Responsible Entity: Commonwealth Managed Investments Limited ABN 33 084 098 180 AFSL 235384

Registered Address: Ground Floor, Tower 1, 201 Sussex Street Colonial First State Property Retail Pty Limited Sydney NSW 2000 Australia ABN 19 101 384 294

Manager of CFS Retail Property Trust Group Principal Office of the Manager: Level 4, Tower 1, 201 Sussex Street Sydney NSW 2000 Australia

Telephone: 02 9303 3500 Facsimile: 02 9303 3622

27 June 2013

CFS RETAIL PROPERTY TRUST GROUP (CFX)

June 2013 valuations and Emporium update

Colonial First State Property Retail Pty Limited, the Manager of CFS Retail Property Trust Group (CFX), announces that 19 of CFX’s 30 assets have been independently valued over the six-month period to 30 June 1 2013, resulting in an estimated $20.7 million or 0.4% decrease on prior book value.

The valuations in the six-month period to 30 June 2013 comprised:

Variance to book Prior New CFX New valuation value by capitalisation capitalisation ownership by ownership ownership1 Change1 rate rate Property (%) ($m) ($m) (%) (%) (%) Bayside Shopping Centre, VIC 100 583.5 0.5 0.1 6.50 6.25 15 Bowes Street, ACT^ 100 12.5 (2.6) (17.2) 11.75 12.00 Brimbank Shopping Centre, VIC 100 160.0 1.1 0.7 7.75 7.75 Broadmeadows Shopping Centre, VIC 100 325.0 (5.9) (1.8) 7.25 7.50 , NSW^ 100 845.0 32.2 4.0 5.75 5.75 Clifford Gardens Shopping Centre, QLD 100 160.9 3.0 1.9 7.75 7.75 DFO Essendon, VIC 100 134.0 0.3 0.2 7.75 7.75 DFO Moorabbin, VIC 100 102.0 0.3 0.2 8.25 8.25 DFO South Wharf, VIC 50 177.5 0.5 0.3 7.75 7.50 Elizabeth Shopping Centre, SA 100 361.0 (7.1) (1.9) 7.00 7.00 , VIC 50* 325.0 (59.4) (15.5) n/a n/a The Entertainment Quarter, NSW 50 33.2 (1.2) (3.4) 10.00 10.00 Forest Hill Chase, VIC^ 100 278.5 (7.8) (2.7) 7.25 7.25 Grand Plaza Shopping Centre, QLD 50 171.0 0.5 0.3 6.75 6.75 Northgate Shopping Centre, TAS^ 100 88.5 (3.1) (3.4) 8.25 8.25 QueensPlaza, QLD^ 100 570.0 17.9 3.2 5.75 5.75 Rockingham Shopping Centre, WA 50 266.8 14.6 5.8 6.50 6.25 Roxburgh Park Shopping Centre, VIC 100 95.0 (5.4) (5.4) 8.00 7.75 Runaway Bay Shopping Centre, QLD 50 118.9 0.9 0.7 7.25 7.25 Total 4,808.3 (20.7) (0.4)

^ Valuation as at 31 May 2013, all other valuations are as at 30 June 2013. * CFX owns 33% of the Myer Bourke Street department store and 50% of the Emporium Melbourne development project on Lonsdale Street. Note the reported valuation above refers to Emporium Melbourne only as the Myer department store was not externally valued in the current round.

Mr Michael Gorman, Fund Manager of CFX, said: “There is increasing transactional evidence for a range of shopping centre types. This demonstrates that there is solid investor appetite for quality Australian shopping centres at current book values.”

Good progress has been made on the construction of the Emporium Melbourne project, with the final retail floor slabs now being poured and services and other trades well advanced on the floors below. Despite this progress, we have not been able to recover all the previously-advised lost time, and consequently we are now aiming to complete the redevelopment around the end of the first quarter of calendar year 2014. The delay has resulted in a $15 million (CFX share) increase in forecast project costs, largely reflecting the additional interest

1 Unaudited figures. costs to be incurred, bringing the revised total forecast project cost to $590 million (CFX share). Leasing has progressed significantly in recent months, with approximately 75% of income now secured. However, in light of the subdued retail leasing market, we have revised down our income forecasts. The combination of lower income and increased costs has resulted in a revised target year-one yield on costs of approximately 5%. The adjusted project metrics have now been factored into the independent valuation, resulting in a writedown of $59.4 million of the project book value being reported.

Mr Gorman said: “Notwithstanding the tough leasing environment, we remain excited about the world class retail destination that we are creating in the heart of Melbourne, widely regarded as Australia’s most fashion conscious city. The project will incorporate a range of concept and large flagship stores housing some of the world’s best international and luxury brands. We are focused on having the project fully leased on opening.”

Excluding the impact of the Emporium Melbourne valuation, the portfolio had a modest uptick in asset values. Key assets Chatswood Chase Sydney and QueensPlaza showed solid increases driven by income growth, and Rockingham Shopping Centre was driven by a combination of income growth and a tightening in the capitalisation rate. Partially offsetting these gains were decreases at Forest Hill Chase and Elizabeth Shopping Centre driven by softer income assumptions, and Broadmeadows Shopping Centre driven by a softening in the capitalisation rate. Generally speaking the Victorian assets were negatively impacted by more conservative outgoings assumptions based on the impending Victorian Fire Services Levy and changes in land tax calculations.

As a consequence of these valuations, the portfolio weighted average capitalisation rate2 tightened slightly to 6.43% at 30 June 2013 from 6.44% at 31 December 2012. CFX’s total assets are estimated to be $8.6 billion at 30 June 2013, up from $8.5 billion as at 31 December 2012, predominantly reflecting development expenditure.

Net Tangible Asset backing per stapled security is expected to decrease slightly to $2.04 at 30 June 2013 from $2.05 at 31 December 2012. Gearing3 is expected to be around 28.9% at 30 June 2013, up from 27.9% at 31 December 2012, largely as a result of development expenditure and remains comfortably within CFX’s target gearing range of 25% to 35%.

2. Excluding DFO retail outlet centres, Myer Melbourne and 15 Bowes Street, Woden. 3. Gearing equals total drawn debt to total assets. For this calculation total assets exclude the fair value of derivatives.

ENDS

For further information please contact:

Michael Gorman Angus McNaughton Fund Manager Managing Director, Property CFS Retail Property Trust Group Colonial First State Global Asset Management Phone: +612 9303 3448 Phone: +612 9303 3765 Email: [email protected] Email: [email protected]

Investor and media contacts: Penny Berger Troy Dahms Head of Investor Relations and Communications Investor Relations and Communications Manager Colonial First State Global Asset Management Colonial First State Global Asset Management Phone: +61 2 9303 3516 or +61 402 079 955 Phone: +61 2 9303 3491 or +61 412 055 996 Email: [email protected] Email: [email protected]

About CFS Retail Property Trust Group (CFX) CFX is a retail sector-specific Australian Real Estate Investment Trust (A-REIT) which invests in high quality retail assets including super-regional, regional and sub-regional shopping centres and DFO retail outlet centres across Australia. CFX is managed by entities within CFSGAM Property on behalf of more than 17,000 investors from 23 countries with a portfolio comprised of 30 assets and a total asset value estimated at $8.6 billion at 30 June 2013.

About CFSGAM Property CFSGAM Property is the specialist property division of Colonial First State Global Asset Management, and is one of the largest real estate fund managers in Australia with $17 billion in funds under management. CFSGAM Property offers a fully integrated real estate investment platform including investment management, asset management, development management, origination and execution. CFSGAM Property manages a suite of wholesale investment products, as well as three listed real estate investment trusts in Australia and New Zealand.

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