Kiwi Property Announces $200 Million Equity Raising

NZX RELEASE 30 October 2019 Kiwi Property announces $200 million equity raising

Not for release to US wire services or distribution in the United States

Kiwi Property Group Limited (“Kiwi Property”) is pleased to announce that it is conducting an equity raise of approximately $200 million, comprising a fully underwritten placement (“Placement”) of $180 million and a retail offer (“Retail Offer”) targeting $20 million (with the ability to accept oversubscriptions of up to $10 million at Kiwi Property’s discretion).

Kiwi Property intends to use the net proceeds of the Placement and Retail Offer to pay down bank debt and reduce gearing, providing the financial flexibility to progress developments at locations including Sylvia Park, LynnMall, The Base and in the longer term at Drury, and to respond to new acquisition opportunities as they arise. The approximately $200 million of new equity being sought through the Placement and Retail Offer will reduce gearing at 30 September 2019 to 27.4% on a pro-forma basis, which is comfortably within Kiwi Property’s target gearing range of 25% to 35%.

The Placement is being undertaken today and is fully underwritten by UBS New Zealand Limited. A trading halt has been granted by NZX to facilitate the Placement.

The price of the shares for the Placement is fixed at $1.58 per share. The new shares will be allotted on 4 November and will rank equally with existing shares.

A copy of the investor presentation accompanies this NZX announcement.

Kiwi Property also intends to undertake a Retail Offer allowing New Zealand resident shareholders to subscribe for up to $50,000 of new shares. The Retail Offer is targeting $20 million of additional equity, with the ability to accept oversubscriptions of up to $10 million at Kiwi Property’s discretion. The price of the shares for the Retail Offer is fixed at $1.58 per share which is the same as the Placement share price. If scaling of the Retail Offer is required, it will be done with reference to existing shareholder holdings.

Eligible shareholders will be able to participate through either the Placement or the Retail Offer.

Details of the Retail Offer will be sent to eligible shareholders on or around 1 November 2019. The closing date for applications is 15 November 2019. The new shares are expected to be allotted on or around 22 November 2019. The Retail Offer will be open to retail shareholders with a registered address in New Zealand.

Mark Ford, Kiwi Property Chair and Independent Director said, “The approximately $200 million of new equity being sought through the offer will reduce Kiwi Property’s pro-forma gearing at 30 September to below 30% and create additional capacity to fund our development pipeline, and new acquisition opportunities.”

Kiwi Property expects a sound financial result for the six months ended 30 September 2019 and the accompanying investor presentation includes a summary of the expected key financial metrics. The Board has reaffirmed its full year dividend guidance for the year ending 31 March 2020 at 7.05 cents per share. Kiwi Property’s interim financial results are scheduled to be announced on 18 November 2019.

Due to the timing of this offer, Kiwi Property’s Dividend Reinvestment Plan has been suspended in respect of the interim dividend for the six months ended 30 September 2019, which is expected to be payable on 18 December 2019. All shareholders on the register at the record date for that dividend will be paid the dividend either by cheque or, where provided, to the nominated bank account.

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For further information please contact:

Clive Mackenzie Chief Executive Officer Kiwi Property Group Limited [email protected]

Campbell Hodgetts Communications Lead Kiwi Property Group Limited +64 27 563 4985 [email protected]

About Kiwi Property Group Limited: Kiwi Property (NZX: KPG) is the largest listed property company on the New Zealand Stock Exchange and is a member of the S&P/NZX 20 Index. We’ve been around for 25 years and we proudly own and manage a $3.3 billion portfolio of real estate, comprising some of New Zealand’s best mixed-use, retail and office buildings. Our objective is to provide investors with a reliable investment in New Zealand property through the ownership and active management of a diversified, high-quality portfolio. S&P Global Ratings has assigned Kiwi Property a corporate credit rating of BBB (stable) and an issue credit rating of BBB+ for each of its fixed rate senior secured bonds. Kiwi Property is one of the highest rated New Zealand companies within CDP (Carbon Disclosure Project) and is a member of FTSE4 Good, a series of benchmarks and tradeable indices for ESG (Environmental, Social and Governance) investors. Kiwi Property is licensed under the Real Estate Agents Act 2008. To find out more, visit our website kp.co.nz

This release is not a prospectus or offering document under New Zealand law or under any other law.

It is for information purposes only and does not constitute an offer, invitation or recommendation to subscribe for, retain or purchase any securities in Kiwi Property in any jurisdiction. This release does not constitute financial product advice or investment advice and does not and will not form part of any contract for the acquisition of Kiwi Property securities.

This announcement has been prepared for release in New Zealand. This announcement may not be released to US wire services or distributed in the United States. This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States or in any other jurisdiction in which such an offer would be unlawful. The securities in this announcement have not been, and will not, be registered under the US Securities Act of 1933, as amended (US Securities Act) or the securities laws of any state or other jurisdiction of the United States. Accordingly, the securities in this announcement may not be offered or sold, directly or indirectly, in the United States unless they have been registered under the US Securities Act (which Kiwi Property has no obligation or intention to do or procure), or are offered and sold in a transaction exempt from, or not subject to, the registration requirements of the US Securities Act and any applicable US state securities laws.

The information in this announcement is of general background and does not purport to be complete. It should be read in conjunction with Kiwi Property's other periodic and continuous disclosure announcements lodged with NZX, which are available at www.nzx.com.

This announcement may include forward-looking statements. These forward-looking statements are based on Kiwi Property's expectations and beliefs concerning future events. Forward-looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Kiwi Property, which could cause actual results to differ materially from such statements. Kiwi Property makes no undertaking to subsequently update or revise the forward-looking statements made in this announcement, to reflect the circumstances or events after the date of this announcement.