising from
        fair value adjustments, where appropriate, do not affect
        distributable earnings.

        The Fund derecognises a financial asset when the
        contractual rights to the cash flows from the asset expire,
        or it transfers the rights to receive the contractual cash
        flows on the financial asset in a transaction in which
        substantially all the risks and rewards of ownership of the
        financial asset are transferred. Any interest in transferred
        financial assets that is created or retained by the Fund
        is recognised as a separate asset or liability. The Fund
        derecognises a financial liability when its contractual
        obligations are discharged, cancelled or expired.

1.9.1   Trade and other receivables
        Trade and other receivables are subsequently measured at
        amortised cost using the effective interest method, less any
        allowance under the expected credit loss ("ECL") model.

        At each reporting period, the Group assesses whether
        financial assets carried at amortised cost are credit-
        impaired. A financial asset is credit-impaired when one
        or more events that has a detrimental impact on the
        estimated future cash flows of the financial asset have
        occurred.

        The Group recognises loss allowances at an amount
        equal to lifetime ECL on trade and other receivables.
        Loss allowances for financial assets measured
        at amortised cost are deducted from the gross carrying
        amount of the assets.

        Lifetime ECLs are the ECLs that result from all possible
        default events over the expected life of the trade
        receivables and are a probability-weighted estimate of
        credit losses. Credit losses are measured as the difference
        between cash flows due to the Group in accordance with
        the contract and the cash flows that the Group expects
        to receive. The Group analyses the age of outstanding
        receivable balances and applies historical default
        percentages adjusted for other current observable data as
        a means to estimate lifetime ECL, including:
        - significant financial difficulty of a tenant; or
        - default or delinquency by a tenant.

        Debts that are known to be uncollectable are written off
        when identified.

1.9.2   Cash and cash equivalents
        Cash and cash equivalents comprise cash balances and
        call deposits. Cash equivalents are short-term, highly
        liquid investments that are readily convertible to known
        amounts of cash and which are subject to an insignificant
        risk of change in fair value. Cash and cash equivalents are
        subsequently measured at amortised cost.

1.9.3   Trade and other payables
        Trade and other payables are subsequently measured
        at amortised cost using the effective interest method.
        Any gains or losses on derecognition of trade and other
        payables are recognised in profit or loss.

1.9.4   Derivative financial instruments
        The Group utilises derivative financial instruments to hedge
        its exposure to interest rate risk arising from its financing
        activities. The Fund does not hold or issue derivative
        financial instruments for trading purposes. Derivatives are
        not designated as hedges for accounting purposes and
        are accounted for at fair value. After initial recognition, all
        derivative instruments are subsequently recorded in the
        statement of financial position at fair value, with gains and
        losses recognised in profit or loss.

1.9.5   Borrowings
        Long-term borrowings are subsequently measured
        at amortised cost using the effective interest method.
        Borrowings are classified as non-current unless they are
        repayable within 12 months.

1.10    Investment property
        Properties held by the Group which are held for rental
        income are classified as investment properties. Investment
        properties are initially recognised at cost including
        transaction costs. Investment properties are subsequently
        measured at fair value, with fair value gains and losses
        recognised in profit or loss. Investment property consists
        of land and buildings, installed equipment that is an
        integral part of the building and land held to earn rental
        income. The fair value of investment property also includes
        components relating to lease incentives and straight-line
        rental receivables. Costs incurred subsequent to initial
        acquisition are capitalised when it is probable that future
        economic benefits will flow to the Group those costs can
        be reliably measured.

        A property interest under an operating lease is classified
        and accounted for as an investment property when it is
        held to earn rental income. Any such property interest
        under an operating lease classified as investment property
        is carried at fair value.

        Should any properties no longer meet the Group's
        investment criteria and are sold, any profits or losses will
        be recognised in profit or loss.

        Investment property is maintained, upgraded and
        refurbished where necessary, in order to preserve or
        improve the capital value as far as it is possible to do so.
        Maintenance and repairs which neither materially add to
        the value of the properties nor prolong their useful lives are
        recognised in profit or loss as an expense.

        Independent valuations are obtained on a rotational basis,
        ensuring that every property is valued at least once every
        24 months by an external independent valuer.

        The directors value the remaining properties that have not
        been independently valued annually on an open market
        basis. Directors' valuations are prepared by considering
        the aggregate of the net annual rental receivable from the
        properties and where relevant, associated costs, using
        the discounted cash flow method and the capitalisation
        method. The directors are confident that their valuations
        accurately represent the fair value.

        Gains or losses on subsequent measurement or disposals
        of investment properties are recognised in profit or loss.
        Such gains or losses are excluded from the calculation and
        determination of distributable earnings.

1.11    Rental agreements
        A finance lease is a lease that transfers substantially all of
        the risks and rewards incidental to ownership of an asset.
        An operating lease is a lease other than a financial lease.

        The Group is party to numerous rental agreements in the
        capacity as lessor of the investment properties. All rental
        agreements are operating leases.

        Where classified as operating leases, rentals payable/
        receivable are charged/credited in the profit or loss on a
        straight-line basis over the lease term. Contingent rentals
        (if any) are accrued to the statement of profit or loss and
        other comprehensive income when incurred.
        Initial direct costs incurred in negotiating and arranging an
        operating lease are recognised in profit or loss over the
        term of the lease.

1.12    Provisions, contingent liabilities and contingent
        assets
        Provisions are liabilities of uncertain timing or amount,
        and are recognised as soon as the Fund has a legal or
        constructive obligation which will lead to an outflow of
        economic resources to settle the obligation as a result
        of a past event and a reliable estimate can be made of
        the amount of the obligation. Contingent assets and
        contingent liabilities are not recognised.
 
        Provisions are measured by at the best estimate of
        expenditure to settle the present obligation.

1.13    Taxation
        Under current income tax legislation, the Fund (as a
        REIT, which is a flow-through structure) is not subject to
        Australian income tax on any of the net income derived by
        the Fund, provided that its activities are limited to deriving
        rental income from real property directly or indirectly held
        by the Fund and deriving gains from sale of real property
        held for rental purposes; and it fully distributes its net
        income (subject to amounts permitted to be retained)
        to investors year-on-year during or within three months
        after the relevant income year.

        Furthermore, the Fund and management arrangements
        are structured to meet the required criteria to be classified
        as an Attribution Managed Investment Trust for Australian
        tax purposes. As an Attribution Managed Investment Trust,
        the Fund will be required to withhold tax in Australia at a
        concessional rate of 15% on distributions to individual and
        institutional investors in South Africa (including distributions
        of capital gains) to the extent that it is not a 'tax deferred
        distribution', a distribution of interest income or non-
        Australian sourced income.

        A 'tax deferred distribution' is the excess of cash
        distributed over the investors' proportionate share of the
        Australian taxable income of the Fund.

        As an Attribution Managed Investment Trust IPL as RE
        of the Fund will be required to withhold tax in Australia
        at 10% on Australian sourced interest income and 15%
        on other Australian sourced income to investors in South
        Africa.

        The New Zealand sourced income is subject to the
        corporate tax rate in New Zealand of 28%, and is not
        subject to Australian withholding tax.

1.14   Unit capital
1.14.1 Ordinary unit capital
       Units are classified as equity when the units are
       redeemable only at IPL's option, and any distributions
       are discretionary. The issued unit capital represents the
       amount of consideration received for units issued by IAPF.
       Transaction costs of an equity transaction are accounted
       for as a deduction from equity. All units are fully paid. The
       unitholders are entitled to receive distributions as declared
       from time-to-time and are entitled to one vote per unit at
       the annual general meeting of IAPF. All units rank equally
       with regard to IAPF's residual assets.

1.15    New accounting standards adopted by the
        Group
        The Group applied the following accounting standards
        amendments that became mandatory for the first time
        during the reporting period:

        IFRS 9
        accounting standards adopted by the Group

        IFRS 9 sets out requirements for recognising and
        measuring financial assets, financial liabilities and some
        contracts to buy or sell non-financial items. This standard
        replaces IFRS 139 Financial Instruments: Recognition and
        Measurement.

        (a   Classification - Financial assets and financial liabilities

        IFRS 9 contains a new classification and measurement
        approach for financial assets that reflects the business
        model in which assets are managed and their cash
        flow characteristics. IFRS 9 contains three principal
        classification categories for financial assets: measured at
        amortised cost, fair value through other comprehensive
        income (FVOCI) and fair value through profit and loss
        (FVTPL). The standard eliminates the existing IFRS 139
        categories of held to maturity, loans and receivables and
        available for sale. Loans and receivables are classified
        and measured at amortised cost. The Group holds these
        assets in order to collect contractual cash flows, and the
        contractual terms are solely payments of outstanding
        principal and interest on the principal outstanding.

        The standard requires all financial liabilities to be
        subsequently classified at amortised cost, except in
        certain circumstances, of which none apply to the Group.
        Accordingly, there is no change in the classification of the
        Group's payables and borrowings on adoption of IFRS 9.

        IFRS 15
        IFRS 15 applies to all contracts with customers to deliver
        goods or services as part of the entity's ordinary course
        of business excluding insurance contracts, financial
        instruments and leases, which are addressed by other
        standards. It replaces existing revenue recognition
        guidance, including IFRS 18 Revenue and IAS 11
        Construction Contracts and contains a single model that
        applies to contracts with customers and two approaches
        to recognising revenue: at a point in time or over time.
        The model features a contract-based give-step analysis of
        transactions to determine whether, how much and when
        revenue is recognised.

        (a) Classification and measurement of revenue
        
        Revenue is recognised over time if:
        
        -   The customer simultaneously receives and consumes
            the benefits as the entity performs;
        
        -   The customer controls the asset as the entity creates
            or enhances it; or
        
        -   The seller's performance does not create an asset for
            which the seller has an alternative use and there is a
            right to payment for the performance to date.
        
        Where the above criteria are not met, revenue is
        recognised at a point in time.

        In the notes to the financial statements, the Group has
        disaggregated income for the current and comparative
        financial period to disclose recoveries revenue. Based on
        the Group's assessment of when performance obligations
        are satisfied, there is no change in the timing of revenue
        recognition when comparing to the previous accounting
        policy, other than the change in terminology. Under IFRS
        15, recoveries revenue will be recognised over time.
        
        (b) Transition

        Changes in the accounting policies resulting from the
        adoption of IFRS 15 have been applied retrospectively.
        There has been no impact on the Group's previously
        reported financial position as a result of the adoption of
        IFRS 15.

1.16    Accounting standards applicable to the Group
        not yet effective
        This standard introduces a single, on-balance sheet
        accounting model for leases and is effective for annual
        reporting periods on or after 1 January 2019. A lessee
        recognises a right-of-use asset representing its obligation
        to make lease payments.

        Lessor accounting remains similar to the current standard
        - i.e. lessors continue to classify leases as finance or
        operating leases. At the Group operations involve leasing
        of investment properties, as a lessor, it is expected that the
        changes will have minimal impact to the Group.

1.17    Changes in accounting policy
        The Group has consistently applied the accounting
        policies set out in note 1 to all periods presented in these
        consolidated financial statements.

        There is no new standards and amendments to standards,
        including any consequential amendments to other
        standards has been adopted by the Group.

For the period ended 31 March                                                      
AUD'000                                                                                                2019           2018   
2.   Revenue                                                                                                                 
Contracted rental income                                                                             77 474         65 665   
Recoverable outgoings                                                                                11 065          9 786   
Revenue, excluding straight-line rental revenue adjustment                                           88 539         75 451   
Straight-line rental revenue adjustment                                                                 930          2 146   
                                                                                                     89 469         77 597 
                                                                                                       
For the period ended 31 March                                                                                                
AUD'000                                                                                                2019           2018   
3.   Property expenses                                                                                                       
Statutory expenses                                                                                  (5 876)        (3 405)   
Electricity                                                                                         (1 694)        (1 771)   
Insurance                                                                                           (1 142)          (549)   
Cleaning                                                                                            (1 264)        (1 005)   
Building management                                                                                 (2 277)        (1 979)   
Repairs and maintenance                                                                             (1 019)          (733)   
Amortisation of fitout expenses                                                                       (957)          (922)   
Tenant rechargeable expenditure                                                                       (724)          (815)   
Air-conditioning                                                                                      (814)          (626)   
Fire protection                                                                                       (432)          (401)   
Lift and escalators                                                                                   (444)          (358)   
Leasing fee                                                                                           (330)          (345)   
Other property expenses                                                                             (1 253)          (988)   
                                                                                                   (18 226)       (13 897) 
                       
                                                                                                     
For the period ended 31 March                                                                                                
AUD'000                                                                                                2019           2018   
4.   Other operating expenses                                                                                                
Asset management fee                                                                                (5 761)        (5 120)   
Fund operating costs                                                                                                         
Auditors' remuneration*                                                                               (331)          (303)   
Audit fee                                                                                             (203)          (210)   
Tax compliance fees                                                                                   (128)           (93)   
Directors' fees                                                                                       (101)          (101)   
Legal and consulting fees                                                                             (244)          (180)   
Other fund expenses                                                                                   (514)          (473)   
                                                                                                    (6 951)        (6 177)   

* All audit and tax services were provided by KPMG.                              


For the period ended 31 March                                                                    
AUD'000                                                                                                2019           2018   
5.   Fair value adjustments                                                                                                  
Fair value adjustments - investment property                                                         15 178         61 269   
Fair value adjustments - interest rate swaps                                                       (13 714)        (2 305)   
Fair value adjustments - foreign currency revaluation                                                 1 720          2 261   
Total fair value adjustment                                                                           3 184         61 225  
 
  
For the period ended 31 March                                                                                                
AUD'000                                                                                                2019           2018   
6.   Finance costs                                                                                                           
Interest paid on borrowings                                                                        (14 636)        10 700)   
Total finance costs                                                                                (14 636)        10 700)   
Refer to note 14 for details on borrowings                                                                                   
For the period ended 31 March                                                                                                
AUD'000                                                                                                2019           2018   
7.   Finance income                                                                                                          
Interest received from banks                                                                             94            117   
Total finance income                                                                                     94            117   
 
 
For the period ended 31 March                                                                                                
AUD'000                                                                                                2019           2018   
8.   Distribution per unit                                                                                                   
Profit for the period                                                                                53 099        108 205   
Less: Straight-line rental revenue adjustment                                                         (930)        (2 146)   
Fair value adjustments                                                                              (3 184)        61 225)   
Antecedent distribution                                                                                   -          3 216   
Distributable earnings                                                                               48 985         48 050   
Reconciliation of distribution per unit                                                                                      
Final distribution for the year to 31 March                                                                                  
Distributable earnings                                                                               48 985         48 050   
Less: interim distribution paid                                                                      24 198         23 723   
Final distribution (pre withholding tax)                                                             24 787         24 327   
Withholding tax paid/payable to the Australian Taxation Office                                      (2 036)        (1 705)   
Income tax paid/payable to the New Zealand Inland Revenue Office                                          -          (366)   
Final distribution (post withholding tax)                                                            22 751         22 256   
Units in issue at 31 March ('000)                                                                   478 802        478 802   
Final distribution per unit (cents) (pre withholding tax)                                              5.18           5.08   
Interim distribution per unit (cents) (pre withholding tax)                                            5.05           4.95   
Total distribution per unit (cents) (pre withholding tax)                                             10.23          10.03   
Final distribution per unit (cents) (post withholding tax)                                             4.75           4.65   
Interim distribution per unit (cents) (post withholding tax)                                           4.65           4.64   
Total distribution per unit (cents) (post withholding tax)                                             9.40           9.29 
  
Withholding tax                                                                                   
The blended withholding tax rate for the total distribution is 8.10834%.                          


For the period ended 31 March                                                        
AUD'000                                                                                                2019           2018   
9.   Earnings per unit                                                                                                       
Reconciliation of basic earnings to headline earnings                                                                        
Profit for the period                                                                                53 099        108 205   
Less: Net fair value adjustment - investment property                                              (15 178)       (61 269)   
Headline earnings attributable to unitholders                                                        37 921         46 936   

                                                                                                      Cents          Cents   
Basic and diluted earnings per unit                                                                   11.09          24.04   
Basic and diluted headline earnings per unit                                                           7.92          10.43   
Units in issue at the end of the year ('000)                                                        478 802        478 802   
Weighted average number of units in issue ('000)                                                    478 802        450 084
   
Reconciliation of weighted average number of units in issue:                                                                 
Units at the beginning of the year                                                                  478 802        435 588   
Share buy back ('000)                                                                                     -        (2 124)   
Rights offer ('000)                                                                                       -         16 620   

Headline earnings is profit for the period adjusted for fair value adjustments on investment property. Headline earnings are a
measure of the Fund's earnings based solely on operational activities and in the case of the Fund will exclude fair value adjustments
and profits or losses on sale of properties. As required by the JSE Listings Requirements headline earnings per unit is calculated
using Circular 4/2018.


For the period ended 31 March                                                                                                
AUD'000                                                                                                2019           2018   
10. Investment property                                                                                                      
Cost                                                                                                941 582        881 779   
Accumulated fair value adjustment                                                                   110 516         95 256   
Investment properties                                                                             1 052 098        977 035   
Straight-line rental revenue receivable                                                              10 669          9 661   
Carrying value                                                                                    1 062 767        986 696   
Movement in investment properties                                                                                            
Balance at beginning of year                                                                        986 696        779 350   
Acquisitions                                                                                         49 200        134 137   
Foreign currency revaluation on property                                                              2 515          3 745   
Acquisition costs and capital expenditure                                                             8 190          6 049   
Fair value adjustment on revaluation of investment properties                                        15 156         61 269   
Straight-line rental revenue adjustment                                                               1 010          2 146   
Carrying value at end of the year                                                                 1 062 767        986 696   

Property to the value of AUD 1 062.8mn is held as security under the syndicated debt facility currently drawn down to a value
of AUD 405.4 mn.

All of the investment properties located in New South Wales, Victoria, Western Australia, New Zealand, South Australia and
Queensland are held under freehold interests. All of the properties located in the Australian Capital Territory are held under leasehold
interests terminating in 2101. These are classified as operating leases.

Gains and losses recorded in profit or loss for recurring fair value measurements categorised within level 3 of the fair value hierarchy
amount to AUD 15.2 mn and are presented in profit and loss in the line item 'fair value adjustment'.

Refer to Note 22.3 for further disclosure regarding the fair value of investment property.


                                                                                                              Consolidated   
                                                                            Latest external valuation       carrying value   
Property Portfolio                                                                                                           
AUD'000                                                                     Date                Valuation             2019   
10. Investment property (continued)                                                                                          
Industrial Portfolio                                                                                                         
47 Sawmill Circuit, Hume ACT                                                30 September 2018      11 400           11 400   
57 Sawmill Circuit, Hume ACT                                                30 September 2018      10 350           10 350   
24 Sawmill Circuit, Hume ACT                                                30 September 2018       9 900            9 900   
44 Sawmill Circuit, Hume ACT                                                30 September 2018      11 300           11 300   
2-8 Mirage Road, Direk SA                                                   30 September 2018       9 250            9 250   
30-48 Kellar Street, Berrinba QLD                                           30 September 2018       8 350            8 350   
165 Newton Road, Wetherill Park NSW                                         30 September 2018      23 450           23 450   
24 Spit Island Close, Newcastle NSW                                         30 September 2018      10 000           10 000   
67 Calarco Drive, Derrimut VIC                                              30 September 2018       9 700            9 700   
66 Glendenning Road, Glendenning NSW                                        30 September 2018      25 600           25 900   
85 Radius Drive, Larapinta QLD                                              30 September 2018      18 000           18 000   
54 Miguel Road, Bibra Lake WA                                               30 September 2018      29 500           29 500   
24 Rodborough Road, Frenchs Forest NSW                                      30 September 2018      21 000           21 000   
6-8 and 10 Siddons Way, Hallam VIC                                          30 September 2018      22 350           22 350   
36-42 Hydrive Close, Dandenong South VIC                                    30 September 2018      19 450           19 450   
Office Portfolio                                                                                                             
449 Punt Road, Cremorne VIC                                                 31 March 2019          57 000           57 000   
35-49 Elizabeth Street, Richmond VIC                                        31 March 2019          93 000           93 000   
2404 Logan Road, Eight Mile Plains QLD                                      30 September 2018      20 000           20 000   
186 Reed Street, Greenway ACT                                               30 September 2018      28 200           28 200   
757 Ann Street, Fortitude Valley QLD                                        30 September 2018      85 000           85 000   
21-23 Solent Circuit, Baulkham Hills NSW                                    30 September 2018      59 000           59 000   
266 King Street, Newcastle NSW                                              30 September 2018      75 000           75 000   
113 Wicks Road, Macquarie Park NSW                                          30 September 2018      26 500           26 500   
324 Queen Street, Brisbane QLD                                              30 September 2018      75 500           75 500   
20 Rodborough Road, Frenchs Forest NSW                                      30 September 2018      61 000           61 000   
2 Richardson Place, North Ryde NSW                                          30 September 2018      90 000           90 000   
100 Willis Street, Wellington NZ*                                           30 September 2018     123 397          122 917   
24 Wormald Street, Symonston ACT                                            8 February 2019        29 750           29 750   
Total Investment Properties                                                                                      1 062 767   

*   Converted at spot rate of 1.04135 at 31 March 2019.
Refer to property selection and property portfolio disclosed on pages 16 to 20 of this report for further details of investment
properties held.

(A) Valuation basis
The basis of the valuation of investment properties is fair value. The fair values are based on market values, being the price that
would be received to sell an asset in an orderly transaction between market participants at the measurement date.

External valuations were conducted for all of the properties in the portfolio during the year. External valuations were conducted by
Colliers International, Urbis, Savills, Knight Frank, Janes Lang LaSalle, LandMark White and CBRE who are all registered as Certified
Practising Valuers with the Australian Property Institute.

The Fund determines a property's value within a range of reasonable fair value estimates and in making this assessment, considers
information from a variety of sources including:
- Current prices for comparable investment properties;
- Discounted cash flows based on estimates of future cash flows; and
- Capitalised income projections based on estimated net market income, and a capitalisation rate based on market analysis.
 
                                         
The key assumptions used are as follows:                                    
                                                                                                       2019          2018   
Capitalisation rate                                                                                   6.59%         6.70%   
Discount rate                                                                                         7.50%         7.62%   
Rental growth rate                                                                                    3.32%         3.18%   

The above are weighted average rates based on fair value.                   

(B) Uncertainty around property valuations
The fair value of investment property has been assessed to reflect market conditions at the end of the reporting period. While
this represents the best estimate of fair value as at the balance sheet date, future changes in key assumptions may mean that if
investment property is sold in the future the prices achieved may be higher or lower than the most recent valuations.

(C) Contractual obligations/capital commitments
At 31 March 2019 there were no significant contractual obligations or capital commitments relating to investment property
(31 March 2018: Nil).

(D) Leasing arrangements                                                                       
AUD'000                                                                                                2019          2018   
The Fund leases office and industrial properties under operating leases.                                                    
Contractual amounts due in terms of operating lease agreements                                                              
Less than 1 year                                                                                     85 224        82 399   
Between 1 and 5 years                                                                               241 271       240 112   
More than 5 years                                                                                   102 763        79 281   
                                                                                                    429 258       401 792   

Investment property comprises a number of commercial properties and industrial that are leased to third parties. All leases are
subject to with annual rent reviews that are fixed or indexed to consumer prices (CPI). Subsequent renewals are negotiated with the
lessee and historically, the average renewal period is 5 years. No contingent rents are charged.

(E) Direct operating expenses
During the year, all direct operating expenses related to income generating properties.

For the period ended 31 March                                                                                               
AUD'000                                                                                                2019          2018   
11. Trade and other receivables                                                                                             
Prepaid expenses                                                                                      2 384         2 176   
Capitalised incentives                                                                                  132           212   
Sundry debtors                                                                                        3 892         1 371   
                                                                                                      6 408         3 758   
For the period ended 31 March                                                                                               
AUD'000                                                                                                2019          2018   
12. Cash and cash equivalents                                                                                               
Cash held on call account                                                                             7 792         7 218   
Total cash and cash equivalents                                                                       7 792         7 218   


For the period ended 31 March                                                                                                
AUD'000                                                                                                2019          2018   
13. Contributed equity                                                                                                      
Issued                                                                                                                      
On establishment - 22 000 000 fully paid ordinary units; par value $1.00                             22 000        22 000   
On listing - 112 685 000 fully paid ordinary units; par value $1.00                                 112 685       112 685   
On completion of renounceable rights offer Oct 2014 - 111 896 298 fully paid ordinary units;                                
par value $1.09                                                                                     121 501       121 501   
On completion of renounceable rights offer Feb 2016 - 59 566 747 fully paid ordinary units;                                 
par value $1.01                                                                                      59 964        59 964   
On completion of renounceable rights offer Mar 2017 - 108 004 819 fully paid ordinary units;                                
par value $1.33                                                                                     143 462       143 462   
Distribution re-investment plan Nov 2015 - 6 393 331 fully paid ordinary units; par value $1.07       6 815         6 815   
Distribution re-investment plan Jun 2016 - 9 818 121 fully paid ordinary units; par value $1.22      12 008        12 008   
Distribution re-investment plan Dec 2016 - 5 223 526 fully paid ordinary units; par value $1.36       7 111         7 111   
Share buy back - 6 330 842 fully paid ordinary units; par value $1.26                               (8 000)       (8 000)   
On completion unit placement offer Nov 2017 - 49 545 454 fully paid ordinary units;                                         
par value $1.21                                                                                      60 055        60 055   
Fund establishment costs capitalised to contributed equity                                          (7 211)       (7 211)   
Antecedent distributions paid                                                                      (15 187)      (15 187)   
In issue at year end                                                                                515 203       515 203   

Refer to unitholder analysis included on pages 78 and 79 of this report for further details on unitholders.              


For the period ended 31 March                         Tranche expiry                                                        
AUD'000                                               date                Interest rate                2019          2018   
14. Borrowings                                                                                                              
Loans - secured - bank debt                                                                                                 
Westpac Facility - Tranche A - Restructured           10 December 2019    BBSY + 1.275%*                  -        48 240   
Westpac Facility - Tranche B - Restructured           31 March 2020       BBSY + 1.275%*                  -        45 000   
Westpac Facility - Tranche C - Restructured           29 April 2020       BBSY + 1.275%*                  -        15 000   
Westpac Facility - Tranche D - Restructured           20 August 2020      BBSY + 1.275%*                  -        15 500   
Westpac Facility - Tranche E - Restructured           16 October 2020     BBSY + 1.275%*                  -        28 000   
ANZ Facility - Tranche G                              30 June 2022        BBSY + 1.3500%*            20 000        20 000   
ANZ Facility - Tranche H                              01 December 2022    BBSY + 1.3500%*            75 000        75 000   
ANZ Facility - Tranche I                              07 March 2023       BBSY + 1.4500%*            19 000        21 000   
ANZ and Westpac Facility - Tranche J - Restructured   18 October 2022     BBSY + 1.4500%*                 -        30 000   
ANZ and Westpac Facility - Tranche K - Restructured   07 December 2022    BBSY + 1.5000%*                 -        45 880   
Westpac Facility - Tranche M                          28 September 2021   BBSY + 1.4500%*            50 000             -   
Westpac Facility - Tranche N                          28 March 2023       BBSY + 1.5500%*           101 740             -   
                                                      28 September                                                          
ANZ and Westpac Facility - Tranche O                  2023                BBSY + 1.6000%*           111 039             -   
ANZ Facility - Tranche P                              12 March 2020       BBSY + 1.1000%*            28 635             -   
Total long-term borrowings - secured                                                                405 414       343 620   
Capitalised loan establishment costs                                                                (1 616)       (1 189)   
Total value of interest-bearing borrowings                                                          403 798       342 431   
Movement in borrowings                                                                                                      
Balance at beginning of year                                                                        343 620       249 007   
Interest charged                                                                                     14 636        10 700   
Interest paid                                                                                      (14 636)      (10 700)   
Additional borrowing acquired                                                                        61 794        94 613   
Closing balance at the end of the year                                                              405 414       343 620   

*   Varies based on gearing levels.                                                                               

The Fund's LVR was 38.14% as at 31 March 2019 (31 March 2018: 34.83%).

At 31 March 2019 the approved facility limit of the loan facility was AUD 431.74mn with AUD 26.33mn undrawn.

The Fund's policy is to hedge at least 75% of interest rate risk. At year end, 77.5% of borrowings were hedged using interest rate
swaps, locking in a blended rate (including margin and line fees) of 3.75% for a weighted average 3.6 year term.

For the period ended 31 March                                                      
AUD'000                                                                                                2019          2018   
15. Trade and other payables                                                                                                
Security deposits                                                                                       757           640   
Income received in advance                                                                            2 389         3 514   
Other payables                                                                                        2 119         2 034   
Trade and other payables - non current                                                                5 265         6 187   
Accrued expenses                                                                                      2 228         1 750   
Trade creditors                                                                                         460           554   
Income received in advance                                                                            2 040         1 080   
GST payable                                                                                           1 551         1 407   
Other payables                                                                                          619         1 544   
Trade and other payables - current                                                                    6 898         6 335   


For the period ended 31 March                                                                                               
AUD'000                                                                                                2019          2018   
16. Reconciliation of cash flows from operating activities                                                                  
Profit for the period                                                                                53 099       108 205   
Adjusted for:                                                                                                               
Fair value adjustments - investment property                                                       (15 178)      (61 269)   
Fair value adjustments - derivatives                                                                 13 714         2 305   
Fair value adjustments - foreign currency revaluation                                               (1 720)       (2 261)   
Straight-line rental revenue adjustment                                                               (930)       (2 146)   
Working capital movement                                                                                                    
Change in trade and other receivables                                                               (1 935)       (1 268)   
Change in trade and other payables                                                                    (984)       (1 638)   
Distributions paid                                                                                 (48 186)      (45 179)   
Net cash from operating activities                                                                  (2 120)       (3 251)   


17. Related party transactions
    Responsible entity (RE)
    The RE of the Fund is IPL. IPL is a wholly owned subsidiary of IAPHPL

    Manager
    The Manager of the Fund is IPML. IPML is a wholly owned subsidiary of IAPHPL. IPML provides fund management services and
    property management services to the Fund.

    IPL's and IPML's ultimate Australian parent entity is IAPHPL. Its ultimate parent is Investec Plc, incorporated in the United Kingdom.

    Investec Plc and Investec Limited and their subsidiary companies together comprise the Investec group of companies (Referred to
    as the Investec Group).

    From time to time, the Fund enters into transactions or arrangements with Investec Group. These transactions are described below.
    These are entered into on normal commercial terms.

    Transactions with related parties

For the period ended 31 March                                           
AUD'000                                                                                               2019         2018   
Payments to Investec Group and its subsidiaries:                                                                          
Investec Property Management Pty Limited - subsidiary                                                                     
Asset management fee                                                                                 5 761        5 120   
Property management fee*                                                                             1 306        1 282   
Leasing fee                                                                                              -          494   
Investec Bank Limited - parent company                                                                                    
Sponsor fee                                                                                             24           29   
Capital raising fees and listing costs                                                                  63          473   
Investec Bank plc - parent company                                                                                        
Interest on swaps                                                                                        -          896   
Investec Australia Limited - subsidiary                                                                                   
Interest on swaps                                                                                      828          393   
Amounts owing to related parties                                                                                          
Investec Property Management Pty Limited - subsidiary                                                                     
Asset management fee payable                                                                           547          433   

*    IPML has been contracted to perform property management services. IPML has sub-contracted this to third party property managers who receive
     this fee from IPML.
**   Asset management fee is billed monthly and payable within 30 days. Outstanding balances with related parties are to be settled within one month
     of the reporting date. No security has been given.

     Key management personnel (KMP)
     IAPF does not employ any personnel in its own right. However it is required to have an incorporated RE to manage its activities.
     The RE is considered the KMP of the Fund. Furthermore IPL as RE of the Fund has sub-contracted the management of IAPF to the
     Manager which is also considered KMP. The directors of IPL are Richard Longes (Chairperson), Sam Leon, Stephen Koseff, Graeme
     Katz, Sally Herman and Hugh Martin. The directors of the Manager are Graeme Katz, Zach McHerron and Kristie Lenton.

     KMP compensation
     Directors of IPL who are employees or directors of entities within the Investec Group are not remunerated for their services as
     directors of IPL. The remuneration of any independent, non-associated and non-executive director appointed to the Board is
     limited to the reimbursement of reasonable expenses incurred by such person for purposes of attending Board meetings and the
     appropriate director's fees, unless the IPL determines otherwise. In respect of the independent, non-associated and non-executive
     directors, fees and expenses are reimbursed out of the Fund.

     Individual directors' compensation disclosures
     Information regarding individual directors' compensation disclosure is provided in the Directors' Report.

     Movements in securities
     The movement during the reporting period in the number of ordinary units in IAPF held directly, indirectly or beneficially, by each key
     management person, including their related parties, is as follows:

                                                                                   Held at                           Held at   
                                                                               31 Mar 2018   Purchases   Sales   31 Mar 2019   
     Directors                                                                                                                 
     Sam Leon                                                                    4 000 000           -       -     4 000 000   
     Graeme Katz                                                                   229 296           -       -       229 296   


     There have been no changes in these holdings since the end of the reporting period.

18.  Group entities
     The consolidated financial statements incorporate the assets, liabilities and results of the following controlled entities in accordance
     with the accounting policy described in Note 1.2.
     All subsidiaries are 100% owned trusts and controlled by the group with no restrictions.
     IAPF enters into transactions with its wholly owned trusts. These transactions mainly involve the payment of distributions between
     trusts and lending of funds between the trusts. Intertrust loans are repayable upon demand, unsecured and non-interest bearing.

     Name of entity                                 Country of incorporation          Class of units          Equity holding   
     Investec Australia Hold Trust No. 1            Australia                         Ordinary                          100%   
     Investec Australia Sub Trust No. 1             Australia                         Ordinary                          100%   
     Investec Australia Sub Trust No. 2             Australia                         Ordinary                          100%   
     Investec Australia Sub Trust No. 3             Australia                         Ordinary                          100%   
     Investec Australia Sub Trust No. 4             Australia                         Ordinary                          100%   
     Investec Australia Sub Trust No. 5             Australia                         Ordinary                          100%   
     Investec Australia Sub Trust No. 6             Australia                         Ordinary                          100%   
     Investec Australia Sub Trust No. 7             Australia                         Ordinary                          100%   
     Investec Australia Sub Trust No. 8             Australia                         Ordinary                          100%   
     Investec Australia Sub Trust No. 9             Australia                         Ordinary                          100%   
     Investec Australia Sub Trust No. 10            Australia                         Ordinary                          100%   
     Investec Australia Sub Trust No. 11            Australia                         Ordinary                          100%   
     Investec Australia Sub Trust No. 12            Australia                         Ordinary                          100%   
     Investec Australia Sub Trust No. 13            Australia                         Ordinary                          100%   
     Investec Australia Sub Trust No. 14            Australia                         Ordinary                          100%   
     Investec Australia Sub Trust No. 15            Australia                         Ordinary                          100%   
     Investec Australia Sub Trust No. 16            Australia                         Ordinary                          100%   
     Investec Australia Sub Trust No. 17            Australia                         Ordinary                          100%   
     Investec Australia Sub Trust No. 18            Australia                         Ordinary                          100%   
     Investec Australia Sub Trust No. 19            Australia                         Ordinary                          100%   
     Investec Australia Sub Trust No. 20            Australia                         Ordinary                          100%   
     Investec Australia Sub Trust No. 21            Australia                         Ordinary                          100%   


For the period ended 31 March                                                                                    
AUD'000                                                                                                 2019            2018   
19. Parent entity disclosures                                                                                                  
As at, and throughout the period ending 31 March 2019 the parent of the Group was Investec                                     
Australia Property Fund.         
                                                                                              
Result of parent entity                                                                                                        
Profit for the period                                                                                 54 378          49 660   
Total comprehensive income for the period                                                             54 378          49 660   
Financial position of parent entity at period end                                                                              
Current assets                                                                                         4 415             918   
Total assets                                                                                         596 459         589 516   
Current liabilities                                                                                    6 205           1 485   
Total liabilities                                                                                     77 175          71 009   
Net assets                                                                                           519 284         518 507   
Total equity of parent entity comprising of:                                                                                   
Contributed equity                                                                                   515 203         515 203   
Retained earnings                                                                                      4 081           3 304   
Total equity                                                                                         519 284         518 507   


For the period ended 31 March                                                                                                  
AUD'000                                                                                                 2019            2018   
20. Net asset value                                                                                                            
Units in issue at end of year                                                                        478 802         478 802   
Net asset value per unit (AUD)                                                                          1.30            1.29   

Net asset value per unit is calculated by dividing the net asset value (being total assets minus total liabilities) by the units in issue at
year end.

21. Subsequent events
    During the year the Fund received unitholder approval to pursue an ASX listing and associated capital raising. A product disclosure
    statement dated on or around the same date as this report will be issued in relation to ASX listing and associated capital raising.

    There is no other item, transaction or event of a material and unusual nature likely, in the opinion of IPL, to affect significantly the
    operations of the Fund, the results of those operations, or the state of affairs of the Fund, in future financial years.

                                                                                                      Non-                                
As at 31 March 2019                                                              Measured        financial      Amortised                 
AUD'000                                                                     at fair value      instruments           cost         Total   
22. Financial risk and capital management                                                                                                 
22.1   Total financial and non-financial                                                                                                  
assets and liabilities                                                                                                                    
The table below sets out the Fund's accounting classification of                                                                          
each class of financial and non-financial asset and liability and                                                                         
their fair values at 31 March 2019       
                                                                                                 
ASSETS                                                                                                                                    
Non-current assets                                                                                                                        
Investment property                                                                     -        1 062 767              -     1 062 767   
Financial instrument held at fair value                                             6 444                -              -         6 444   
Current assets                                                                                                                            
Cash and cash equivalents                                                               -                -          7 792         7 792   
Trade and other receivables                                                             -                -          6 408         6 408   
Total assets                                                                        6 444        1 062 767         14 200     1 083 411   
LIABILITIES                                                                                                                               
Non-current liabilities                                                                                                                   
Long-term borrowings                                                                    -                -        375 163       375 163   
Financial instruments held at fair value                                           21 186                -              -        21 186   
Trade and other payables                                                                -                -          5 265         5 265   
Current liabilities                                                                                                                       
Borrowings                                                                              -                -         28 635        28 635   
Trade and other payables                                                                -                -          6 898         6 898   
Unitholders for distributions                                                           -                -         24 787        24 787   
Total liabilities                                                                  21 186                -        440 748       461 934   


                                                                                                      Non-                              
As at 31 March 2018                                                              Measured        financial      Amortised               
AUD'000                                                                     at fair value      instruments           cost       Total   
22. Financial risk and capital management                                                                                               
(continued)                                                                                                                             
22.1   Total financial and non-financial                                                                                                
assets and liabilities (continued)                                                                                                      
The table below sets out the Fund's accounting classification of                                                                        
each class of financial and non-financial asset and liability and                                                                       
their fair values at 31 March 2018                                                                                                      
ASSETS                                                                                                                                  
Non-current assets                                                                                                                      
Investment property                                                                     -          986 696              -     986 696   
Financial instrument held at fair value                                               967                -              -         967   
Current assets                                                                                                                          
Cash and cash equivalents                                                               -                -          7 218       7 218   
Trade and other receivables                                                             -                -          3 758       3 758   
Total assets                                                                          967          986 696         10 976     998 639   
LIABILITIES                                                                                                                             
Non-current liabilities                                                                                                                 
Long-term borrowings                                                                    -                -        342 431     342 431   
Financial instruments held at fair value                                            1 996                -              -       1 996   
Trade and other payables                                                                -                -          6 187       6 187   
Current liabilities                                                                                                                     
Trade and other payables                                                                -                -          6 335       6 335   
Unitholders for distributions                                                           -                -         24 327      24 327   
Total liabilities                                                                   1 996                -        379 280     381 276   

       1. In all cases the amortised cost approximates fair value on the basis that:
       -  the amortised cost reflects known credit risk; or
       -  credit risk is not significant and the financial assets and financial liabilities are either short term or subject to market based
          variable interest.

22.2   Fair value hierarchy - financial instruments
       In the case of financial instruments whose carrying amount is not the same as their fair value. The fair value has been calculated
       as follows:

       a. The fair value of "long term borrowings at amortised cost" has been estimated by discounting effective interest rate at each
          year end.

       For financial instruments whose carrying amount is equivalent to their fair value, the measurement processes used are defined
       as follows:

       Level 1 - quoted prices (unadjusted) in active markets for identical assets or liabilities

       Level 2 - inputs other than quoted prices included within Level 1 that are observable for the assets and liabilities, either directly
                 (i.e. as prices) or indirectly (i.e. derived from prices)

       Level 3 - inputs for the assets and liabilities that are not based on observable market data (unobservable inputs).


                                                                                                            Fair value             
Fair value and carrying amount                                                     Carrying                                           
AUD'000                                                                              amount   Level 1   Level 2   Level 3     Total   
For the year ended 31 March 2019                                                                                                      
Financial assets not measured at fair value                                                                                           
Cash and cash equivalents                                                             7 792         -         -         -         -   
Trade and other receivables                                                           6 408         -         -         -         -   
                                                                                     14 200         -         -         -         -   
Financial assets not measured at fair value                                                                                           
Interest rate swaps                                                                   6 444         -     6 444         -     6 444   
Financial instruments held at fair value                                              6 444         -     6 444         -     6 444   
Financial liabilities not measured at fair value                                                                                      
Trade and other payables                                                             36 950         -         -         -         -   
Long-term borrowings                                                                403 798         -   378 989         -   378 989   
                                                                                    440 748         -   378 989         -   378 989   
Financial liabilities measured at fair value                                                                                          
Interest rate swaps                                                                  21 186         -    21 186              21 186   
                                                                                     21 186         -    21 186         -    21 186   
For the year ended 31 March 2018                                                                                                      
Financial assets not measured at fair value                                                                                           
Cash and cash equivalents                                                             7 218         -         -         -         -   
Trade and other receivables                                                           3 758         -         -         -         -   
                                                                                     10 976         -         -         -         -   
Financial assets not measured at fair value                                                                                           
Interest rate swaps                                                                     967         -       967         -       967   
                                                                                        967         -       967         -       967   
Trade and other payables                                                             36 849                                           
Long-term borrowings                                                                342 431         -   327 983         -   327 983   
                                                                                    379 280         -   327 983         -   327 983   
Financial liabilities measured at fair value                                                                                          
Interest rate swaps                                                                   1 996         -     1 996         -     1 996   
                                                                                      1 996         -     1 996         -     1 996   


b. Details of changes in valuation techniques
There have been no significant changes in valuation techniques during the year under review.

c. Significant transfers between level 1, level 2 and level 3
There have been no significant transfers between level 1, level 2 and level 3 during the period.

Derivative financial instruments consist of interest rate hedging instruments. Interest rate hedging instruments are valued based on
broker quotes and are tested for reasonableness by discounting future cash flows using an observable market interest rate curve at
the dates when the cash flows will take place.

22.3   Fair value hierarchy - investment property
       For all investment property that is measured at fair value, the current use of the property is considered the highest and best use.

       Properties are valued under the income capitalisation method and DCF method.

       Under the income capitalisation method a property's fair value is estimated based on the normalised net operating income
       generated by the property, which is divided by the capitalisation rate.

       Under the DCF method a property's fair value is estimated using explicit assumptions about the benefits and liabilities of ownership
       over the asset's life including an exit or terminal value. This involves the projection of a series of cash flows and to this an
       appropriate, market-derived discount rate is applied to establish the present value of the income stream.

       Valuation techniques used to derive level 3 fair values
       For all classes of investment property the significant unobservable inputs listed below are used in the income capitalisation method
       to determine the fair value measurement at the end of the reporting period.

Significant unobservable inputs       Relationship between unobservable inputs and fair value measurement                             
Net passing rent                      Increases/(decreases) in net passing rent would increase/(decrease) estimated fair value        

Gross market rent                     Increases/(decreases) in gross market rent would increase/(decrease) estimated fair             
                                      value                                                                                           

Net market rent                       Increases/(decreases) in net market rent would increase/(decrease) estimated fair value         

Capitalisation rate                   Increases/(decreases) in the capitalisation rate would (decrease)/increase estimated fair       
                                      value                                                                                           

Discount rate                         Increases/(decreases) in the discount rate would (decrease)/increase estimated fair value       

Terminal yield                        Increases/(decreases) in the terminal yield would result in (decreases)/increases in the        
                                      estimated fair value                                                                            

The table above includes the following descriptions and definitions relating to key unobservable inputs made in determining       
fair value:                                                                                                                           

Net passing rent                      The contracted amount for which a property or space within a property is leased at the          
                                      time of the valuation.  In a net rent, the owner recovers outgoings from the tenant on a        
                                      pro rata basis (where applicable).                                                              

Gross market rent                     The gross rent at which space could be let in the market conditions prevailing at the date      
                                      of valuation.                                                                                   

Net market rent                       The net rent at which space could be let in the market conditions prevailing at the date of     
                                      valuation. In a net rent, the owner recovers outgoings from the tenant on a pro-rata basis      
                                      (where applicable).                                                                             

Capitalisation rate                   The rate at which net market income is capitalised to determine the value of a property.        
                                      The rate is determined with regards to market evidence.                                         

Discount rate                         The rate of return used to convert a monetary sum, payable or receivable in the future,         
                                      into present value. Theoretically it should reflect the opportunity cost of capital, that is,   
                                      the rate of return the capital can earn if put to other uses having similar risk The rate is    
                                      determined with regards to market evidence.                                                     

Terminal yield                        The capitalisation rate used to convert income into an indication of the anticipated value      
                                      of the property at the end of the holding period when carrying out a discounted cash flow       
                                      calculation. The rate is determined with regards to market evidence.                            

The following significant unobservable inputs have been considered to determine the fair value of measurement at the end of the
reporting year.

a. Expected market rental growth weighted average 3.32%.
b. Void periods average six months after the end of each lease.
c. Void periods average six months after the end of each lease.
d. Weighted average cap rate of 6.59%.

Generally, a change in the assumption made for the capitalisation rate is accompanied by a directionally similar change in the
terminal yield. The capitalisation rate forms part of the income capitalisation approach and the terminal yield forms part of the
DCF approach.

When calculating the income capitalisation approach, the net market rent has a strong interrelationship with the adopted
capitalisation rate given the methodology involves assessing the total net market income receivable from the property and
capitalising this in perpetuity to derive a capital value.

When assessing a DCF, the discount rate and terminal yield have a strong interrelationship in deriving at a fair value given the
discount rate will determine the rate in which the terminal value is discounted to the present value.

                                                                           Measured at fair value                       
                                                                                                                   Total gain or   
                                                                                                                   (loss) in the   
For the year ended 31 March 2019                                                                                       period in   
AUD'000                                                          Level 1              Level 2        Level 3      profit or loss   
Total assets                                                                                                                       
Investment property                                                                                                                
Office                                                                 -                    -        822 867              12 301   
Industrial                                                             -                    -        239 900               2 855   
Total non-financial assets                                             -                    -      1 062 767              15 156   

                                                                           Measured at fair value                       
                                                                                                                   Total gain or   
                                                                                                                   (loss) in the   
For the year ended 31 March 2018                                                                                       period in   
AUD'000                                                          Level 1              Level 2        Level 3      profit or loss   
Total assets                                                                                                                       
Investment property                                                                                                                
Office                                                                 -                    -        770 922              51 190   
Industrial                                                             -                    -        215 774              10 079   
Total non-financial assets                                             -                    -        986 696              61 269   

a. Details of changes in valuation techniques
There have been no significant changes in valuation techniques during the year under review.

b. Significant transfers between level 1, level 2 and level 3
There have been no transfers between hierarchy levels.

All gains and losses recorded in profit or loss for recurring fair value measurements categorised within level 3 of the fair value
hierarchy are attributable to changes in unrealised gains or losses relating to investment property held at the end of the
reporting period.

Refer to the reconciliation of investment property provided under note 10 which facilitates full IFRS 13 compliance in combination
with the disclosure in this note.

22.4   Other financial risk management considerations
       The financial instruments of the Fund consist mainly of cash and cash equivalents, including deposits with banks, borrowings,
       derivative instruments, trade and other receivables and trade and other payables. The Fund purchases or issues financial
       instruments in order to finance operations and to manage the interest rate risks that arise from these operations and the source
       of funding.

       The Fund has exposure to the following risks from its use of financial instruments:
       - credit risk
       - liquidity risk
       - market risk
       
       The Board has overall responsibility for the establishment and oversight of the Fund's risk management framework. The Board has
       established the audit and risk committee, which is responsible for developing and monitoring the Fund's risk management policies.
       The audit and risk committee reports regularly to the Board on its activities.

       The Fund's risk management policies are established to identify and analyse the risks faced by the Fund, to set appropriate risk
       limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to
       reflect changes in market conditions and the Fund's activities.

       The audit and risk committee oversees how management monitors compliance with the Fund's risk management policies and
       procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Fund. The audit and
       risk committee is assisted in its oversight role by Investec Internal Audit, which undertake both regular and ad hoc reviews of risk
       management controls and procedures, the results of which are reported to the audit and risk committee.

22.5   Credit risk
       Credit risk is the risk of financial loss to the Fund if a client or counterparty to a financial instrument fails to meet its contractual
       obligations, and arises principally from cash and cash equivalents, as well as trade and other receivables. There is no significant
       concentration of credit risk as exposure is spread over a large number of counterparties.
       a. Exposure to credit risk
       The carrying amount of financial assets represents the maximum credit exposure.
       The Fund applies the lifetime ECL model to manage the credit risk of financial assets carried at amortised cost in accordance with
       the accounting policy described in Note 1.9.1.

22.6   Market risk
       a. Interest rate risk
       The Fund is exposed to interest rate risk and adopts a policy of ensuring that at least 75% of its exposure to changes in interest
       rates on borrowings is on a fixed basis. This is achieved by entering into variable for fixed rate swap instruments. All such
       transactions are carried out within the guidelines set by the audit and risk committee. As a consequence, the Fund is exposed
       to fair value interest rate risk in respect of the fair value of its interest rate financial instruments, which will not have an impact on
       distributions. Short-term receivables and payables and investments are not directly exposed to interest rate risk.
       At 31 March 2019, 77.5% of the Fund's interest rate exposure was hedged. Therefore, for the year ended 31 March 2019, a
       1% increase/decrease in interest rates on the variable rate borrowings would have an immaterial impact on the Fund's profit,
       assuming all other variables remain constant.

       b. Liquidity risk
       Liquidity risk is the risk that the Fund will not be able to meet its financial obligations as they fall due. The Fund's policy is to seek to
       minimise its exposure to liquidity risk by balancing its exposure to interest rate risk and to refinancing risk. In effect the Fund seeks to
       borrow for as long as possible at the lowest acceptable cost. The Fund regularly reviews the maturity profile of its financial liabilities
       and will seek to avoid concentration of maturities through the regular replacement of facilities, and by using a selection of maturity
       dates.

       The tables below set out the maturity analysis of the Fund's financial liabilities based on the undiscounted contractual cash flows.

For the year ended                                                                                                                
31 March 2019                                      Within 1                                     Over 5                 Carrying   
AUD'000                                                year     1 - 2 years     2 - 5 years      years       Total        value   
Long-term borrowings(1)                              42 144          12 697         398 448          -     453 289      403 798   
Trade and other payables                              6 898           1 740             893      2 631      12 162       12 162   
Distributions payable                                24 787               -               -          -      24 787       24 787   
Total liabilities                                    73 829          14 437         399 341      2 631     490 238      440 747   
For the year ended                                                                                                                
31 March 2018                                      Within 1                                     Over 5                 Carrying   
AUD'000                                                year     1 - 2 years     2 - 5 years      years       Total        value   
Long-term borrowings(1)                              11 103         103 880         264 408          -     379 391      342 431   
Trade and other payables                              6 335           2 148           1 773      2 266      12 522       12 522   
Distributions payable                                24 327               -               -          -      24 327       24 327   
Total liabilities                                    41 765         106 028         266 181      2 266     416 240      379 280   

(1) Cash flows in relation to long-term borrowings take into account interest payments and the effect of interest rate swaps.

Cash flows are monitored on a monthly basis to ensure that cash resources are adequate to meet the funding requirements of the
Fund. Subsequent to year end in terms of covenants with its lenders, the nominal value of interest-bearing borrowings may not
exceed 50% of the value of investment property (including investment property reclassified as held for sale):

For the year ended 31 March                                                                              
AUD'000                                                                                                       2019         2018   
Value of investment property                                                                             1 062 767      986 696   
Carrying value of interest bearing borrowing                                                               405 414      343 620   
Current ratio of interest bearing borrowings to value of investment property (%)                             38.14        34.83   


22.7   Derivatives
       Derivative instruments are used to hedge the Fund's exposure to any increases in interest rates on variable rate loans. Interest rate
       swap contracts are entered into whereby the Fund hedges out its variable rate obligation to provide a maximum fixed rate obligation.
       Details of the interest rate fixed for variable swap instruments are as follows:

                                                        Amount                                                       Fixed rate   
       Financial institution                           AUD'000             Start date                End date                 %   
       31 March 2019                                                                                                              
       Investec Bank plc                                30 435           25 June 2016        25 February 2024             2.44%   
       Investec Bank plc                                60 870           25 June 2016        25 February 2026             2.57%   
       Investec Bank plc                                30 435           25 June 2016        25 February 2025             2.51%   
       Investec Bank plc                                55 000       01 December 2016        25 December 2023             2.18%   
       Westpac Banking Corporation                      20 000          01 March 2017           01 March 2022             2.35%   
       Australia and New Zealand Banking Group          25 000        20 October 2017         20 October 2024             2.46%   
       Australia and New Zealand Banking Group          12 500        20 October 2017         20 October 2025             2.54%   
       Australia and New Zealand Banking Group          12 500        20 October 2017         20 October 2027             2.68%   
       Westpac Banking Corporation                      67 303       11 December 2017        12 December 2024             2.30%   
       Westpac Banking Corporation                      55 000          14 March 2019        25 December 2023             2.38%   
       Westpac Banking Corporation                      30 435          14 March 2019        25 February 2024             2.41%   
       Westpac Banking Corporation                      30 435          14 March 2019        25 February 2025             2.53%   
       Westpac Banking Corporation                      60 870          14 March 2019        25 February 2026             2.66%   
       Westpac Banking Corporation                      20 000          14 March 2019           01 March 2022             2.00%   
       Westpac Banking Corporation                      12 500          14 March 2019         20 October 2025             2.61%   
       Westpac Banking Corporation                      25 000          14 March 2019         20 October 2024             2.49%   
       Westpac Banking Corporation                      12 500          14 March 2019         20 October 2027             2.81%   


22.8   Capital management
       In terms of its constitution, the Group's gearing ratio must not exceed 60%. The Fund is funded partly by unit capital and partly by
       external borrowings.

       In terms of its covenants entered into during the year, the Group is committed to a maximum value of external borrowings of 50% of
       the value of investment property and investment assets. In practice, the Group aims to keep gearing levels between 30% and 40%
       over the long term. At 31 March 2019, the nominal value of borrowings was equal to 38.1% of the value of investment property.

       The Board's policy is to maintain a strong capital base, comprising its unitholders' interest, so as to promote investor, creditor and
       market confidence and to sustain future development of the business. It is the Fund's stated purpose to deliver medium to long-
       term sustainable growth in distributions per unit. Distributable income is distributed on a six monthly basis. The Board monitors the
       level of distributions to unitholders. There were no changes in the Fund's approach to capital management during the year. The Fund
       is not subject to externally imposed capital requirements.

DISTRIBUTION ANNOUNCEMENT

Final distribution
Notice is hereby given of a final distribution declaration number 11 of:
-   5.17708 AUD cents per unit pre-WHT
-   4.75180 AUD cents per unit post-WHT

for the six months ended 31 March 2019. Tax of 0.42528 AUD cents or 8.21465% per unit will be withheld from the distribution paid to non-
Australian unitholders.

The salient dates relating to the distribution are as follows:

                                                                                                2019   
Exchange rate to convert the distribution to ZAR and announced on SENS(1) by 11h00    Monday, 13 May   
Last day to trade cum distribution                                                   Tuesday, 21 May   
Units to trade ex distribution                                                     Wednesday, 22 May   
Distribution amount transferred to South Africa                                       Friday, 24 May   
Record date                                                                           Friday, 24 May   
Distribution posted/paid to certificated unitholders                                  Monday, 27 May   

(1)  Exchange rate calculated on Monday, 13 May 2019.
     Units may not be dematerialised or rematerialised between commencement of trade Wednesday, 22 May 2019 and close of trade on Friday, 24 May 2019, both
     dates inclusive.

This distribution includes a "Fund Payment" amount of 2.87611 AUD cents per unit, pursuant to Subdivision 12-H of Schedule 1 of the
Taxation Administration Act 1953 and relates to the period ending 31 March 2019.

The Fund declares that it is an Attribution Managed Investment Trust for the purposes of 12-H of Schedule 1 of the Taxation Administration
Act 1953, in respect of the income year ended 31 March 2019.

                                                                                                                                  Total distribution   
Fund payment (subject to fund payment withholding)                                                                                           2.87611   
Interest income (subject to other non-resident withholding)                                                                                  0.13138   
Foreign income (subject to New Zealand corporate tax)                                                                                        0.96321   
Tax deferred                                                                                                                                 1.20638   
Total cash distribution                                                                                                                      5.17708   

The above information has been included in the notice solely to assist other entities with Australian withholding tax obligations that may arise   
in respect of any amounts distributed to non-Australian residents.                                                                                     

Special distribution
Notice is hereby given of a special distribution declaration number 12 of:
-   1.59380 AUD cents per unit pre-WHT
-   1.45928 AUD cents per unit post-WHT

for the period from 1 April 2019 to 27 May 2019. Tax of 0.13452 AUD cents or 8.43980% per unit will be withheld from the distribution paid
to non-Australian unitholders. The special distribution relates to the period from 1 April 2019 to 27 May 2019 being the period prior to the
proposed ASX listing and allotment of new units under the associated capital raise. For further information on the ASX listing and where to
obtain a product disclosure statement in connection with the capital raising, please see page 88 of this report.

The salient dates relating to the distribution are as follows:

                                                                                                2019   
Exchange rate to convert the distribution to ZAR and announced on SENS1 by 11h00      Monday, 13 May   
Last day to trade cum distribution                                                   Tuesday, 21 May   
Units to trade ex distribution                                                     Wednesday, 22 May   
Distribution amount transferred to South Africa                                       Friday, 24 May   
Record date                                                                           Friday, 24 May   
Distribution posted/paid to certificated unitholders                                  Monday, 27 May   


(1)  Exchange rate calculated on Monday, 13 May 2019
     Units may not be dematerialised or rematerialised between commencement of trade Wednesday, 22 May 2019 and close of trade on Friday, 24 May 2019, both
     dates inclusive.

This distribution includes a "Fund Payment" amount of 1.08026 AUD cents per unit, pursuant to Subdivision 12-H of Schedule 1 of the
Taxation Administration Act 1953 and relates to the period ending 31 March 2020.

The Fund declares that it is an Attribution Managed Investment Trust for the purposes of 12-H of Schedule 1 of the Taxation Administration
Act 1953, in respect of the income year ended 31 March 2020.

                                                                                                                                Total distribution   
Fund payment (subject to fund payment withholding)                                                                                         1.08026   
Interest income (subject to other non-resident withholding)                                                                                0.00000   
Foreign income (subject to New Zealand corporate tax)                                                                                      0.00015   
Tax deferred                                                                                                                               0.51339   
Total cash distribution                                                                                                                    1.59380 
  
The above information has been included in the notice solely to assist other entities with Australian withholding tax obligations that may arise   
in respect of any amounts distributed to non-Australian residents.                                                                                   

General unitholder tax information
The Fund and its management arrangements are structured to meet the required criteria to be classified as an Attribution Managed
Investment Trust for Australian tax purposes. As an Attribution Managed Investment Trust, IPL as RE of the Fund will be required to withhold
tax on Australian sourced income at a concessional rate of 15% on distributions to individual and institutional unitholders in South Africa.

The New Zealand sourced income is subject to the corporate tax rate in New Zealand of 28%, and is not subject to Australian withholding
tax.

The effect of these taxes on the Fund's distribution for the period from 1 October 2018 to 31 March 2019 has been reduced to 8.21465%,
equivalent to 0.42528 AUD cents per unit, through certain deductions such as depreciation. Thus, tax of 0.42528 AUD cents per unit will be
withheld from the distribution accruing to unitholder and will be paid to the Australian Taxation Office for Australian sourced income and the
New Zealand Inland Revenue Office for New Zealand sourced income.

The effect of these taxes on the Fund's distribution for the period from 1 April 2019 to 27 May 2019 has been reduced to 8.43980%,
equivalent to 0.13452 AUD cents per unit, through certain deductions such as depreciation. Thus, tax of 0.13452 AUD cents per unit will be
withheld from the distribution accruing to unitholder and will be paid to the Australian Taxation Office for Australian sourced income and the
New Zealand Inland Revenue Office for New Zealand sourced income.

South African unitholder tax implications
The distributions are regarded as a foreign distribution for South African unitholders.

The distributions comprise gross income, and are to be taxed as such, in the hands of South African investors. The pre tax distributions
are to be included in an investors' taxable income and subject to normal tax in full. Tax paying unitholders will be able to claim a rebate
equivalent to 8.21465% per unit for the distribution for the period 1 October 2018 to 31 March 2019 and 8.43980% per unit for the
distribution for the period 1 April 2019 to 27 May 2019 against tax paid in Australia and New Zealand. Non-tax paying unitholders will not be
entitled to claim a rebate.

By order of the Board


Investec Property Limited
Company Secretary
3 May 2019

Sponsor
Investec Bank Limited



Date: 03/05/2019 07:05:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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