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The directors are pleased to announce the incorporation of Provincia Property Fund II Limited
which is the vehicle utilised to establish a new fund, to be called Provincia II (The Fund). The
Fund will focus on leveraging the counter cyclical investment opportunities that are available in
the current market.  The target is to raise $11,616,536 over the following 12 months.

The Fund will follow exactly the same investment strategy, use exactly the same management
team, and be governed by the same board as Provincia Property Fund Limited, but is
separate from that company.

The Opportunity

As a result of the current interest rate environment and economic conditions, the directors are
seeing high-yielding industrial property sales in prime areas. The increase in market rentals for
many properties has not yet been reflected in property values, and as a result there are very
attractive buying opportunities in the current market. As interest rates drop and economic
conditions return to normality, the directors anticipate that property yields will fall as buyer
competition increases, hence the directors believe there is limited time to take advantage of
these opportunities.

With a forecast dividend yield in line with current bank deposit rates plus the potential of capital
gain, and several strong industrial properties in quality areas already identified, the directors
anticipate that this will be an attractive investment opportunity.

The directors are feeling confident that the tough times are behind us. The directors anticipate
there will be a short period where there will be discounted counter cyclical investment
opportunities available and are looking forward to generating strong returns for our investors.

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