Precinct Properties New Zealand : Notice of Allotment of Subordinated Convertible Notes (PCTHA)

(a) Class of security and ISIN

Interest bearing subordinated convertible notes (the "Notes")

NZPCTDG001C6

(b) Number issued

150,000,000

(c) Issue Price

$1.00 each

(d) Payment terms

Cash

(e) Amount paid up

Fully paid

(f) Principal terms of the securities

As set out in the product disclosure statement dated 25 August 2017

All outstanding Notes will be converted into ordinary shares of Precinct ("Shares") on 27 September 2021. However, Precinct may elect to pay a cash amount of holders of the Notes rather than converting the Notes into Shares

The conversion price to convert the Notes into Shares will be set at the lesser of the conversion price cap of $1.40 per Share and a 2% discount to arithmetic average of the daily volume weighted average price of a Share in the 20 business days prior to (but not including) the conversion announcement date (expected to be 20 September 2021). The conversion price cap may be adjusted in certain circumstances

(g) Percentage of class of securities

100% (post allotment)

(h) Reason for issue

Repayment of existing bank debt providing Precinct with flexibility and additional debt capacity to fund its future development pipeline and any other opportunities as they may arise

(i) Authority for issue

Board resolution dated 16 August 2017 approving the issuance of:

1. the Notes, in accordance with Listing Rule 7.3.5, as if that Listing Rule applied to the Notes and determining the number of Shares into which the Notes convert using a conversion price equal to the volume weighted average market price of Shares over the 20 business days before the earlier of the day the issue of the Notes is made or announced to the market; and

2. the Shares on conversion of the Notes, in accordance with Listing Rule 7.3.10(b)(i)

(j) Terms of issue

As set out in the product disclosure statement dated 25 August 2017

1. Number of securities in existence after issue

2. Treasury stock

3. Date of issue

150,000,000

Not applicable

27 September 2017

Richard Hilder

Chief Financial Officer

Office: +64 9 927 1645

Mobile: +64 29 969 4770

Email: richard.hilder@precinct.co.nz