23 October 2013

The Manager Company Announcements Office Australian Stock Exchange Level 4, 20 Bridge Street Sydney NSW 2000

ELECTRONIC LODGEMENT

Dear Sir or Madam

BlackWall Property Funds Limited Annual General Meeting CEO's presentation

In accordance with ASX listing rule 3.13.3, attached is a copy of the material to be presented to shareholders at the Annual General to be held at 11.15am today.

Yours sincerely

Don Bayly

Company Secretary

October!2013

BlackWall!Storage!Fund!Matures

Bakehouse!Construction!Commences!

Character(

Transport(

" The"Bakehouse" Quarter"is"a" unique"urban" business"precinct" comprising commercial" office,"retail"and" entertainment" uses."

Parking(( Construction!has!commenced!on!the!expansion! of! the! Bakehouse! Quarter's! office! accommodation.! Known! as! Building! H2! this! stage! is! comprised! of! over! 4,500! sqm! of! open! plan!office!space.!

Building!H2,!like!many!parts!of! the!Bakehouse! Quarter,!retains!and!adaptively!reuses!many!of! the! site's! original! industrial! features! including! high! clearances,! sawItooth! roofs,! exposed! timbers!and!brick!work.

The! design! allows! open! plan! layout! for! up! to! 4,000!sqm!of!contiguous!space!to!accommodate! large! tenants!or!it!can!be!broken!up!into!small! flexible!floor!plates.!

The! new! office! accommodation! will! integrate! with! landscaped! open! spaces! and! on! grade! parking.! As! we! are! converting! or! adapting! existing!structures!the!construction!leadItime!is! reduced! and! we! expect! to! be! progressively! handing! over! to! new! tenants! in! the! quarter! beginning!April!2014.!

Our! plans! include! the! development! of! a! "hub"! or!shared!work!space! that!will!supplement!the! site's! existing! serviced! offices! and! short! term! suites! offer.! WT! Serviced! Offices,! a! BlackWall! subsidiary,! has! operations! at! both! the! Bakehouse! and! Neutral! Bay,! and! is! planning! a! new!operation!in!Pyrmont.!

For! information! please! visit! our! website! at! www.wtservicedoffices.com.au

For!leasing!enquiries: BlackWall(Property(Funds

P:!02!9033!8611 E:[email protected]

P1REIT!wins!in!NSW!Court!of!Appeal

www.blackwallfunds.com.au!!!!!!!

October!2013

The!MPS!Proceedings!5 History!and!Facts

MacarthurCook! Property! Securities! Fund! (ASX! Code:! MPS)! commenced!the!court!action!in!May!2010.!The!action!relates! to!contracts!executed!in!2007!by!the!manager!of!the!Trust!at! the! time,!Reed!Property!Group.!MPS!is!a! trust!managed!by! MacarthurCook! Fund! Management! Limited.! Ironically! just! as!P1REIT's!manager!changed!so!too!did!MPS's,!with!the!on1 market! take1over!of!MacarthurCook! by! the! AIMS! Financial! Group!in!July!2009.

Under!the!contracts!in!question!MPS!invested!\$15!million!in! the!Reed!Property! Trust! (as!P1REIT was! then! known).!The! agreements!(which,!to!our!knowledge!were!not!disclosed!to! unitholders! on! either! side)! obliged! Reed! to! redeem! MPS's! investment! from! the! proceeds! of! a! planned! capital! raising.! Significantly!this!"redemption"!was!to!be!at!\$1!per!unit!and! was! expressed! to! be! subject! to! the! provisions! of! the! Corporations!Act!and! the!Trust's!Constitution.!The!contract! went! on! to! provide! that! if! MPS's! investment! was! not! redeemed! within! 12! months! the! Trust's! responsible! entity! (then! Reed! Funds! Management! Limited)!"in! its! personal! capacity"!must!buy!MPS's!15!million!units! for!\$15!million.! Of! course! economic! circumstances! changed! drastically! between!December!2007!and!December!2008!(the!period!in! which!MPS!was!to!be!redeemed)!and!in!September!2008!the! Trust! was! frozen! due! to! falling! asset! values! and! an! ascending! gearing! ratio.! By! December! 2008! the! Trust! had! no! capacity! to! redeem! the! MPS's! investment! and! Reed! Funds! Management! (an! entity! then! partly! controlled! by! Lehman!Brothers)!was!struggling!to!survive.!It!is!important! to!note!that in!2007!when! the!contracts!were!entered!into,! Reed!Funds!Management!did!not, and!has!never! since, had! the! financial! capacity! to! buy! MPS's! 15! million! units! for! \$1! per!unit.!This!fact!was!known! to!all!parties!at! the! time!and! was! made! known! to! AIMS! prior! to it! acquiring MacarthurCook.

BlackWall's! businesses! took! control! of! the! Reed! Property! Trust! in! June! 2009.! Prior to! this! MacarthurCook! and!Reed! attempted! unsuccessfully! to! complete! a! transaction! under! which! MacarthurCook! took! control! of! the! Reed! Property! Trust.

At! this! time! any! issues! between! MPS! and! Reed! were! irrelevant! because! the! Trust was! under! significant! stress! with!gearing!at!more!the!80%!of!its!asset!values.

BlackWall! took! control! by! purchasing Reed! Funds! Management!Limited!and! therefore! the!management!rights! to! the! Trust.!We! were! made! aware! of! and! understood! the! nature!of! the!potential!dispute!between! the!Trust! and!MPS! and! factored! this,! and! the! financial! state! of! the! Trust,! into! the!price!we!paid.!

BlackWall!worked! to! restructure! the! Trust's! balance! sheet,! sold! some! smaller! assets! and! reduced! gearing.! In! October! 2011! P1REIT listed! on! the! ASX! and! in! May! 2012! the! responsible! entity! obligations! of! the! Trust! were! moved! away!from!Reed!Funds!Management!Limited!to!BlackWall's! licenced!entity!TFML!Limited.

At! first!instance!MPS's! claim was!successful with judgment handed!down!in!its!favour!in!August!2012. In!summary, the! judgment imposed! an! obligation! on! the! Trust! to! redeem! MPS's! \$15! million! in! priority! to! all! other! unitholders.! The! court also found! that! the! obligations! of! Reed! Funds! Management,!although!stated!to!be!in!its!personal!capacity,! were!in!fact!obligations!of!the!Trust.

On 3! September 2013 the! Court! of! Appeal! overturned! the! original! judgment. The! Court! found! that! it! was! illegal! for! MPS!to!withdraw!from!the!Trust!(at!\$1!per!unit). Further!it! was! found! that! the! obligations!expressed! to! be! personal! to! Reed! Funds! Management! Limited! were! separate! to,! and! could!not!be!satisfied!from, the!assets!of!the!Trust.

The! MPS! proceedings! have! cost! the! Trust! approximately! \$1.2! million! in! legal! fees! of! which! we! would! expect! to! receive! between! seven! and! eight! hundred! thousand! back! through!the!costs!order!made!by!the!Court!of!Appeal.

MPS! has! lodged! an! application! to! have! the! decision! of! the! Court!of!Appeal reviewed!by!the!High!Court!of!Australia.!It!is! important!to!note!that!this!is!not!an!"as!of!right!appeal".!This! means!MPS!must!seek! the!High!Court's! permission! to! have! the!matter!heard!on!the!grounds!that!their!case!raises!legal! issue! of! sufficient! importance.! The! Trust's! legal! representative! will! make! submissions! opposing! this! application.! This! process! is! expected! to! take! up! to! six! months.

BlackWall's!New!Project!

2,700%sqm% floor plates

"We\$are\$working\$ with\$the\$building's\$ significant\$ technical\$ infrastructure\$to\$ position\$it\$as\$a\$ Media\$and\$ Technology\$Hub."

Motorists!on!Sydney's!ANZAC!Bridge!will! have! noticed! BlackWall's! newest! asset! management!mandate.!

BlackWall!is!managing! the!repositioning! of! a! large! commercial! building! in! Pyrmont! on! the! CBD! fringe.! The! sevenK level, 15,000! sqm! building! is! leased! to! tenants!including!Verizon,!Fairfax!Media! and!Hostworks.!BlackWall!is!tasked!with! leasing! up! the! 7,000! sqm! left! vacant! when!key!tenant!Fox!Sports!vacated!and! pay! TV! operator! UBI! slipped! into! liquidation.

The! building's! available! space! has! significant! technical! capabilities! including! extensive! power! feeds,! UPS! and! generator!backup! along!with! raised! flooring! and! a! dedicated! AC! plant.! In! addition!the!Fox!Sports!office!fit!out!and studio!space!have been!left!in!place!to!be redeployed! for! prospective! media! and! broadcast!tenants.

BlackWall! is! working! on! deals! ranging! from!150!– 2,000!sqm.!

For!leasing!enquiries:

BlackWall%Property%Funds P:!02!9033!8611 E:[email protected]