ASX ANNOUNCEMENT

27 June 2013

FOLKESTONE SUCCESSFULLY COMPLETES SECOND UNLISTED FUND CAPITAL RAISING

Folkestone Funds Management (Folkestone) is pleased to announce that the Folkestone Real Estate
Income Fund at Wollongong (Fund) closed for applications approximately 50 per cent oversubscribed.
As a result, Folkestone has increased the amount of equity raised by $1.0 million, from $14.5 million to
$15.5 million, to assist in satisfying part of this excess demand. The forecast FY14 distribution remains unchanged at 10.5 per cent due in part to the lower initial gearing (47 per cent down to 43 per cent) and the debt being secured for three years at 5.55 per cent, 10 basis points lower than forecast in the PDS.
The Fund is a single asset, closed end, unlisted real estate fund which owns a six level commercial office building with 90 car spaces at 43 Burelli Street and 34 Stewart Street, Wollongong (Asset). The Asset comprises a strong tenancy mix anchored by Commonwealth and State Government tenants - representing approximately 79 per cent of the building's income.
Folkestone's Managing Director, Mr Greg Paramor said, "the success of the capital raising demonstrates that investors continue to seek investments with strong income returns and quality covenants. The Fund's forecast FY14 distribution yield of 10.5 per cent with the majority of the Asset's income being derived from Commonwealth and State Government tenants offers investors, particularly self