ASK – Abacus Storage King

Abacus Property Group is proposing to establish Abacus Storage King, a new ASX listed Self Storage operating platform and real estate investment group which will own, operate and manage the Storage King operating platform and own a $3.1 billion Investment Portfolio, comprising of $2.6 billion Self Storage Properties and $0.5 billion of Other Investments.

It is proposed that Abacus Storage King will be established through a De-stapling of Abacus Property Group such that, following the De-stapling and prior to completion of the Offer:

• Abacus Group: Abacus Property Group Securityholders will hold the same direct interest in Abacus Group; and
• Abacus Storage King: Abacus Property Group Securityholders will have a combined:

— indirect (look-through) interest in Abacus Storage King via Abacus Group’s investment in Abacus Storage King; and
— direct interest in Abacus Storage King Securities.

Through the combined indirect and direct interest, Abacus Property Group Securityholders will not have their existing interest in Abacus Storage King diluted prior to completion of the Offer.

There may be dilution for Abacus Property Group Securityholders arising from the Offer depending on their respective levels of participation in the Offer.

Abacus Property Group Securityholders will, as a result of the De-stapling, each hold one Stapled Security in Abacus Group and one Stapled Security in Abacus Storage King for each Abacus Property Group Security held on the De-stapling Implementation Date.

If the Proposal proceeds, Abacus Property Group as it currently exists will become two separately listed vehicles with different investment attributes and characteristics:

• Abacus Group (the ticker ‘ASX:ABP’ until shortly after the Normal Trading Date when it is expected to be changed to the new ticker ‘ASX:ABG’): will continue to own and manage its high quality, eastern seaboard focused $2.4 billion Commercial Portfolio, which is diversified by market, asset grade, asset life cycle, customer industry and customer profile. Abacus Group aims to direct capital towards assets that provide potential for income growth and ultimately create value for Abacus Group Securityholders.

Abacus Group will also externally manage and hold a minority interest of 19.9% in Abacus Storage King; and

• Abacus Storage King (ticker ASX:ASK): will have a GAV of $3.1 billion. It will own, operate and manage the Storage King operating platform and own a portfolio of 131 high quality and metropolitan focused Self Storage Properties, including 110 trading stores with 582,861 sqm of NLA81 and 21 developments with a valuation of $2.6 billion and WACR of 5.54%, and have $0.5 billion of Other Investments including $238 million or 7.2% interest in another ASX listed Self Storage REIT. Abacus Storage King will be externally managed by Abacus Group and have a majority independent Board of Directors.

It is anticipated that ASK will list on the ASX during August 2023.