Property settlement, unit issuance and operating expenses

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PLP – Property Settlement, Issuance of Units and Property Operating Expenses:

Settlement of purchase of Northland kiwifruit orchard

Settlement of the purchase from Seeka Limited of the Northland kiwifruit orchard was completed on 30
September 2019 by Booster’s Private Land and Property Portfolio, the wholesale property fund in which
the PLP invests. This transaction was announced by PLP on 26 September 2019 at the time the
agreement with Seeka was signed.

The purchase price was $15.5 million and this was funded by the issue of additional units in PLP (as
detailed below) and the allocation of cash-on-hand together with the drawdown on $6.0 million of
additional bank funding.

Full details of the property and the bank funding arrangements are set out in PLP’s Other Material
Information (OMI) document available from NZX.com and disclose-register.companiesoffice.govt.nz].

The OMI is an important document and is regularly updated as material changes occur to information
about PLP (and the Private Land & Property Portfolio wholesale fund).

The OMI now contains details of this additional property held by the wholesale fund and the value of all
properties, which now total $60.0 million against which bank funding of $24.54 million has been
obtained.

Inclusive of cash and net working capital, the Net Asset Value (NAV) of the PLP as at 30 September 2019
was $36,644,893, in total (NAV per unit = $1.0444).

Issuance of Units completed

Pursuant to Rule 3.13.2 of the Main Board Listing Rule, Booster Investment Management Limited, in its
capacity as manager of the Private Land and Property Fund (‘Fund’ or NZX:PLP), confirms it has issued
additional 4,308,676 ordinary units in the Fund effective 30 September 2019 (the number of units
allotted is confirmed 2 business days later on completion of the unit pricing process).

The units were issued to the Booster KiwiSaver Fund and Booster’s other superannuation and investment
funds to facilitate the settlement of the recent kiwifruit orchard purchase by the Private Land and
Property Portfolio in which the PLP invests.

Impending issue of further Units

Booster advises also that as at 30 September 2019 it had received applications totalling $1,347,953.70 in
value as part of the process available for investors to apply direct to the manager for the issuance of units
in PLP. The number of units to be issued will be set by the NAV per unit of the fund as at 1 October 2019
and this will be confirmed on 3 October (being 2 business days later) and the total number of units issued
will be advised to NZX and investors.

This early interest in PLP since it was listed on NZX on 18 September 2019 is welcome support for the
efforts that Booster has taken to provide this investment option to retail investors.

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A portion of these units ($150,000 in value) are to be issued to the parent of the manager as part of the
process announced on 20 September 2019 under which Booster has sought to make PLP units available
for purchase by investors through NZX. Booster will offer those units at their NAV unit price.

Change to Property Operating Expense Ratio

While Booster’s fee as manager of the Fund is calculated at 1% of the NAV of the fund, it is currently a
requirement of the particular disclosure obligations under the Financial Markets Conduct Act that apply
to PLP (under Schedule 4 of the Act) that costs related the operation of the properties which are incurred
by the manager, even where they are paid to third parties for expenses such as rates, insurance and bank
interest, have to be treated as a fund charge.

However, where the same costs are incurred by a lessee (such as applies with the newly acquired
kiwifruit orchard), these are not reported as a fund charge. As a consequence, PLP has increased its total
income (being the fixed rental) but has no material additional property expenditure that is reportable,
with the result that the property operating expense ratio of the Fund will reduce from 3.61% (as disclosed
in the Product Disclosure Statement dated 18 September 2019), to 3.1%. Likewise, the required total
disclosed fund charge figure of 4.71% has reduced to 4.2%.

This reduction does not affect the investment returns that are the aim of the fund (which have been
expressed as being pre-tax but after all fees and charges, including property expenses and interest
charges).

The inclusion of property related costs that Booster pays to third parties as part of disclosed fund charges
(while currently required under the FMCA) practically distorts any comparison between the amounts paid
to Booster as manager of PLP and managers of other property funds that have no property operating
activities (because those managers act as a passive lessor or a fund of funds) or which offer company
shares rather than unit funds i.e. managed investment schemes like PLP.

Booster will continue to engage with the FMA on this issue while continuing to provide a breakdown of all
fund changes so investors understand the impact of each type of cost that is reported.



For further information regarding the Private Land and Property Fund visit
https://www.booster.co.nz/booster-investments/private-land-and-property-fund




About PLP and the Booster Private Land & Property Portfolio (Wholesale Fund)

Both PLP and the Wholesale Fund are managed by Booster Investment Management Limited (Booster).
Currently PLP is the only investor in the Wholesale Fund and it is the wholesale fund that holds all
underlying assets and liabilities (in the name of a custodian, PT (Booster Investment) Nominees Limited,
owned by Public Trust).

The Wholesale Fund may receive direct subscriptions from qualifying investors where the status of PLP as
a listed PIE entity is not appropriate (as a listed PIE entity is taxed at a PIR rate of 28%, and passes
imputation credits on distributions to its investors).

If the Wholesale Fund issues units to anyone other than PLP, this will be detailed in the OMI.

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About Booster
Booster Investment Management Limited is part of the Booster Group which has been helping New
Zealanders save since 1998. The group currently administers superannuation and investment funds of
over $3 billion on behalf of more than 120,000 New Zealanders.
For more information, please visit www.booster.co.nz

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2 October 2019

PLP issue of units

This notice is given under NZX listing Rule 3.13.2 and relates to the issue of ordinary units in the Private Land
and Property Fund (PLP) under the terms of the trust deed.

Section 1: Issuer information
Name of issuer Private Land and Property Fund
NZX ticker code PLP
Class of financial product Ordinary units
ISIN
NZPLPE0007S5
Currency NZD
Section 2: Capital change details
Number issued/acquired/redeemed 4,308,676
Nominal value (if any) N/A
Issue/acquisition/redemption price per security $1.0444
Nature of the payment Cash
Amount paid up (if not in full) Fully paid
Percentage of total class of Financial Products issued 14.000% (as a percentage of the units
on issue at the end of the previous
month)
For an issue of Convertible Financial Products or Options, the
principal terms of Conversion or the Option
N/A
Reason for issue and specific authority for issue Settlement of property acquisition in
wholesale fund, for which funding from
the PLP required.
The PLP is a continuous issuer of units
under the clause 5.1 of the trust deed.
Total number of Financial Products of the Class after the issue
(excluding Treasury Stock) and the total number of Financial
Products of the Class held as Treasury Stock after the issue
35,085,543
In the case of an acquisition of shares, whether those shares
are to be held as treasury stock
N/A
Specific authority for the issue, acquisition, or redemption,
including a reference to the rule pursuant to which the issue,
acquisition, or redemption is made
Continuous issuer of units under clause
5.1 of the trust deed.
Terms or details of the issue, acquisition, or redemption (for
example: restrictions, escrow arrangements)
Units rank pari passu with existing units.
Date of issue/acquisition/redemption Effective date of issue 30 September
2019, with number of allotted units
confirmed on 2 October 2019

Section 3: Authority for this announcement and contact person
Name of person authorised to make this announcement Gary Scott
Contact phone number 04 8944 300
Contact email address gary.scott@booster.co.nz
Date of release through MAP 2 October 2019