BURSTONE GROUP LIMITED - Burstone Fund Management Update - Australia

Burstone Fund Management Update  -  Australia

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


BURSTONE FUND MANAGEMENT UPDATE - AUSTRALIA

Background

As mentioned in Burstone's interim results announcement in November 2024, the Irongate Group
("Irongate"), in which Burstone holds a 50% interest ("Irongate JV"), concluded an agreement to
establish a new industrial programmatic joint venture ("Programmatic JV") with TPG Angelo Gordon,
a diversified credit and real estate investing platform within TPG, with approximately US$91 billion
assets under management. TPG is a leading global alternative asset management firm.

The Programmatic JV has provided an initial soft commitment of A$200 million of equity to invest in
industrial assets in Australia, with the aim to upsize upon successful deployment. Burstone, through
Irongate, has a minority co-investment in the Programmatic JV and the Irongate JV provides the
investment and asset management functions.

The Programmatic JV continues the growth of the funds management platform in Australia on the
foundation of a well-defined strategy, with a focus on acquiring and managing industrial and logistics
properties located in the main metropolitan areas along the eastern seaboard of Australia.

Acquisitions made to date

The Programmatic JV has now concluded the acquisition of A$280 million of industrial logistics assets
in New South Wales and Queensland, deploying approximately A$133 million of equity into four assets.

These assets include:

    -   Zeleny Road, Minchinbury, New South Wales. The forward-funding of a 10,190sqm state-of-
        the-art cold storage facility which has commenced development and is subject to a triple-net
        lease.
    -   South Pine Road, Brendale Queensland. A 9.7-hectare site with a GLA of 31,738sqm with a 3.7
        year WALE.
    -   Interchange Industrial Estate, Narangba, Queensland. A 10-hectare site with a GLA of
        34,382sqm with a 4.9 year WALE.
    -   Williamson Road, Ingleburn, New South Wales. A 4-hectare site with GLA of 18,564sqm with
        a 2.9 year WALE.

The investments will target total returns at a JV level of approximately 15%, underpinned by moderate
cash yield and potential capital value unlock through active asset management initiatives.

These properties align with the strategic investment approach that Irongate has consistently pursued
over the past 15 years—acquiring infill industrial real estate in Australia's most supply-constrained
markets. With strong underlying property fundamentals, these assets are well-positioned to benefit
from Irongate's active asset management and hands-on property management strategy.

Conclusion

The Programmatic JV aligns with Burstone's fund and asset management strategy, leveraging internal
expertise to deliver strong total returns to Burstone and its capital partners. The provision of
investment and management capability alongside globally recognised capital partners, further
enhances the overall return to Burstone and demonstrates the Group's ability to deliver on its stated
strategy of expanding its fund and asset management platforms.

As part of the Irongate JV's ongoing growth strategy, it has identified an attractive pipeline of
strategically aligned and financially accretive property acquisition opportunities across Australia, that
are currently under evaluation.



24 February 2025

Sandton

Sponsor: Investec Bank Limited

Date: 24-02-2025 11:00:00
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