RG 46 Disclosures

In September 2008, the Australian Securities and Investments Commission (ASIC) released Regulatory Guide 46 – Unlisted property schemes – improving disclosure for retail investors (RG 46) setting out eight principles for improved disclosure to help retail investors understand the risks associated with investing in unlisted property funds and to decide whether such investments are suitable for them.

The Guide covers the following disclosure requirements:

Disclosure Principle 1 – Gearing Ratio

The Trust currently has no borrowings.

Disclosure Principle 2 – Interest Cover

The Trust currently has no borrowings.

Disclosure Principle 3 – Borrowing

The Trust’s $66.5m loan facility with the Commonwealth Bank of Australia was fully repaid on 4th October 2013.

Disclosure Principle 4 – Portfolio Diversification

The Trust’s sole asset at 10 Binara Street, Canberra was sold on 4th October 2013.

Disclosure Principle 5 – Valuation Policy

Pursuant to the constitution of the Trust, the Responsible Entity may determine the valuation methods and policies it will apply from time to time in determining the net asset value of the Trust. Independent valuations are performed as at 30 June each year by registered valuers who are appropriately qualified to undertake the valuation, based on the type and locality of the property being valued. All independent valuations comply with relevant industry standard and codes.

Disclosure Principle 6 – Related Party Transactions

The Responsible Entity has established a policy for proposed or potential related party transactions, to ensure that any actual or potential conflicts of interest are identified and appropriately dealt with. Any potential transactions with related parties go through an assessment process, and must be approved unanimously by the Board. No related party transactions can be approved or entered into unless they are strictly on arms-length, commercial terms (unless otherwise approved by Unitholders , with any possible conflicts of interest having been fully disclosed). Any related party transactions are then monitored to ensure they are carried-out as approved and continue to be on arms-length terms.

The following related party fees were paid or payable to the Responsible Entity during the year ended 30 June 2014:

Disclosure Principle 7 – Distributions

Year ended 30 June 2014

Year ended 30 June 2013

Year ended 30 June 2012

Year ended 30 June 2011

Year ended 30 June 2010

(1) Units in the CorVal Industry House Trust were first allotted on 22 January 2010. The first income distribution was therefore in the quarter ended 31 March 2010.

Disclosure Principle 8 – Withdrawal Rights

Investors have no rights to withdraw from the Trust as it is a fixed term investment with no ongoing liquidity.