Notice issued by: Australian Unity Funds Management Limited ABN 60 071 497 115, AFS Licence No 234454 114 Albert Road, South Melbourne VIC 3205 Investor Services 13 29 39 australianunityinvestments.com.au

Notice applicable to: Australian Unity Office Property Fund

APIR Code IPL0001AU

Office Property Fund ARSN 113 369 627

Announcement – 30 April 2013

Proposed merger with Australian Unity Second Industrial Trust We are writing to inform you of our intention to grow the Australian Unity Office Property Fund (OPF) in the short term by merging with the Australian Unity Second Industrial Trust in June 2013 (subject to SIT unitholder approval).

Further information on the proposed merger is provided in the attached OPF strategy flyer.

For more information

We regularly provide up-to-date information about the Fund, including quarterly Fund Updates and Continuous Disclosure information. These contain current information about the Fund’s gearing, interest cover, borrowings, fund diversification, valuation policy, related party transactions, distribution practices and withdrawal rights. Please refer to the ‘Quick Links’ section of this website or contact Investor Services on 13 29 39 for copies of the documents.

Australian Unity Office Property Fund Our Strategy for the Fund

Proactive Well positioned ExperiencedAustralian Unity Investments has been responsible for the management of the established Australian Unity Office Property Fund since 30 September 2011.

Since then, the Fund has benefited from our strong active management decisions which has seen the restoration of a number of key investor benefits.

We are committed to actively managing the Fund with the aim to maximise earnings and performance, whilst positioning the Fund for further growth.

Since acquiring the responsible entity of the Australian Unity Office Property Fund (Fund) 18 months ago, Australian Unity Investments has delivered on its commitment to provide investors with regular distributions and aims to provide the potential for capital growth over the long term.*

Under our management, we have either improved or successfully restored the following key investor benefits since acquiring the responsible entity on 30 September 2011:

§ Higher distributions: The Fund’s distribution return for the period from 30 September 2011 to 31 March 2013 was 8.27%* p.a. reflecting higher Fund earnings from our active asset management initiatives to increase distributions by almost 17% during this period.

§ Stronger lease profile: The Fund’s weighted average lease expiry profile has increased by almost one and a half years from 30 September 2011 to be 4.72 years as at 31 March 2013.

§ Half-yearly capped liquidity: Withdrawal offers were reinstated and offers of over $7 million have been made during the last 18 months. We intend continuing the withdrawal offers capped at 2.5% of the Fund’s net assets each half year.

§ Re-launched the distribution reinvestment plan and regular savings plan: Existing investors can reinvest their distributions at a 0.5% discount to what new investors pay (effective 25 May 2012).

§ Re-opened the Fund to new applications: New or existing investors can apply for units in the Fund under the terms of the Product Disclosure Statement (dated 2 November 2012).

§ Total return consistent with our strategy: The Fund’s total return for the period from 30 September 2011 to 31 March 2013 was 10.31% * p.a.

As you know, we pride ourselves on communicating openly and honestly with our investors. The purpose of this communication is to inform you of our intention to grow the Fund in the short term by merging with the Australian Unity Second Industrial Trust (SIT) in June 2013 (subject to SIT unitholder approval). There are several key benefits for Fund investors by merging with SIT. These include acquiring a good quality asset in a stamp duty efficient manner that is positive for Fund earnings. More information on the merger is provided later in this document.

This document also provides a valuable insight into our vision for the Fund and explains how we plan to actively manage the Fund to maximise earnings and performance, whilst positioning the Fund for further growth. Given our outlook and strategy for the Fund, this document also serves as a review of the Fund and will replace the former manager’s (Investa Funds Management Limited) intention to review the Fund in 2015.

We hope that you find this document useful and look forward to maximising performance for investors in the Australian Unity Office Property Fund.

Performance through active management

Mark PrattGeneral Manager - Property, Mortgages and Capital Markets

Mark LumbyHead of Property Funds - Retail

*Past performance is not a reliable indicator of future performance.

We have previously communicated that we believe now is an opportune time to expand our office property activities. After careful consideration of the Fund’s current position and long term strategy, we have submitted a proposal to SIT’s investors to merge with the Fund.

The merger with SIT is subject to SIT investor approval. Put simply, investors in SIT will become investors in the Fund, and the Fund will effectively acquire all of SIT’s assets and liabilities.

Benefits from the merger

The only property asset in SIT at the time of the proposed merger will be 2 Eden Park Drive, North Ryde, NSW. This asset:

§ is a mixed use office and industrial property (as at 31 March 2013, ~50% of income is derived from the office component and therefore complies with the Fund’s Investment Policy) with a unique leasing proposition that has resulted in a consistently high occupancy rate;

§ will be acquired in a stamp duty efficient manner (under the merger proposal, stamp duty is payable by the Fund at 0.55% (normally 5.5%) of the property value in SIT);

§ reduces the average portfolio age – this is beneficial from a capital expenditure perspective; and

§ gives the Fund an exposure to the North Ryde property market – one of the largest property markets in NSW, other than the Sydney CBD, which has a vacancy rate of 7.3% (below the national average of 8.4% as at 31 January 2013).

Essentially, the merger allows the Fund to acquire a good quality asset in a stamp duty efficient manner that is forecast to be positive for earnings and is expected to slightly reduce the Fund’s gearing. A summary of the 2 Eden Park Drive property is provided later in this document.

The merger involves a scrip-for-scrip exchange of Fund and SIT units based on the respective net asset value of the Fund and SIT immediately prior to the merger. As the merger is being implemented based on net asset values, we believe the consideration is fair and reasonable to both SIT and Fund investors.

The Fund’s constitution permits the responsible entity to issue units in the Fund as part of a merger proposal. As a result, investors in the Fund are not required to vote on the proposed merger with SIT.

After the merger

After the merger, the Fund will own an interest in nine properties * located throughout Australia. Combined, the properties will have over 100 tenants and more than 50% of the Fund’s income will be derived from credit rated tenants including Telstra and State and Commonwealth Government departments.

A representation of the Fund’s future holdings is shown below.

Merging with quality

The Fund will own an interest in nine properties located throughout Australia with a total value of approximately $360 million after the merger.

Assets in the Office Property Fund after the merger 1

Office Property Fund (100% owned properties)

§ 2 Eden Park Drive (NSW)

§ 64 Northbourne Avenue (ACT)

§ 10 Valentine Avenue (NSW)

§ 241 Adelaide Street (QLD)

§ 468 St Kilda Road (VIC)

§ 32 Phillip Street (NSW)

Partly owned properties

§ 80 Stirling Street (WA) * – 50% ownership

§ 30 Pirie Street (SA) – 50% ownership

§ 260-300 Elizabeth Street (NSW) * – 19.99% ownership

Cash Borrowings

1 This excludes other receivables and liabilities e.g. trade debtors and creditors.* At the time of issue of this document, an expression of interest campaign has been

iniated on these properties which may potentially lead to their sale.

241 Adelaide Street, Brisbane QLD 260-300 Elizabeth Street, Sydney NSW*

The Fund’s current property portfolio

The Office Property Fund currently has a diversified portfolio of eight quality office buildings across Australia’s major capital cities with a book value of approximately $324 million (as at 31 March 2013).

1 241 Adelaide Street, Brisbane QLD

2 260-300 Elizabeth Street, Sydney NSW * (19.99% ownership interest)

3 30 Pirie Street, Adelaide SA (50% ownership interest)

4 10 Valentine Avenue, Parramatta NSW

5 32 Phillip Street, Parramatta NSW

6 64 Northbourne Avenue, Canberra ACT

7 468 St Kilda Road, Melbourne VIC

8 80 Stirling Street, Perth WA * (50% ownership interest)

* At the time of issue of this document, an expression of interest campaign has been initiated on these properties which may potentially lead to their sale.

1 2

30 Pirie Street, Adelaide SA 10 Valentine Avenue, Parramatta NSW

Merger property

Key features

Location North Ryde

Lettable area (sqm) 10,340

Car parks 189

Occupancy (by area) 83.9%

WALE by area (at 31 March 2013) 1.5 years

* A non-binding Heads of Agreement has been signed over another unit which will increase the occupancy to 88.5% effective 1 September 2013.

Tenancy profile

Unit Major tenants Area (sqm) Area (%) Expiry

1, 2, 9A & 10A NuSkin Australia 1,427 14% 31 Dec 2013

15 & 16 Enterix 967 9% 30 Jun 2016

2 Eden Park Drive, North Ryde NSW

2 Eden Park Drive is a modern complex completed in 1999 comprising 16 attached units, incorporating office and warehouse components.

The three level office areas are at the front of the building. The warehouse areas at the rear of the building are split over two levels.

North Ryde is an established commercial precinct located about 15 km from Sydney’s CBD by a motorway.

The property is also close to the Macquarie Park railway station on the Chatswood to Epping railway link.

0%

15% 12% 13%7%

0% 0% 0% 0% 0%5%11%

36%

Vaca

nt

FY20

13

FY20

14

FY20

15

FY20

16

FY20

17

FY20

18

FY20

19

FY20

20

FY20

21

FY20

22

FY20

23+

20%

40%

60%

80%

100%

Lease expiry profile (by income)

Valuation

Valuation date 31 December 2012

Independent valuer Knight Frank

Valuation (100% interest) $29.25 million

Rate/sqm $2,829

Capitalisation rate 9.00%

Discount rate 9.75%

Terminal yield 9.00%

2 Eden Park Drive, North Ryde NSW

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32 Phillip Street, Parramatta NSW 64 Northbourne Avenue, Canberra ACT

Our outlook

Office property generally performed well across most Australian markets, with the sector delivering a 9.7% total annual return nationally to 31 December 2012 according to IPD Research.

Whilst the Australian economy has some strong economic fundamentals – low interest rates, relatively low unemployment and inflation within the RBA’s target band – business confidence is subdued. This is tempering demand from tenants for new space, particularly with the dampening mining activity and general market uncertainty. We expect that many tenants will require a sustained period of profit growth before seeking expansion. As a result, we see some, but limited, rent growth in the near term.

Despite the subdued tenant demand, vacancy rates remain near, or below, historical averages, and with limited supply of new office buildings being built, we expect that to continue. The limited supply over the last few years is mainly due to the low availability of debt for developers and the relatively onerous lending conditions for construction finance. Also factoring in the three-to-four year time frame it takes to develop a new office building, supply of new office buildings will remain low in the medium term. This should help to put upward pressure on rents.

Investment demand is showing signs of improvement due to low interest rates, stronger equity markets and significantly higher property yields compared to other developed and regional economies. This latter point is one of the reasons why offshore investors are attracted to the Australian office market. If the competition to acquire assets continues to increase, the outlook for capital growth will be positive.

This outlook and the key features of the Fund make it well positioned for future growth, in particular:

§ Quality tenants: Telstra, State and Commonwealth government departments comprise more than 50% of the portfolio’s income (as at 31 March 2013).

§ High occupancy: The Fund’s occupancy rate across its portfolio is 93.99% (as at 31 March 2013) which is due to the quality of the Fund’s properties and the good tenant relationships we maintain.

§ Solid balance sheet: The Fund’s loan to valuation ratio 1 is 52.32% (as at 31 March 2013) against a banking covenant of 65% (the value of the Fund’s portfolio would need to reduce by 19.50% before reaching the banking covenant) and ample capacity to fund:

– capital expenditure; – incentives associated with lease renewals; and – value adding opportunities.

§ Strong Weighted Average Lease Expiry (WALE): The Fund has a strong WALE which currently sits at 4.72 years (as at 31 March 2013).

1 References to loan to valuation ratio are calculated according to the financier’s definition, being the ratio of borrowings to the total independent value of properties.

5 6

468 St Kilda Road, Melbourne VIC 80 Stirling Street, Perth WA*

How we intend to grow the Fund

Our focus remains on actively managing the Fund to maximise earnings and performance, whilst positioning the Fund for future growth.

ACTIVELY MANAGE

Tenants and Properties

§ Selectively acquire and potentially sell assets to maintain an optimal portfolio of income producing office properties in Australian capital cities and major regional centres – this may be achieved by dealing on assets directly or by merging with another fund.

§ Aim to ensure the Fund’s portfolio is diversified by geographic location and tenant profile.

§ Consider investing in refurbishments (i.e. capital expenditure invested in improving or expanding existing assets) if an opportunity to increase income, valuation, and/or WALE for the property is identified.

§ Retain high quality tenants and low vacancy through active management of leases and good tenant relationships.

§ Maintain a high WALE across the portfolio.

§ Assess market conditions so that potential rental increases can be maximised.

STRENGTHEN

The Fund’s Financial Position

§ Manage the Fund’s level of borrowings via the exercise of suitable capital management strategies to achieve a long term gearing ratio between 40% and 45%.

§ Manage interest rate risk through a comprehensive interest rate hedging program. The primary purpose of interest rate hedging is to provide certainty of future cashflows, which helps manage the Fund’s distribution return and compliance with loan covenants.

§ Make sound investment decisions with a view to improving distribution returns and capital growth in context of current and forecast market conditions.

MAINTAIN

Investor Benefits

§ Maximising earnings and performance returns through careful active management strategies that provide sustainable and competitive distributions, and improve the performance of the Fund.

§ Maintain the ‘open’ status and distribution reinvestment plan to encourage and promote additional investment in the Fund.

§ Deliver clear and transparent reports to unitholders in a timely and convenient manner.

§ Aim to maintain the Fund’s liquidity by continuing the withdrawal offers available to investors on a half yearly basis capped at 2.5% of the Fund’s net asset value.

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More information

Important InformationThis document is dated 3 May 2013. All information is current as at the date of this document unless otherwise specified.This investment product is issued by Australian Unity Funds Management Limited ABN 60 071 497 115 AFS Licence No. 234454. The information in this document is general information only and is not based on the financial objectives, situations or needs of any particular investor. In deciding whether to acquire, hold or dispose of the product, you should obtain the current Product Disclosure Statement (PDS) dated 2 November 2012 and consider whether the product is appropriate for you. A copy of the PDS is available at australianunityinvestments.com.au or calling our Investor Services at 13 29 39. Investment decisions should not be made upon the basis of its past performance or distribution rate, since future returns will vary. The information provided in the document is current as the time of publication.

Visit our website at www.australianunityinvestments.com.au/opf for the latest information and updates on the Australian Unity Office Property Fund.

For any specific questions about the Fund:

§ investors can contact a member of our Investor Services team on 13 29 39. § financial advisers can contact their Australian Unity Business Development Manager

or call a member of our Adviser Services team on 1800 649 033.

Alternatively, you can email us at investments@australianunity.com.au.