Folkestone Education Trust Update – December 2016

19^th December 2016 – ASX Announcement

• DEVELOPMENT PIPELINE
• INCREASE IN DEBT FACILITIES LIMIT
• PROPERTY PORTFOLIO
• DISTRIBUTIONS

Folkestone Investment Management Limited (“FIML”) as Responsible Entity of Folkestone Education Trust (“FET or Trust”) (ASX:FET) is pleased to provide Unitholders with an update regarding the Trust’s recent activities.

DEVELOPMENT PIPELINE

Since 30 June 2016, FET has continued to expand its development pipeline with a further 5 sites of which 2 are settled, 2 are contracted and 1 is under exclusive arrangement. The new transactions are consistent with FET’s demographic, population growth and land value based strategy, together with FET’s “best site, best operator and best lease” objectives.

These developments will add approximately $27 million in “upon completion” value to the development pipeline. The expected total “upon completion” value of the development pipeline (22 sites) as at 31 December 2016 is approximately $122 million. One development site (Camberwell, Victoria) has been completed since 30 June 2016 with a completion value of $9.3 million.

INCREASE IN DEBT FACILITIES LIMIT

FET has increased the facility limits of its bilateral facilities by $40 million to $267 million. The facilities are currently drawn to $218 million resulting in $49 million remaining undrawn and available to fund FET’s development pipeline. The increase in facilities was provided equally by Australia and New Zealand Banking Group Limited and Hongkong and Shanghai Banking Corporation Limited on the same terms as the existing facilities.

Since 30 June 2016, further debt of $25 million has been drawn and some additional hedging positions ($10 million at a rate of 1.85 per cent) have been put in place for FY17 and FY18. FET has now hedged 63 per cent of its drawn debt for the remainder of FY17 and on average has now hedged 49 per cent of drawn debt through to June 2021.

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